According to the Zhitong Finance APP, Everbright Securities released a research report stating that the Yarlung Tsangpo River downstream hydropower project has officially commenced construction. Considering the advancements in water conservancy engineering technology in China in recent years, assuming a construction period of 15-20 years for the Yarlung Tsangpo River downstream hydropower project, the annual investment is expected to be between 60 billion to 80 billion yuan. In terms of the investment structure of the hydropower project, permanent construction works account for approximately 32% to 45%; electromechanical equipment procurement and installation costs account for about 18% to 25%; temporary project investments account for about 15% to 20%; and costs related to resettlement and reservoir submergence losses, along with other expenses, account for approximately 10% to 35%. Under the cascade development, the construction of the Yarlung Tsangpo River downstream hydropower station is expected to bring substantial construction engineering, building materials, and equipment orders for a long time to come.
<h2>The main points of Everbright Securities are as follows:</h2>
The Yarlung Tsangpo River downstream hydropower station has officially started construction, with a total investment of approximately 1.2 trillion yuan.
The hydropower resources in Tibet are mainly concentrated in the mainstream of the Yarlung Tsangpo River, Nu River, Lancang River, and Jinsha River. Among them, the Yarlung Tsangpo River basin has the richest hydropower resources, with a theoretical reserve of nearly 80 million kilowatts. The Yarlung Tsangpo River downstream hydropower project is located in Nyingchi City, Tibet Autonomous Region, and mainly adopts the development method of straightening bends and tunnel water diversion, constructing five cascade power stations. Cascade development allows the tailwater from the upper-level reservoir after power generation to flow into the next level for further power generation, enabling a single flow of water to be converted into electrical energy multiple times, thereby improving power generation efficiency through effective coordination.
The total investment for the Yarlung Tsangpo River downstream hydropower project is approximately 1.2 trillion yuan. According to the &#34;2023 Annual Report on the Management of Renewable Energy Project Costs in China&#34; released by the Planning and Design Institute of Water Resources and Hydropower, the average cost of approved hydropower projects in 2023 is 20,344 yuan/kW. Based on this, the installed capacity of the Yarlung Tsangpo River downstream hydropower project is expected to be 60 million kilowatts.
The total investment is about six times that of the Three Gorges Project, expected to bring substantial construction and material orders.
Currently, the largest water conservancy hub project in the world is the Three Gorges Project. According to data from the National Audit Office, the total investment of the Three Gorges Project is 207.2 billion yuan. The Three Gorges Project was constructed in three phases and officially commenced on December 14, 1994; the main dam construction was completed on May 20, 2006, and the last hydropower unit was put into operation on July 4, 2012.
The total investment of the Yarlung Tsangpo River downstream hydropower project is approximately six times that of the Three Gorges Project. Considering the advancements in water conservancy engineering technology in China in recent years, assuming a construction period of 15-20 years for the Yarlung Tsangpo River downstream hydropower project, the annual investment is expected to be between 60 billion to 80 billion yuan. In terms of the investment structure of the hydropower project, permanent construction works account for approximately 32% to 45%; electromechanical equipment procurement and installation costs account for about 18% to 25%; temporary project investments account for about 15% to 20%; and costs related to resettlement and reservoir submergence losses, along with other expenses, account for approximately 10% to 35%. Under the cascade development, the construction of the Yarlung Tsangpo River downstream hydropower station is expected to bring substantial construction engineering, building materials, and equipment orders for a long time to come.
Major engineering projects are gradually starting construction, which will effectively boost the growth rate of infrastructure investment.
In the first half of 2025, the construction of &#34;two heavy&#34; projects in China has been steadily advanced, with infrastructure investment in the first half of the year increasing by 4.6% year-on-year, 1.8 percentage points higher than the overall investment growth rate, contributing 1.0 percentage points to the overall investment growth. In the next phase, China will deepen the promotion of &#34;two heavy&#34; construction and &#34;two new&#34; work. At the press conference held by the State Council Information Office on July 9, 2025, the National Development and Reform Commission also stated that the 102 major projects in the &#34;14th Five-Year Plan&#34; have made significant progress and achievements, and it is expected that all planning goals will be completed by the end of the year. The hydropower development of the Yarlung Tsangpo River downstream, as a major project of China's &#34;14th Five-Year Plan,&#34; has secured funding, and the gradual advancement of the project will effectively boost the growth rate of China's infrastructure investment.
Target Aspects
The official commencement of the Yarlung River Hydropower Station is expected to bring substantial orders. It is recommended to pay attention to: POWERCHINA Ltd (601669.SH) (hydropower construction), China Energy Engineering Group (601868.SH) (hydropower construction), GZMB (002827.SZ) (Tibet blasting company), Tibet Tianlu (600326.SH) (Tibet cement leader), HUAXIN CEMENT (600801.SH) (cement leading enterprise), and CRCHI (688425.SH) (domestic tunnel boring machine leader), etc.
Risk Analysis
Project construction may fall short of expectations, and funding may not be in place as anticipated

688425

600801

06655

601669

002827

Everbright Securities released a research report stating that the downstream hydropower station of the Yarlung Tsangpo River has officially started construction, which is expected to bring substantial construction engineering and material orders in the future. The total investment for the project is approximately 1.2 trillion yuan, with a construction period of 15-20 years, and an estimated annual investment of 60-80 billion yuan. The Yarlung Tsangpo River basin is rich in hydropower resources, and the project will build five stepped power stations to improve power generation efficiency

Zhitong

CRCHI

Huaxin Building Materials

HX BLDG MAT

POWERCHINA Ltd

GZMB

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