Core Viewpoint - The high-voltage power equipment sector is experiencing significant activity, with multiple stocks reaching their daily limit up due to increased investment and demand in the domestic power grid sector [1][2]. Group 1: Market Activity - Six stocks in the high-voltage equipment sector hit the daily limit up, including Electric Power Research Institute, Han Cable, Senyuan Electric, Dalian Electric Porcelain, Jicheng Electronics, and Fengfan [1]. - Electric Power Research Institute saw a rise of over 14%, while other companies like Han Cable and Senyuan Electric increased by over 10% [2]. Group 2: Industry Trends - The core logic behind the market speculation is the overall improvement in the high-voltage industry, driven by a significant expansion in domestic power grid investment and breakthroughs in domestic core technologies [2][3]. - The State Grid Corporation of China has projected fixed asset investments to reach 4 trillion yuan during the 14th Five-Year Plan, a 40% increase from the previous plan, focusing on building a smarter and greener power grid [3][4]. Group 3: Technological Advancements - Recent developments include the successful trial operation of a domestically developed series of AC filter protection and converter protection devices by XJ Electric, marking a significant technological breakthrough in the high-voltage sector [3]. - The global transformer market is facing a notable supply shortage, with North America experiencing a 30% gap, which presents growth opportunities for domestic companies in the export market [4]. Group 4: Investment Recommendations - Citic Securities recommends focusing on leading domestic power equipment companies closely related to the investment climate in the domestic power grid and major projects like high-voltage and flexible DC [4].

Core Viewpoint - The A-share power grid equipment sector has experienced a significant rally, driven by multiple factors including policy support, expanding demand, and technological advancements [1][2]. Policy Support - The National Grid announced a fixed asset investment of 4 trillion yuan during the 14th Five-Year Plan, representing a 40% increase compared to the previous plan, equating to an average annual investment of 800 billion yuan [2]. - The investment from the Southern Power Grid is expected to push the national average annual fixed asset investment to over 1 trillion yuan during the 14th Five-Year Plan [3]. Market Demand - The increasing share of renewable energy installations necessitates upgrades to the power grid to address issues like "abandoning wind and solar" and ensure stable electricity delivery [2]. - The explosion in AI computing power is creating new electricity consumption demands, with the International Energy Agency predicting that global data center electricity consumption will double by 2030, benefiting the power grid equipment sector [2]. Technological Advancements - Innovations such as solid-state transformers and flexible DC transmission are accelerating the industry's transition from traditional manufacturing to high-end intelligent manufacturing, with a critical validation phase expected by 2026 [2]. - The industry is projected to exceed a market size of 2 trillion yuan by 2025, characterized by steady overall growth and increasing structural differentiation [2]. Industry Outlook - Leading companies with technological expertise and strong order reserves are expected to maintain stable performance and competitive advantages, with stocks like TBEA and China XD Electric likely to reach new highs by 2025 [2]. - Key growth areas include ultra-high voltage, digitalization of the power grid, and equipment exports, with companies such as Sifang Co., TBEA, and China XD Electric poised to benefit from these trends [3].

Group 1 - Guodian NARI (600406) is a state-owned enterprise based in Nanjing, recognized as a benchmark for scientific reform among central enterprises, with a strong research and development system and significant achievements in grid technology [1] - The company has a market share of over 75% in dispatch automation systems and over 50% in UHV converter valves, with its products addressing grid stability issues caused by renewable energy generation [1] - The demand for AI computing power and electricity is driving the construction of new power systems, and the company is expanding its overseas business, exporting products like distribution transformers to multiple countries [1] Group 2 - Suyuan Electric (002028) is a comprehensive supplier of power transmission and distribution based in Shanghai, focusing on UHV and energy storage sectors, and is the largest manufacturer of high-voltage packages and coils in China [2] - The company expects 60% of its overseas revenue in 2024 to come from transformers, with overseas orders growing over 50% and a remarkable 89% growth in the first half of 2025 [2] - The surge in demand for high-voltage transmission and distribution equipment driven by AI computing centers and new energy projects presents significant growth opportunities for the company [2] Group 3 - China XD Electric (601179) is a state-owned enterprise based in Xi'an, specializing in high and ultra-high voltage transformers and power transmission and distribution equipment, capable of producing products across a voltage range of 10kV to 1000kV [3] - The company has a significant market share in UHV projects and has seen an increase in exports to Europe, with its technology reaching international advanced levels [3] - The demand for UHV technology is increasing due to the need for long-distance power transmission, and the company is well-positioned to meet both domestic and international market needs [3] Group 4 - Baobian Electric (600550) is a core supplier of UHV DC transformers based in Baoding, with a strong position in high-end transformers and a market share of 30% in UHV products [4] - The company has unique technologies that reduce material costs and has participated in major projects, exporting to over 40 countries [4] - The urgent demand for high-reliability transformers driven by AI computing centers and new energy power stations positions the company to benefit from both domestic and international projects [4] Group 5 - Jinpan Technology (688676) is a leading global manufacturer of dry-type transformers based in Haikou, focusing on wind and solar energy applications, with 98% of its products supporting renewable energy [5] - The company has a significant order backlog of 2.85 billion yuan for 2025, reflecting a substantial year-on-year growth of 180% [5] - The increasing demand for efficient dry-type transformers from AI computing centers and the proliferation of renewable energy generation presents a strong growth opportunity for the company [5] Group 6 - Mingyang Electric (301291) is a leader in offshore wind power transformers based in Zhongshan, specializing in dry-type transformers and prefabricated substations [6] - The company has developed products that meet the extreme conditions of offshore environments and is expected to achieve significant sales in North America by 2026 [6] - The growing demand for offshore wind power and the urgent need for grid upgrades in North America provide ample order support for the company [6] Group 7 - Teruid (300001) is a pioneer in outdoor box-type power equipment based in Qingdao, recognized as a champion enterprise in manufacturing [7] - The company has a complete technology system for modular prefabricated substations and has a leading market share in the new energy sector [7] - The demand for modular products from AI computing centers and the need for grid upgrades position the company to capture significant market growth [7] Group 8 - XJ Electric (000400) is a high-tech enterprise based in Xuchang, focusing on UHV and smart grid technologies, with a comprehensive industrial chain covering all aspects of power transmission and distribution [8] - The company has participated in all domestic UHV DC transmission projects and has a strong patent portfolio [8] - The growth in AI computing and electricity demand is accelerating the construction of smart grids, providing competitive advantages for the company [8] Group 9 - Sifang Co., Ltd. (601126) is based in Beijing and has a strong advantage in smart distribution networks, providing a full range of products for self-healing control and primary and secondary integration [9] - The company has implemented its products in over 30 provinces and cities, significantly improving efficiency in power distribution [9] - The demand for reliable power supply from AI computing centers and the ongoing digital transformation of distribution networks present broad development opportunities for the company [9] Group 10 - Samsung Medical (601567) is based in Ningbo and operates in both smart power distribution and medical services, covering a wide range of products in the power equipment sector [10] - The company has established manufacturing bases in multiple locations and has a marketing presence in over 70 countries [10] - The construction of AI computing centers and new energy projects requires substantial power distribution equipment, positioning the company to benefit from global demand growth [10]

Investment Rating - The report maintains a "Recommended" investment rating for the power equipment sector [6][17]. Core Viewpoints - The domestic data center industry is entering a new cycle of expansion and upgrades, with direct current (DC) power supply equipment expected to benefit first. The market size of China's data center industry is projected to exceed 318 billion yuan in 2025, representing a year-on-year growth of approximately 14.7%. By 2030, it may reach 1.2 trillion yuan, with a compound annual growth rate (CAGR) of about 25%-28% [5][15]. - The load scale of data centers is expected to be around 7.05 GW in 2025, increasing to 9.37 GW by 2030, with a CAGR of approximately 5.85%. The demand for AI computing power is driving significant capital expenditure from leading internet companies, with ByteDance planning to invest about 160 billion yuan in AI infrastructure in 2026, and Alibaba expecting to invest over 380 billion yuan in cloud and AI hardware from 2025 to 2027 [5][15]. - The industry is experiencing an unexpected expansion, with infrastructure technology upgrades creating investment opportunities in IDC-compatible DC power supply equipment [5][15]. Summary by Sections Investment Viewpoints - The report suggests focusing on the IDC sector, recommending companies such as Kehua Data and Jinpan Technology, as well as Sifang Co. and Liangxin Co. for their potential in the HVDC/SST industry. It also highlights the importance of high-voltage circuit breakers and suggests monitoring companies like Zhongheng Electric, Magmeter, and Oulu Tong in the power supply sector [6][16]. Key Companies and Profit Forecasts - The report includes profit forecasts for several companies, with notable mentions: - Kehua Data (002335.SZ): EPS forecast of 1.86 yuan for 2026, currently unrated [18]. - Liangxin Co. (002706.SZ): Rated "Buy" with an EPS forecast of 0.44 yuan for 2026 [19]. - Magmeter (002851.SZ): Rated "Buy" with an EPS forecast of 2.07 yuan for 2026 [19]. - Sunshine Power (300274.SZ): Rated "Buy" with an EPS forecast of 7.74 yuan for 2026 [19]. - Jinpan Technology (688676.SH): Rated "Buy" with an EPS forecast of 2.20 yuan for 2026 [19]. Market Performance - The power equipment sector saw a 5.02% increase last week, ranking 12th among 28 sub-industries, outperforming the Shanghai Composite Index by 1.21 percentage points [46].

Core Insights - The Ministry of Industry and Information Technology, along with four other departments, has issued the "Guidelines for the Construction and Application of Industrial Green Microgrids (2026-2030)" to promote the development and application of green microgrids in the industrial sector, aiming to enhance the use of green electricity and reduce carbon emissions in key industrial areas [1] Group 1: Industry Overview - In the past six months, 40 listed companies have disclosed their involvement in microgrid-related businesses through investor Q&A platforms or research activities, primarily in the power equipment sector with 19 companies [1] - Other sectors involved include machinery equipment, construction decoration, and telecommunications, with 4, 3, and 3 companies respectively [1] Group 2: Company Performance and Predictions - Among the concept stocks, 20 have received institutional ratings, with 10 stocks attracting significant attention from institutions, having ratings from five or more agencies [1] - According to consensus forecasts, 8 out of the 10 stocks are expected to achieve year-on-year growth in net profit attributable to shareholders by 2025, with Teruide (300001) projected to have the highest net profit growth rate of 30.4%, and Dongfang Electronics (000682) expected to increase by over 20% [1] Group 3: Stock Performance Data - The table lists various companies along with their stock performance on January 9, including: - Guodian Nari (600406) with a 0.55% increase and a projected net profit growth of 9.73% [2] - Weisheng Information (688100) with a 1.32% decrease and a projected growth of 14.97% [2] - Sifang Co. (601126) showing a 5.08% increase with a 17.98% growth forecast [2] - Teruide (300001) with a slight increase of 0.19% and a projected growth of 30.4% [2] - Dongfang Electronics (000682) with a 0.48% increase and a forecasted growth of 23.78% [2]

Group 1 - The State Intellectual Property Office of China granted a patent to Beijing Sifang Automation Co., Ltd. for a method and system for rapid operation of peripherals through flow device interfaces, with the authorization announcement number CN115658573B and application date of September 2022 [1] - Beijing Sifang Engineering Technology Co., Ltd., established in 2003, is primarily engaged in the manufacturing of electrical machinery and equipment, with a registered capital of 1.05 billion RMB. The company has invested in 5 enterprises, participated in 5,000 bidding projects, holds 904 patents, and has 13 administrative licenses [1] - Beijing Sifang Automation Co., Ltd., founded in 1994, focuses on the manufacturing of computers, communications, and other electronic devices, with a registered capital of 833.436 million RMB. The company has invested in 22 enterprises, participated in 5,000 bidding projects, holds 42 trademark registrations, 1,778 patents, and has 41 administrative licenses [1]

Group 1 - The core viewpoint of the news is that the microgrid sector is expected to experience steady growth due to favorable policies and increasing investments in green energy applications within industrial settings [2][4]. - The Ministry of Industry and Information Technology, along with four other departments, has released the "Guidelines for the Construction and Application of Industrial Green Microgrids (2026-2030)," which aims to promote the integration of renewable energy sources in industrial processes [2]. - The guidelines emphasize five basic principles, including efficient multi-energy utilization, high local consumption of renewable energy, and enhanced interaction with the power grid [2]. Group 2 - The global microgrid market is projected to reach approximately $22.9 billion in 2024, with a compound annual growth rate (CAGR) of about 19.2% from 2025 to 2034 [4]. - In China, the investment in power grid construction is on the rise, with a reported investment of 560.4 billion yuan from January to November 2025, marking a year-on-year increase of 5.9% [4]. - Recent data indicates that 40 listed companies have disclosed their involvement in microgrid-related businesses, primarily in the power equipment sector [5]. Group 3 - In the stock market, several microgrid-related stocks have shown positive performance, with notable increases in share prices for companies like Huizhong Technology and Sifang Co., with gains of 8.14% and 5.08%, respectively [6]. - Among the listed companies, 20 have received institutional ratings, with 10 stocks attracting significant attention from multiple rating agencies [6]. - Companies such as Teruid and Dongfang Electronics are expected to see substantial growth in net profits by 2025, with Teruid projected to achieve a growth rate of 30.4% [6][7].

Group 1 - The State Intellectual Property Office of China granted a patent to Beijing Sifang Automation Co., Ltd. for a method of developing a liquid crystal interface for remote devices, with the authorization announcement number CN113867664B and application date of September 2021 [1] - Beijing Sifang Engineering Technology Co., Ltd. was established in 2003, located in Beijing, primarily engaged in the manufacturing of electrical machinery and equipment, with a registered capital of 1.05 billion RMB [1] - The company has made investments in 5 enterprises, participated in 5,000 bidding projects, holds 904 patent records, and possesses 13 administrative licenses [1] Group 2 - Beijing Sifang Automation Co., Ltd. was founded in 1994, also located in Beijing, focusing on the manufacturing of computers, communications, and other electronic devices, with a registered capital of 833.436 million RMB [1] - The company has invested in 22 enterprises, participated in 5,000 bidding projects, has 42 trademark records, and holds 1,778 patent records, along with 41 administrative licenses [1]

Group 1 - The stock of Sifang Co., Ltd. increased by 5.04% on January 9, reaching a price of 32.69 yuan per share, with a trading volume of 253 million yuan and a turnover rate of 0.96%, resulting in a total market capitalization of 27.237 billion yuan [1] - Sifang Co., Ltd. specializes in the research, production, sales, and technical services of relay protection, grid automation, and power plant automation products, with revenue composition as follows: 49.82% from power and industrial automation, 42.94% from grid automation, 7.09% from other sources, and 0.15% from rental, technical services, and material sales [1] Group 2 - Guojin Fund has one fund heavily invested in Sifang Co., Ltd., specifically Guojin Guoxin Initiated A (762001), which reduced its holdings by 108,900 shares in the third quarter, now holding 200,300 shares, accounting for 4.89% of the fund's net value, making it the second-largest holding [2] - The fund has achieved a floating profit of approximately 314,500 yuan today [2] - Guojin Guoxin Initiated A (762001) was established on August 28, 2012, with a latest scale of 74.7632 million yuan, and has recorded a year-to-date return of 3.36% and a one-year return of 17.94% [2]

Market Overview - The grid equipment sector increased by 0.77% compared to the previous trading day, with HeShun Electric leading the gains [1] - The Shanghai Composite Index closed at 4082.98, down 0.07%, while the Shenzhen Component Index closed at 13959.48, down 0.51% [1] Stock Performance - HeShun Electric (300141) closed at 17.50, up 20.03% with a trading volume of 622,300 shares and a transaction value of 9.54 billion [1] - Tongguang Cable (300265) closed at 15.77, up 10.43% with a trading volume of 1,212,600 shares and a transaction value of 18.31 billion [1] - Shangwei Co. (603333) closed at 66.8, up 10.04% with a trading volume of 517,600 shares and a transaction value of 4.50 billion [1] - Other notable performers include Huazhe Cable (001208) up 9.99%, Far East Holdings (600869) up 9.97%, and Sanhui Electric (002857) up 6.80% [1] Capital Flow - The grid equipment sector experienced a net outflow of 1.581 billion from institutional investors, while retail investors saw a net inflow of 1.941 billion [2] - The overall capital flow indicates a mixed sentiment, with institutional investors withdrawing funds while retail investors are actively buying [2] Individual Stock Capital Flow - HeShun Electric saw a net inflow of 777.28 million from retail investors, while institutional investors had a net outflow of 545.97 million [3] - Shangwei Co. had a net inflow of 900.82 million from institutional investors, indicating strong institutional interest despite overall sector outflows [3] - Other stocks like Hongxiang Co. (300427) and Baili Electric (600468) also showed varied capital flows, with significant retail participation [3]