Orient Securities Company Limited has released a research report indicating a significant breakthrough in overseas orders for domestically produced gas turbines in China. The report suggests that the global expansion of Chinese gas turbines could become a major new driver of demand for the aviation and aerospace engine supply chain.
The brokerage believes that market confidence in the international competitiveness of Chinese-made gas turbines was previously insufficient. However, a steady stream of secured overseas orders is expected to catalyze a significant shift in market expectations. While the initial focus is on volume growth, the logic of price appreciation, once it begins to play out, is anticipated to be reflected more swiftly and noticeably in corporate financial performance. The report recommends focusing on segments closest to end customers and those with the most significant capacity bottlenecks, specifically highlighting gas turbine OEMs/gas generator manufacturers and key component/raw material suppliers.
The key viewpoints from Orient Securities Company Limited are as follows:
An event on June 3rd saw the official WeChat account of China Shipbuilding 703 Institute announce that Harbin Guanghan Gas Turbine Co., Ltd. has secured orders exceeding 100 units for its domestic gas turbine models. With a comprehensive product portfolio and strong technical capabilities, Guanghan Gas Turbine is poised to lead the accelerated global market expansion for Chinese gas turbines.
Guanghan Gas Turbine has long focused on the 3-50MW small and medium-sized gas turbine sector, serving clients in domestic and international oil & gas, data centers, and traditional industrial power generation. Its CGT series turbines have been deployed in various applications, including long-distance natural gas pipelines and offshore platforms. The CGT30 and CGT40 models boast single-unit efficiency nearing 40%, reaching advanced levels for their power class. The H25 series gas turbines are widely used in industrial combined-cycle power generation and cogeneration projects, achieving a comprehensive energy utilization rate exceeding 90%.
The brokerage views this order breakthrough, exemplified by Guanghan Gas Turbine, as a critical milestone. It marks the transition of China's small and medium-sized gas turbines from prototype development and small-batch trials to scaled, commercial mass production, validating the maturity of the entire independent supply chain and formally integrating Chinese gas turbines into the global supply system. Furthermore, as production scales up, it will drive continuous process improvements and cost reductions for domestic manufacturers. Leveraging operational data from large-scale installations will allow for ongoing optimization of energy efficiency and reliability, accelerating the pace of catching up to international advanced standards and further enhancing the global competitiveness of Chinese gas turbines.
In recent years, Chinese gas turbines have achieved overseas sales breakthroughs across multiple sectors. Their global expansion is expected to become a significant new source of demand pull for the aviation and aerospace engine industry chain.
In November 2025, a groundbreaking ceremony was held for a 50-megawatt combined-cycle power project in Kazakhstan, marking the official overseas deployment of three 50MW heavy-duty gas turbines independently developed by Dongfang Electric Corporation. This represents the first international venture for China's independently developed F-class gas turbines.
In March 2026, Han-Chen Elite procured five "Taihang 7" gas turbines from AECC Gas Turbine Co., Ltd. to serve as core power equipment for a Floating Production Storage and Offloading (FPSO) vessel operated by Petronas of Malaysia. The selection of the "Taihang 7" for this project demonstrates recognition and confidence in China's high-end power equipment and marks the domestic gas turbine industry's first entry into the international high-end FPSO market.
In April 2026, Jereh Group disclosed that it had signed four gas turbine generator set sales contracts with four different clients in the United States year-to-date, with a cumulative contract value exceeding $900 million.
The brokerage observes that against the backdrop of a persistently tight global gas turbine market and proactive efforts by leading Chinese manufacturers to explore overseas markets, excellent domestic companies represented by the 703 Institute, AECC Gas Turbine, and Dongfang Electric are formally expanding internationally. This signifies a crucial leap from "domestic application" to "international export." The report reiterates that while prior market confidence in this出海 trend was tepid, the continuous acquisition of overseas orders is set to drive a material change in expectations.
With the global gas turbine supply gap narrowing, prices are rising accordingly. Wood Mackenzie forecasts that gas turbine market prices will reach $600/KW by the end of 2027, a 195% increase from 2019 levels.
The brokerage posits that China's gas turbine industry is currently in a nascent development phase. Therefore, in the short term, component suppliers are primarily focused on covering downstream models and part numbers, while OEMs concentrate on acquiring customers across different regions and application scenarios, aligning with a volume-driven logic. However, as these firms gradually establish a foothold in the global market, the report believes the price increases seen in the international gas turbine supply chain will also extend to the domestic Chinese chain. Moreover, compared to the volume narrative, the price appreciation logic, once it unfolds, is expected to be reflected more rapidly and visibly in corporate financial statements. Investors are advised to monitor segments that are closest to the end customer and those facing the most severe capacity constraints.
Risk factors include market demand falling short of expectations and capacity expansion proceeding slower than anticipated.