Analysis of Investment Opportunities for Power Equipment Manufacturers Amid Supply Chain Bottlenecks in North American Natural Gas Power Plants — Jereh Corporation (002353.SZ)

The North American power equipment supply chain is facing unprecedented pressure. According to recent reports, the construction of natural gas power plants is facing severe challenges —

[1]. This bottleneck is causing headaches for developers competing in the generative AI boom.

Wood Mackenzie’s research shows that

due to manufacturing constraints, rising costs, and competition from renewable energy sources [2]. Energy research firms note that these factors will have a long-term impact on the supply-demand balance of the gas turbine market.

U.S. utilities have committed to adding

, but actual annual production capacity is only , creating a severe supply-demand mismatch [1]. This gap has further widened amid the rapid growth of AI data centers.

According to a WSJ report,

[3]. Traditional power companies are trying to increase supply, but meeting the surge in demand is neither easy nor quick to achieve.

With the rapid development of AI, cloud computing, and machine learning,

, projected to grow from 175MW in 2025 to 375MW in 2035 over the next decade [1].

SOFC fuel cells are emerging as an alternative power source for data centers, as traditional power grids struggle to fully keep up with the rapid growth in demand in terms of transmission and construction [1]. It is estimated that

, with average daily capital expenditure reaching $800 million in 2024. However, the global data center vacancy rate is only 3% (near zero in popular markets), and large-scale power additions are unlikely before 2028, leading to a significant gap [2].

Musk’s AI data center project in Memphis highlights this challenge. The data center

[1]. Natural gas turbines powering the data center pose pollution issues, but this seems like a necessary evil in the AI race.

According to the latest data, Jereh Corporation (002353.SZ) has delivered outstanding performance:

• Market Capitalization
  : $71.89 billion
• Current Stock Price
  : $71.00
• Annual Performance
  : The stock price has risen 108.95% year-to-date and 136.27% over three years [0]
• Financial Health
  : P/E ratio of 25.63x, ROE of 13.06%, net profit margin of 18.04% [0]
• Liquidity
  : Current ratio of 2.52 and quick ratio of 1.92, indicating strong short-term solvency [0]

From a technical analysis perspective, Jereh’s stock price has performed strongly over the past 60 trading days:

• Period Return
  : +45.62% (from $48.75 to $70.99)
• Price Range
  : $47.45-$77.77
• Moving Averages
  : 20-day MA at $62.72, 50-day MA at $56.43 [0]
• Trading Volume
  : Average daily volume of 14.48 million shares, indicating good liquidity [0]

While the search results show limited information about Jereh Corporation, based on its background as an oilfield services group and the current market environment of power equipment shortages, Jereh has potential opportunities in the following areas:

1. Natural Gas Power Generation Equipment Manufacturing
   : As an energy equipment service provider, it has the technical foundation to expand into the natural gas power generation equipment sector
2. Supply Chain Advantages
   : Amid global supply chain disruptions, it has relatively stable supply chain management capabilities
3. Data Center Backup Power
   : Potential to provide natural gas power generation solutions for data centers

1. Long-term Supply-Demand Mismatch
   : Extended lead times for gas turbines and transformers create long-term market opportunities
2. AI Data Center Demand
   : Power demand growth driven by AI computing needs will continue for many years
3. Policy Support
   : The U.S. Department of Energy has delayed the retirement of coal and natural gas power plants and issued reliability directives [3]
4. Capital Investment
   : Deloitte estimates that the U.S. power sector will need $1.4 trillion in new capital between 2025 and 2030 [3]

1. Supply Chain Uncertainty
   : While opportunities exist, supply chain bottlenecks themselves are also risk factors
2. Increased Competition
   : More companies may enter this field, intensifying competition
3. Technological Changes
   : Rapid development of renewable energy and energy storage technologies may change the demand landscape
4. Regulatory Risks
   : Environmental regulations may impact demand for natural gas power generation equipment

Based on the current market environment and Jereh’s fundamental performance:

1. Short-term Focus
   : Leverage the strong technical momentum and watch for opportunities to break through the previous high of $77.77
2. Mid-to-long-term Layout
   : Monitor the company’s business expansion in natural gas power generation equipment and data center power supply solutions
3. Risk Control
   : Given supply chain and regulatory risks, it is recommended to allocate moderately rather than overweight

As a financially healthy energy equipment service provider with strong technical capabilities, Jereh has the potential to benefit from the current supply chain bottlenecks in North American power equipment and surging power demand from AI data centers. However, investors need to closely monitor the specific progress of the company’s business transformation and changes in the market environment.

[0] Jinling API Data
[1] WSJ - “U.S. AI Race Urgently Needs Power, But Key Equipment Is Both Scarce and Expensive” (https://cn.wsj.com/articles/u-s-needs-more-power-for-aibut-critical-equipment-is-pricey-and-scarce-47bec4ee)
[2] Yahoo Finance - “SOFC Fuel Cells Become Alternative Power Solution for Data Centers: Colliers, Zhongxing Electric” (https://hk.finance.yahoo.com/news/sofc燃料電池成為資料中心電力替代方案-高力-中興電-133004487.html)
[3] Forbes - “Is The U.S. Headed For A Power Grid Crisis?” (https://www.forbes.com/sites/rrapier/2025/09/07/is-the-us-headed-for-a-power-grid-crisis/)
[4] Yahoo Finance - “Wood Mackenzie sees challenges meeting gas power demand over …” (https://finance.yahoo.com/news/wood-mackenzie-sees-challenges-meeting-182957388.html)
[5] WSJ - “AI Data Centers, Desperate for Electricity, Are Building …” (https://www.wsj.com/business/energy-oil/ai-data-centers-desperate-for-electricity-are-building-their-own-power-plants-291f5c81)