Core Insights - The new power system is characterized by cleanliness, efficiency, flexibility, and intelligence, aiming to meet the energy development needs of the economy while ensuring power security [1][9] - The development and utilization of the new power system are accelerating the green and low-carbon transformation of energy, ensuring efficient and stable power supply [1][9] - By 2024, the market size of China's new power system industry is expected to reach approximately 1.26 trillion yuan [1][10] Industry Overview - The new power system is a comprehensive energy system dominated by renewable energy, covering generation, transmission, transformation, distribution, sale, and consumption [3] - It emphasizes the coexistence of centralized and distributed energy models, with a focus on renewable energy sources such as wind and solar [3] - The system consists of four core parts: generation side, grid side, user side, and storage side, with renewable energy leading the generation side [3] Development Strategy - The new power system's development is divided into three phases: acceleration phase (current to 2030), overall formation phase (2030 to 2045), and consolidation phase (2045 to 2060) [4][5] Policy Framework - The construction of the new power system is a significant measure to implement national strategies for carbon neutrality and energy transformation [5] - Various policies have been introduced to support the development of the new power system, including action plans and market reforms for renewable energy [5] Industry Chain - The upstream of the new power system industry chain includes wind, solar, hydro, and hydrogen power generation [5] - The midstream consists of the new power system itself, while the downstream includes applications in industrial, commercial, residential, and electric vehicle sectors [5] Investment Trends - The investment in China's grid engineering is steadily increasing, with a projected completion amount of 608.3 billion yuan in 2024, representing a year-on-year growth of 15.32% [5][6] - The investment in grid engineering for the first seven months of 2025 reached 331.5 billion yuan, up 12.49% year-on-year [5] Market Dynamics - The competition in the new power system industry is intensifying, with traditional power companies actively transforming and new enterprises entering the market [11] - Key players in the industry include Guodian NARI, China XD Electric, Pinggao Electric, and others [2][11] Technological Challenges - The new power system faces challenges related to the adequacy of resources, safety, and economic efficiency, particularly with the high proportion of renewable energy and power electronic devices [17][18][19] Future Trends - The future of the new power system will focus on intelligence, green transformation, and collaborative mechanisms to ensure stable and efficient operation [18][19][20]

Overview - The report provides a comprehensive analysis of the global and Chinese power transmission and distribution equipment industry, including market trends, technological advancements, and competitive landscape [2][3][4]. Industry Definition and Classification - Power transmission and distribution equipment is defined and differentiated from similar concepts, with a clear classification of the industry [3][4]. - The report outlines the regulatory framework and standard systems governing the industry in China [3][4]. Global Industry Development - The global power transmission and distribution equipment industry has a rich development history, with current technological and supply-demand conditions analyzed [4][5]. - The competitive landscape includes insights into mergers and acquisitions within the industry [4][5]. Market Size and Trends - The report estimates the market size of the global power transmission and distribution equipment industry and provides forecasts for the next five years [4][5]. - Key trends include technological advancements and shifts in market demand [4][5]. Chinese Industry Analysis - The development history and technological progress of the Chinese power transmission and distribution equipment industry are detailed, including research and innovation efforts [5][6]. - The report discusses the import and export statistics of power transmission and distribution equipment, highlighting trade dynamics [5][6]. Market Participants - An analysis of market participants includes types of companies, their entry strategies, and the distribution of registered enterprises across regions [5][6]. - The report also examines the bidding market for power transmission and distribution equipment in China, including key players and their bidding behaviors [5][6]. Competitive Landscape - The competitive dynamics of the Chinese power transmission and distribution equipment industry are analyzed, including market concentration and competitive clusters [6][7]. - The report employs Porter's Five Forces model to assess the competitive environment [6][7]. Investment and Financing - The report outlines the investment landscape, including sources of funding, investment trends, and notable financing events in the industry [6][7]. - Mergers and acquisitions are discussed, highlighting motivations and significant case studies [6][7]. Supply Chain and Cost Structure - The structure of the power transmission and distribution equipment industry supply chain is mapped out, along with an analysis of cost components [7][8]. - The report examines the market for raw materials essential to the industry, such as silicon steel and copper [7][8]. Product Market Analysis - The report provides insights into various segments of the power transmission and distribution equipment market, including transformers, switchgear, capacitors, and more [8][9]. - Trends in product development, such as miniaturization and increased reliability, are highlighted [8][9]. Application Market Analysis - The report analyzes application scenarios and market distribution for power transmission and distribution equipment, including power grid construction and renewable energy integration [9][10]. - Specific sectors such as rail transportation and automotive manufacturing are examined for their demand for power transmission and distribution equipment [9][10]. SWOT Analysis - A SWOT analysis of the Chinese power transmission and distribution equipment industry identifies strengths, weaknesses, opportunities, and threats [17][18]. - The report discusses the macroeconomic environment, social factors, and policy impacts on the industry [17][18]. Future Outlook - The report forecasts the future development potential of the Chinese power transmission and distribution equipment industry, identifying key growth areas and trends [18][19]. - It emphasizes the importance of technological innovation and market adaptation in shaping the industry's future [18][19].

Core Insights - The demand for electric vehicle charging surged during the holiday period, with the State Grid's smart vehicle networking platform reporting a record charging volume exceeding 10 million kilowatt-hours on the first day of the holiday, marking an 18% year-on-year increase [7]. Group 1: Charging Infrastructure Enhancements - Various localities implemented flexible measures to ensure smooth charging for electric vehicle owners, including the installation of temporary mobile charging stations and additional fast-charging points at service areas [1]. - In Zhejiang, the local power department doubled the number of operational staff to monitor and assist with the 20 charging stations, ensuring a better charging experience for vehicle owners [3]. - The power departments across regions increased the application of digital platforms to optimize charging station usage, such as a capacity assessment platform in Anhui that analyzes charging demand every 15 minutes [5]. Group 2: Strategic Resource Allocation - In Jiangsu, the power department relocated 40 underutilized charging stations to high-traffic areas and tourist attractions to facilitate quicker charging for vehicle owners during the holiday [8]. - The smart vehicle networking platform is capable of real-time monitoring of over 700 charging stations, allowing for immediate notifications to maintenance staff in case of charging failures [8]. Group 3: Notable Charging Stations - The highest number of charging sessions occurred at specific stations, including the liquid-cooled supercharging station at the Jian De service area on the Hangqian Expressway and the second phase of the charging station at Ouyang Hai service area in Chenzhou [10].

Core Viewpoint - The stock of Guodian NARI has shown a slight increase recently, with a notable net inflow of funds, despite a year-to-date decline in share price [1][2]. Financial Performance - For the first half of 2025, Guodian NARI reported a revenue of 24.243 billion yuan, representing a year-on-year growth of 20.53% [2]. - The net profit attributable to shareholders for the same period was 2.952 billion yuan, reflecting an 8.97% increase compared to the previous year [2]. Stock Market Activity - As of September 30, Guodian NARI's stock price was 23.00 yuan per share, with a trading volume of 843 million yuan and a market capitalization of 184.738 billion yuan [1]. - The stock has experienced a year-to-date decline of 6.66%, but has seen a recent uptick of 3.73% over the last five trading days [1]. Shareholder Information - As of June 30, the number of shareholders for Guodian NARI was 100,400, a decrease of 8.75% from the previous period [2]. - The average number of circulating shares per shareholder increased by 9.59% to 79,622 shares [2]. Dividend Distribution - Guodian NARI has cumulatively distributed 24.308 billion yuan in dividends since its A-share listing, with 12.674 billion yuan distributed over the last three years [3]. Institutional Holdings - As of June 30, the second-largest circulating shareholder was Hong Kong Central Clearing Limited, holding 1.089 billion shares, a decrease of 27.4801 million shares from the previous period [3]. - Other notable institutional shareholders include various ETFs, which have seen increases in their holdings [3].

Core Viewpoint - JPMorgan has upgraded the rating of State Grid NARI Technology Co., Ltd. to "overweight" [1] Group 1 - The upgrade reflects positive expectations for the company's future performance and market position [1]

Core Viewpoint - JPMorgan has upgraded the rating of Guodian NARI to "overweight" [1] Company Summary - The upgrade reflects positive sentiment towards Guodian NARI's future performance and potential growth [1]

Group 1 - The ITU-T international standard titled "IoT-based Photovoltaic Energy Storage Collaborative Control Framework" has been officially approved, marking a significant milestone in the field of photovoltaic energy storage collaborative control [1][2] - The standard addresses challenges faced by traditional photovoltaic systems, such as low operational efficiency, high labor costs, and yield fluctuations due to environmental changes, by defining a framework that maximizes photovoltaic utilization, enhances flexibility, and reduces operational and maintenance costs [2][4] - The standard was developed by NARI Technology Co., a subsidiary of NARI Group, with guidance from the Technical Standards Center, and received high recognition from ITU-T member countries and international experts during the meeting [2][4] Group 2 - NARI Group is actively involved in areas such as virtual power plant agency, distributed photovoltaic monitoring, energy storage optimization, and smart energy operation, with the new standard aimed at reducing operational costs and improving economic and safety metrics for users [4] - The integration of the standard with NARI's engineering practices demonstrates a high degree of compatibility, providing a technically advanced and effective Chinese solution for global smart photovoltaic energy storage collaborative construction [4][8] - NARI plans to continue strengthening its international standard layout and core standard development, promoting standard innovation to empower industry growth, while also focusing on cultivating international standardization talent to enhance its global influence and industry voice [8]

Investment Rating - The report maintains an "Overweight" rating for the Electric Equipment and New Energy sector and the Public Utilities sector [1][4]. Core Views - The report highlights China's new carbon reduction targets announced by President Xi Jinping, aiming for a 7%-10% reduction in greenhouse gas emissions by 2035, with non-fossil energy consumption exceeding 30% of total energy consumption [8][10]. - The transition from the "peak" phase to the "decline" phase in carbon emissions is emphasized, indicating a clear path towards carbon neutrality [8][10]. - The report identifies key beneficiaries in the energy transition, including leaders in the energy storage industry and companies like Sany Heavy Energy and Guodian NARI [8][11]. Summary by Sections Investment Recommendations - Sany Heavy Energy (688349 CH) is rated "Buy" with a target price of 38.01 CNY, reflecting a significant growth potential [4][15]. - Guodian NARI (600406 CH) is also rated "Buy" with a target price of 26.00 CNY, supported by its strong market position in secondary equipment [4][15]. Market Outlook - The report anticipates that by 2030, the cost parity of solar and storage will unlock new capacity for renewable energy installations, with a projected increase in installed capacity to 6,816 GW by 2035 [12][14]. - The need for a higher electrification rate and increased green energy proportion is highlighted to meet the carbon reduction targets without sacrificing energy consumption [11][12]. Company Performance - Sany Heavy Energy reported a revenue of 8.594 billion CNY for H1 2025, a year-on-year increase of 62.75%, with a significant improvement in profitability expected due to higher-margin product sales [16][17]. - Guodian NARI achieved a revenue of 15.348 billion CNY in Q2 2025, reflecting a year-on-year growth of 22.50%, indicating robust demand in the new power system construction [17][18].

Investment Rating - The report maintains an "Overweight" rating for the power equipment and new energy industry [2] Core Insights - The energy storage system bidding scale in August 2025 saw a month-on-month increase of over 10 times, reaching 17.7GW/45.7GWh, marking a year-on-year growth of 237.1% and 691.4% respectively [5][39] - The power equipment sector has outperformed the CSI 300 index, with a year-to-date increase of 38.91%, surpassing the index by 22.18 percentage points [12][18] - The report highlights significant growth in the grid-side energy storage system, which reached a bidding scale of 18.2GWh in August, reflecting a year-on-year increase of 437.2% and a month-on-month increase of 521.9% [40] Summary by Sections Market Review - As of September 25, 2025, the power equipment industry rose by 8.19% over the past two weeks, outperforming the CSI 300 index by 7.19 percentage points, ranking second among 31 industries [12] - The wind power equipment sector increased by 8.31%, while the battery sector saw a rise of 12.48% [18] Valuation and Industry Data - The power equipment sector's PE (TTM) is 34.90 times, with sub-sectors like the motor sector at 67.83 times and the battery sector at 37.26 times [25] - The report provides detailed valuation metrics for various sub-sectors, indicating a significant premium over historical averages [25] Industry News - The report notes China's commitment to reducing greenhouse gas emissions and increasing the share of non-fossil energy consumption to over 30% by 2035 [39] - It emphasizes the government's push for large-scale applications of energy storage equipment, focusing on safety and efficiency [39] Company Announcements - The report includes announcements from companies like Datang Group regarding a major offshore wind power project and various corporate actions from firms like Goldwind Technology and Longi Green Energy [42][43] Weekly Perspective - The report suggests focusing on leading inverter companies benefiting from the development of new energy storage technologies, highlighting specific companies such as Guodian NARI and Sunshine Power [44]

Core Insights - Over 70% of China's energy state-owned enterprises have integrated Alibaba's AI technology, including major players like State Grid, Southern Power Grid, Sinopec, and others, across the entire energy spectrum [1] - The energy sector is under strict technological selection requirements due to "energy security" and "dual carbon" goals, leading to a preference for Alibaba Cloud's full-stack AI capabilities [1] - The State Grid has launched the "Bright Power Model," a comprehensive multimodal industry model supported by Alibaba, which has achieved the highest professional capability rating [1] Group 1: Electricity Sector - State Grid and Southern Power Grid are leveraging AI to address challenges in grid stability caused by large-scale integration of renewable energy [1] - The "Bright Power Model" is recognized as the most comprehensive and capable model in the electricity sector, providing support for safe and stable grid operations [1] - The model's professional capability exceeds that of mainstream models by an average of 15% [1] Group 2: Metering and Automation - Southern Power Grid has upgraded its metering automation system to a leading "Metering Brain," enhancing efficiency and fault recovery rates [3] - The AI Commander developed in collaboration with Alibaba integrates multiple AI functions, resulting in an 8-fold increase in work order processing efficiency and an 80% self-healing rate for faults [3] Group 3: Oil and Gas Sector - The National Pipeline Group has built an open service and trading platform for over 50,000 kilometers of oil and gas pipelines, utilizing Alibaba's AI technology [5] - The platform has improved demand submission efficiency by 60% and enables rapid response for urgent resource allocation [5] Group 4: Coal Industry - China Coal Technology and Engineering Group has integrated AI models into its operations, enhancing decision-making for intelligent mining and disaster prevention [5] - A strategic cooperation agreement has been signed with Alibaba Cloud to develop an AI foundation platform for the coal industry [5] Group 5: Industry Recognition - The choice of Alibaba AI by energy state-owned enterprises reflects recognition of Alibaba Cloud's full-stack AI capabilities [7] - The goal of digital transformation in the energy sector is to achieve greater safety, stability, lower carbon emissions, and higher efficiency [7]