According to the Credit Suisse Research report, the National Energy Administration recently released relevant documents on the medium-and long-term Development Plan of pumped Storage (2021-2035), reiterating that the total scale of pumped storage production will reach 62GW by 2025, nearly double that of 32GW in 2020. Credit Suisse points out that 1072.HK, which has about 40 per cent of the market share in the pumped storage equipment industry, is expected to be the main beneficiary of policy, and industry demand is expected to increase significantly in the next few years, from 9GW in 2016-2020 to 30GW in 2021-2025 and further to 58GW in 2026-2030. The bank expects the pumped storage business to contribute about 12 to 16 per cent of Dongfang Electric's gross profit from 2022 to 2023 and raised its earnings per share forecast for the period by 19 per cent to 24 per cent, raising its target price from HK $12 to HK $16, taking into account the strong backlog of orders. even if the share price rises recently, the valuation is still attractive and the "outperform" rating is maintained.