According to a research report by SDIC Securities, investors in the power sector should focus on three core investment themes: 1) beneficiaries of computing-electricity integration—green power direct-supply operators and grid equipment supporting data centers; 2) companies with prominent HALO attributes—ultra-high voltage transmission and large-scale energy storage investment operators; and 3) targets driven by both security and low-carbon initiatives—thermal power groups with flexible regulation capabilities and electricity market trading platforms. Due to the interdisciplinary nature of power sector research, which involves energy policy, grid technology, and electricity markets, individual investors may find it challenging to fully grasp the investment opportunities. Participation in the power sector can be facilitated through capital markets and professional institutional investors. The report recommends investors pay attention to a representative index product in the A-share power utilities sector: the Invesco Great Wall CSI All Share Power Utilities ETF (159158.SZ). Key views from SDIC Securities are as follows: It is clear that under the dual drivers of the AI technology revolution and energy transition, the power industry is undergoing a qualitative transformation from a "traditional utility" to a "digital energy infrastructure." The triple resonance of computing-electricity synergy, HALO asset revaluation, and energy security presents long-term allocation opportunities for the power sector. The CSI All Share Power Utilities Index has delivered a return of 26.93% over the past three years, with an excess return of 9.24% compared to the CSI 300, fully validating the investment value of the power sector. Objectively speaking, this year the firm has observed that the technology revolution, represented by artificial intelligence, is profoundly reshaping the positioning of the power industry. In the short term, the explosion in computing power is reshaping the structure of electricity demand—according to forecasts by the China Academy of Information and Communications Technology, by 2030, electricity consumption by data centers in China will reach 400 billion kilowatt-hours, increasing its share of total societal electricity consumption from less than 2% currently to 6%. The demand for highly flexible and reliable power supply for computing is driving intelligent upgrades in the power system, transitioning the power industry from a "basic guarantee" to an "enabler of digital infrastructure." In the medium term, power assets are facing a HALO revaluation opportunity. Heavy assets such as power grids, ultra-high voltage transmission networks, and large-scale energy storage facilities possess characteristics of high barriers, long lifespans, and resistance to technological disruption. Goldman Sachs and Morgan Stanley have already included grids and energy storage in their HALO asset baskets, considering them key hedges against AI risks. In the AI era, light-asset models face increased risks of technological disruption, while the strategic value of physical assets like power is being systematically revalued. From the perspective of energy security, the Russia-Ukraine conflict and recent U.S.-Iran tensions have exposed the fragility of traditional energy supply chains, significantly elevating the strategic importance of electricity as a "resilient energy source." China's pathway is clear: in the short term, ensuring supply through "flexible retrofitting of coal power + energy storage," and in the long term, achieving self-reliance via "large-scale wind and solar bases + ultra-high voltage transmission." State Grid has announced fixed asset investments of 4 trillion yuan during the 15th Five-Year Plan period, a 40% increase compared to the 14th Five-Year Plan, presenting development opportunities for ultra-high voltage, smart grids, and energy storage.
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