Analysis of Investment Opportunities for Equipment Suppliers such as Jereh Co. Amid Supply Chain Bottlenecks in North American Natural Gas Power Plants

The surge in power demand from North American AI data centers is driving natural gas power plant construction, while supply chain bottlenecks are creating historic opportunities. As the only A-share company manufacturing complete gas turbine units in North America, Jereh Co. (002353.SZ) is in a favorable position in supply chain restructuring due to its localized production capacity and rapid delivery capabilities.

• GE Vernova heavy gas turbine orders are scheduled until after 2028, with new order delivery cycles generally exceeding 36 months [2]
• Approximately 60% of Siemens Energy’s new gas turbine orders in the first half of the year came from data center-related projects [2]
• The global gas turbine production capacity utilization rate has reached 90%, and there is a 3-5 year lag period for expanding manufacturing capacity [6]

• As of Q3 2025, GE Vernova’s power business had $84.1 billion in outstanding orders, with a delivery cycle of approximately 4.3 years [6]
• Siemens Energy’s Gas Services had €5.3 billion in outstanding orders, a record high in absolute terms [6]
• Global new gas turbine orders increased by 32% year-on-year in 2024 [6]

Power equipment manufacturers are constrained by supply chain bottlenecks, including potential gaps in silicon steel and copper, as well as shortages of electrical engineers and assembly workers, which exacerbate the overall supply-demand imbalance [2]. This has led to multi-dimensional constraints on natural gas power plant construction in North America.

Jereh Co. already has total assembly capabilities for various equipment in North America, and has expanded production capacity on the basis of its original plant in Houston, USA, with total assembly production capabilities for various equipment such as gas turbine power generation equipment [3]. This localized layout enables it to:

1. Shorten delivery cycles
   : Compared to overseas giants’ delivery cycles of over 36 months [2], Jereh Co. can provide faster delivery responses
2. Avoid trade barriers
   : Local production avoids international trade policy risks
3. Reduce logistics costs
   : Local production and local sales reduce long-distance transportation costs

As the only A-share company manufacturing complete gas turbine units in North America, Jereh Co. uses mature gas turbine heads from Siemens and Baker Hughes for complete set design and integration, including control systems, generators, mobile chassis, etc., to create generator sets that meet specific scenario needs [3].

Recently, Jereh Co. has made major breakthroughs in the North American market:

• Reached cooperation with a global AI industry giant [1]
• Obtained an over $100 million gas turbine generator set sales contract, entering the North American data center market [1]
• Has rapid delivery capabilities, laying a foundation for obtaining more orders from AI giants [3]

According to McKinsey’s forecast, the United States will put 55GW of new data centers into operation from 2025 to 2030 [2]. Data center power consumption will increase from 176TWh in 2023 to 325TWh-580TWh in 2028, accounting for 6.7%-12% of U.S. power demand [5].

Overseas mainstream power equipment manufacturers have slow capacity expansion, creating substitution opportunities for Chinese enterprises:

• High-end casting and production expansion cycles are long, and domestic manufacturers are expected to enter the global supply chain [5]
• Due to the high value proportion of core components of gas turbines such as hot-end power turbine blades and main shafts, domestic OEMs and key component suppliers are expected to benefit [5]
• China’s power equipment export enterprises have been recognized by key overseas countries, and developed markets are gradually being broken through [2]

The company has strong fundamentals:

• In the first half of 2025, natural gas business revenue increased by 112.69% year-on-year, and new orders increased by 43.28% [1]
• Successfully won a 6.126 billion yuan natural gas增压站 project from Algeria National Oil Company [1]

1. Price fluctuation risk
   : Volatility in crude oil and natural gas prices may affect investment willingness [1]
2. Market competition risk
   : International operations face competition from local enterprises and payment collection risks [1]
3. Technology substitution risk
   : New power generation technologies such as SOFC may partially substitute gas turbines [2]

1. Capacity ramp-up
   : Houston capacity expansion takes time and will not be fully completed until 2026 [3]
2. Customer certification
   : North American data center customers have extremely high requirements for equipment reliability, and the certification cycle is long
3. Supply chain coordination
   : Need to establish a complete localized supply chain system in North America

1. Order fulfillment
   : The execution of over $100 million orders in North America will bring significant performance contributions
2. Capacity release
   : Gradual release of Houston capacity will support more order acquisition
3. Customer expansion
   : Cooperation with AI giants lays the foundation for subsequent orders

1. Huge market space
   : The upper limit of new natural gas power stations in North America from 2025 to 2030 is about 58GW, providing sufficient market space for equipment suppliers
2. Optimized competition pattern
   : Supply chain bottlenecks create structural opportunities for Chinese enterprises
3. Profitability improvement
   : Localized production will significantly improve gross profit margin

Currently, Jereh Co.'s stock price is 71.00 yuan, with a price-earnings ratio of 25.36 times [0]. Based on the expected net profit of 3.163 billion yuan in 2025, the corresponding valuation is in a reasonable range. Considering the company’s high performance growth expectations and breakthrough progress in the North American market, it has significant revaluation potential.

Supply chain bottlenecks in North American natural gas power plants have created historic opportunities for Chinese equipment suppliers such as Jereh Co. With advantages in localized production capacity, technology integration capabilities, and rapid response, Jereh Co. is in a favorable position in the North American AI data center power supply market. As power demand from North American AI data centers continues to grow and supply chain restructuring deepens, Jereh Co. is expected to gain significant market share and performance growth in this wave of energy transformation.

[0] Jinling API Data
[1] Jereh Co. Official Website - “Strong Entry! Jereh Co. Wins Another Over $100 Million Order in North America, Empowering New Ecosystem of Data Center Power” (https://www.jereh.com/cn/news/news-detail-615431.htm)
[2] Sina Finance - “The End of AI is Power | Guojin Research” (https://finance.sina.cn/stock/ggyj/2025-11-17/detail-infxspkk5156387.d.html?vt=4)
[3] Xueqiu - “Jereh Co.: Has Total Assembly Capabilities for Various Equipment in North America” (https://xueqiu.com/S/SZ002353)
[5] Yicai - “Orders Scheduled Until 3 Years Later! AI Data Centers Ignite Global Gas Turbine Demand, Chinese Industry Chain Enterprises Share the Spoils” (https://www.yicai.com/news/102921508.html)
[6] Eastmoney.com - “U.S. Power Shortage Series: Gas Turbine Industry Chain Sorting” (https://caifuhao.eastmoney.com/news/20251106150307465222840)