Amid the AI boom, another sector is heating up! Yantai Jereh Oilfield Services Group Co., Ltd. (002353) saw its stock price hit a new all-time high on December 12, surging over 7% intraday before closing with a 4.69% gain. Year-to-date, the stock has soared 109.94%. Trading activity surged in December, with average daily turnover reaching 2.197 billion yuan, up 324.92% month-on-month. Why has this oil and gas equipment company suddenly become a market favorite? The answer likely lies in its entry into the AI data center sector.
On November 11, Jereh’s wholly-owned subsidiary, Jereh Minder Energy Group, signed a global strategic cooperation and bulk order agreement with Baker Hughes in Shanghai for NovaLT gas turbines. Shortly after, Jereh secured generator set orders. On November 27, Jereh Minder signed a sales contract exceeding $100 million with a global AI industry leader. By December 2, it inked another $100M+ deal with a North American client.
**AI Data Center Expansion Drives Gas Turbine Demand** The acceleration of global digitalization and the growth of AI and high-performance computing are fueling a new wave of data center expansion in North America. Next-gen computing infrastructure, particularly AI data centers, demands higher reliability, responsiveness, flexibility, and sustainability from energy systems.
Guojin Securities notes that gas turbines—with advantages like rapid deployment, stable power output, quick startup, low emissions, and cost efficiency—are poised to become a key power solution for AI data centers.
Per Global Energy Monitor (GEM), GE Vernova, Siemens Energy, and Mitsubishi Heavy Industries dominate two-thirds of the global gas turbine market for under-construction gas power plants. GE Vernova leads with ~55GW in capacity. Recent earnings reports from these giants highlight sustained high order growth.
Buoyed by AI data center demand, GE Vernova raised its multi-year earnings guidance, doubled dividends, and expanded buybacks. CEO Scott Strazik revealed at an investor event that the company expects to sign 80GW in combined-cycle gas turbine contracts by year-end, driven by surging power needs from large data centers. Notably, GE Vernova has sold out all gas turbine capacity through 2028, with only 10% remaining for 2029.
On the market front, GE Vernova’s stock has surged over 110% YTD, briefly hitting a record $731/share on December 10 before settling near $700. Its market cap exceeds $190B.
**Sector Outlook & A-Shares Rally** CITIC Securities predicts global gas turbine supply-demand balance by 2028, with Chinese supply chains benefiting from robust orders. The sector’s growth is further supported by overseas AI data center-driven power demand and aftermarket services.
Dongwu Securities highlights that the global gas turbine market, led by Siemens, GE, Mitsubishi, and Caterpillar (via Solar Turbines), leaves ample room for domestic substitution, recommending focus on local brands.
In A-shares, over 20 gas turbine concept stocks are thriving. On December 12, the sector rallied, with six stocks—including Boying Special Welding and Dongfang Electric—hitting limit-up. Five stocks, including Yingliu Co. and Jereh, closed at record highs.
YTD, the sector has averaged a 62.96% gain, outperforming the SSE Index. Five stocks—Yingliu, Boying, Liande, Jereh, and Longda—have more than doubled. Yingliu leads with a 196.95% surge, supplying Siemens Energy’s F-class turbine blades and developing H-class blades as its sole Chinese provider. It also collaborates with GE on LM2500/LM6000 series products.
Institutional research is intensifying, with Boying topping the list at 35 surveys this year. The company noted its HRSG (heat recovery steam generator) and oil-gas composite pipe businesses are gaining traction, with orders in hand and new clients under review.
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