1、Europe Equity Research01 September 2025J P M O R G A NSiemens EnergyPeer MHI aims to double gas turbine capacity in the next two yearsNeutralENR1n.DE,ENR GRPrice(29 Aug 25):90.32Price Target(Dec-26):91.50European Capital GoodsAkash Gupta AC(44-20)7742-J.P.Morgan Securities plcPhil Buller(44-20)3493-

2、J.P.Morgan Securities plcLushanthan Mahendrarajah,CFA(44-20)3493-J.P.Morgan Securities plcChitrita C Sinha(44-20)7742-J.P.Morgan Securities plcJeremy Caspar(44-20)3493-J.P.Morgan Securities plcRam S Mehta(91-22)6157-J.P.Morgan India Private LimitedSpecialist Sales contact details:Sam Edmunds-Special

3、ist Sales-European Industrials(44-20)7742-One of the key debates on Siemens Energy(ENR)is the need for further capacity increase to meet demand,where it has previously indicated raising capacity by 30%for large GTs(similar to its US peer GE Vernova),but industrywide,gas turbine orders in H1 alone ca

4、me in above the average annual orders during 2016-2023 period,suggesting the need for further capacity expansion if demand stays or exceeds current run-rate.The large supply-demand gap over the past 18 months has given ENR strong pricing power,which has helped in the re-rating of the stock.While any

5、 further capacity expansion by ENR will support revenue growth,there is a risk that a more balanced supply demand could change the pricing dynamics.Against this backdrop,it was noteworthy to see that ENRs Japanese peer Mitsubishi Heavy Industries(MHI,not covered)is aiming to double its gas turbine c

6、apacity in the next two years,Bloomberg News reported.While such a move could lead to concerns about pricing in the future,it could also indicate that underlying demand may be stronger than what was reported by McCoy last month(which captures an order only after it is firm).After the capacity commen