The Lyon Research Report indicates that China has announced the construction of the Yarlung Tsangpo River Dam on the Tibetan Plateau, with a planned power generation capacity of 300 billion kilowatt-hours, equivalent to three times that of the Three Gorges Dam. The project is expected to have an investment amount of 1.2 trillion yuan (the same below), and the bank estimates it will drive an annual equipment demand of 15 to 20 billion yuan, accounting for a 2 to 3% growth in the 600 billion yuan construction machinery market size.

The bank stated that although a single project has historically struggled to sustain the development of the machinery industry, considering that the current industry is in a recovery phase, coupled with rising replacement demand and a low sales base last year, it is expected that the commencement of this unprecedented dam project will provide clearer growth momentum for machinery stocks. The bank currently gives NARI-TECH (600406.SH) a target price of 27 yuan, and JSHL (601100.SH) a target price of 87 yuan, both rated as "outperform the market."