Core Viewpoint - Samsung Medical (601567.SH) announced that its wholly-owned subsidiary, Ningbo Aux Intelligent Technology Co., Ltd., has been recommended as a candidate for winning a bid in the State Grid Corporation of China's 2025 North China region procurement project, with an expected total bid amount of approximately 168.1283 million yuan [1]. Group 1 - The subsidiary, Aux Intelligent Technology, participated in the procurement project for overhead insulated wires, 10KV transformers, and complete sets of 10KV pole-mounted transformer equipment [1]. - The total expected bid amount of approximately 168.1283 million yuan indicates a significant opportunity for the company in the energy sector [1].

Core Viewpoint - Samsung Medical's subsidiary, Ningbo Aokex Intelligent Technology Co., Ltd., has been recommended as a candidate for winning a bid in a significant procurement project by State Grid Corporation of China, with an expected total bid amount of approximately 168 million yuan [1]. Group 1 - The company has been selected as a candidate for the procurement of overhead insulated wires, 10KV transformers, and complete sets of 10KV pole-mounted transformers [1]. - The total expected bid amount for the project is around 168 million yuan [1]. - The specific products for which the company is a candidate include 10kV transformers with amorphous alloy oil immersion, silicon steel dry type, and various types of transformer sets [1].

Core Viewpoint - Samsung Medical's subsidiary, Ningbo Aokex Intelligent Technology Co., Ltd., has been recommended as a candidate for winning a bid in a significant procurement project by State Grid Corporation of China, with an estimated total bid amount of approximately 168 million yuan [1]. Group 1 - The project involves the procurement of overhead insulated wires, 10KV transformers, and complete sets of 10KV pole-mounted transformer equipment [1]. - Aokex Intelligent Technology is the candidate for multiple transformer types, including non-crystalline alloy oil-immersed transformers and silicon steel sheet dry-type transformers [1]. - The total expected bid amount of 168 million yuan indicates a substantial opportunity for the company in the energy equipment sector [1].

Core Viewpoint - Samsung Medical (601567.SH) announced that its wholly-owned subsidiary, Ningbo Aux Intelligent Technology Co., Ltd., has been recommended as a candidate for winning a bid in the State Grid Corporation of China's 2025 North China region procurement project, with an expected total bid amount of approximately 168.1283 million yuan [1]. Group 1 - The subsidiary, Aux Intelligent Technology, participated in the procurement project for overhead insulated wires, 10KV transformers, and complete sets of 10KV pole-mounted transformer equipment [1]. - The total expected bid amount of approximately 168.1283 million yuan indicates a significant opportunity for the company in the energy sector [1].

Investment Rating - The report maintains a positive outlook on the energy sector, particularly in renewable energy, storage, and hydrogen industries, driven by recent government policies and market demand [1][5][22]. Core Insights - The energy sector is experiencing a significant policy push, with the National Development and Reform Commission and the National Energy Administration releasing key guidelines aimed at promoting high-quality development in the renewable energy sector during the 14th Five-Year Plan period [1][5]. - There is a strong emphasis on the global demand for clean energy and the construction of new power grids over the next 3-5 years, presenting abundant investment opportunities in storage, green hydrogen, and ammonia [1][5]. - The report highlights the robust growth in the energy storage market, with a notable increase in global energy storage battery shipments, which reached 428 GWh in the first three quarters of 2025, marking a year-on-year increase of 90.7% [9][7]. Summary by Sections Energy Storage - The report emphasizes the necessity of a capacity pricing mechanism for energy storage, with Inner Mongolia setting a compensation standard of 0.28 yuan/kWh for 2026, which is better than expected [1][5]. - A long-term agreement between Haibo and Ningde Times for 200 GWh of energy storage batteries reinforces the optimistic outlook for storage demand and battery supply constraints [1][5][8]. Wind Power - Inner Mongolia plans to add 150 GW of new renewable energy capacity over the next five years, with a competitive bidding process for 15 GW of wind power projects in 2025, indicating sustained high demand in the short to medium term [2][15]. - The report notes favorable pricing policies for offshore wind projects in Zhejiang and Jiangsu, suggesting a significant increase in domestic offshore wind capacity during the 14th Five-Year Plan period [2][16]. Photovoltaics - The report suggests a focus on perovskite technology, which is gaining traction due to policy support and industry advancements, recommending investments in equipment and core materials [18][19]. - CSIQ's strong guidance for energy storage shipments in 2026, projected to be between 14-17 GWh, indicates robust growth potential in the solar sector [19][20]. Hydrogen and Fuel Cells - The report outlines a strategic push from the government to develop the green hydrogen and ammonia industry, with policies aimed at enhancing the integration of renewable energy sources [22][24]. - The establishment of a "flexible load" identity for green hydrogen projects is expected to improve their economic viability and support the stability of high-renewable energy grids [23][24]. Electric Grid - The report highlights significant price increases for metering equipment, with A-D grade meters seeing price hikes of over 30%, which is expected to enhance profit margins for leading companies [30]. - The ongoing high volume of bidding for transmission and transformation projects indicates a stable growth trajectory for the electric grid sector [30].

Summary of Conference Call for Samsung Medical Industry Overview - The conference call primarily discusses the **smart meter industry** in China, particularly focusing on the **2025 National Grid smart meter bidding** and its implications for the market [2][3]. Key Points and Arguments - **2025 Bidding Volume**: The expected bidding volume for smart meters in 2025 is **60 million units**, a decrease from **90 million units** in 2024. The 2026 bidding is anticipated to fully transition to new standard smart meters, which may lower costs and enhance economies of scale [2][3]. - **New Standard Smart Meters**: The new standard smart meters include features such as **fault self-diagnosis**, **automatic recording**, and **proactive reporting**, with a faster communication rate. Although costs have increased by approximately **10%**, it is projected that gross margins could improve by about **5 percentage points** [2][4][5]. - **Domestic Market Challenges**: The domestic distribution network market is facing challenges due to a decline in renewable energy demand and slower order deliveries, impacting revenue. However, breakthroughs in wind power projects and data centers are expected to support future growth [2][6]. - **Overseas Market Growth**: The overseas distribution network market is experiencing rapid growth, with overseas accessory orders reaching **2.2 billion yuan**, a **120% year-on-year increase**. The company plans to establish a production base in Latin America to meet local demand and expand its market presence [2][7]. - **North American Market Entry**: The company has secured over **200 million yuan** in smart meter orders in the U.S., although the transformer business has not yet commenced. Entering the North American market requires time for qualification certification and customer engagement, but the high industry demand is favorable for the company's development [2][7]. Additional Important Insights - **Price Fluctuations**: The prices for smart meters have shown signs of recovery, with A-level single-phase meters increasing from around **150 yuan** in the first batch to approximately **210 yuan** in the third batch. B-level three-phase meters have also seen price increases [3]. - **Production Capacity Expansion**: The company has significantly increased its production capacity with the completion of the new production base in **Qianwan** by the end of March 2025. This expansion alleviates previous capacity constraints [4][8]. - **Competitive Advantage in Europe**: The company is the only Chinese supplier to enter the European grid system, leveraging service quality and delivery speed to gain a competitive edge. The overseas team consists of about **1,000 people**, with overseas orders accounting for approximately **40%** of total orders [4][11][14]. - **Future Outlook for Overseas Business**: While no specific quantitative targets were provided for 2026, the company remains optimistic about its overseas distribution business, with current orders exceeding **2 billion yuan** and expectations for continued growth [12][13]. - **European Smart Meter Market**: Demand for smart meters in Europe has slowed down in 2025, but there is still a stable long-term demand, particularly in countries like Germany, which aims to increase smart meter penetration to over **90%** by 2030 [15]. Conclusion The conference call highlights the challenges and opportunities within the smart meter industry, particularly focusing on the transition to new standards, the impact of domestic market conditions, and the promising growth in overseas markets. The company's strategic initiatives and competitive positioning are expected to drive future growth despite current market fluctuations.

Core Insights - The high-pressure oxygen chamber concept has seen a decline of 0.21%, ranking among the top declines in concept sectors as of the market close on November 13 [1] - Within the sector, companies like Innovation Medical and International Medicine experienced significant declines, while six stocks saw price increases, with Dahu Co., Aoyang Health, and Samsung Medical leading the gains [1] Market Performance - The top-performing concept sectors today include: - Fluorochemical concept: +4.50% - Organic silicon concept: +4.47% - Sodium-ion battery: +4.47% - Lead metal: +4.27% - Phosphorus chemical: +4.25% [2] - The high-pressure oxygen chamber sector experienced a net outflow of 149 million yuan, with eight stocks seeing net outflows [2] Fund Flow Analysis - The stocks with the highest net outflows in the high-pressure oxygen chamber sector include: - Samsung Medical: -60.80 million yuan - Innovation Medical: -57.39 million yuan - International Medicine: -12.53 million yuan [2] - Conversely, the stocks with the highest net inflows include: - Yingkang Life: +10.12 million yuan - Hangyang Co.: +9.74 million yuan [2] Stock Performance - Key stock performances in the high-pressure oxygen chamber sector: - Samsung Medical: +0.37%, turnover rate: 2.18% - Innovation Medical: -2.00%, turnover rate: 13.41% - International Medicine: -0.80%, turnover rate: 1.13% [2]

Group 1 - Samsung Medical experienced a 5% decline in stock price, trading at 27.34 CNY per share, with a total transaction volume of 676 million CNY and a turnover rate of 1.71%, resulting in a total market capitalization of 38.418 billion CNY [1] - The company, Ningbo Samsung Medical Electric Co., Ltd., was established on February 1, 2007, and listed on June 15, 2011. Its main business involves the research, production, and sales of electric energy metering and information collection products, as well as distribution equipment and medical services [1] - The revenue composition of Samsung Medical includes 79.70% from the electric power sector, 19.15% from medical services, and 1.15% from other businesses, with no revenue from financing leasing and consulting services [1] Group 2 - Citic Prudential Fund has one fund heavily invested in Samsung Medical, specifically the Citic Prudential Emerging Industries Mixed A Fund (000209), which held 2.5721 million shares in the third quarter, unchanged from the previous period, accounting for 3.3% of the fund's net value [2] - The Citic Prudential Emerging Industries Mixed A Fund was established on July 17, 2013, with a latest scale of 1.839 billion CNY. Year-to-date returns are 30.86%, ranking 2777 out of 8147 in its category, while the one-year return is 19.45%, ranking 3450 out of 8056 [2] - The fund manager, Sun Haozhong, has been in the position for 5 years and 325 days, with a total asset scale of 3.145 billion CNY. The best fund return during his tenure is 77.62%, while the worst return is -55% [3]

Summary of Conference Call Notes Industry Overview - The conference call discusses the smart meter industry, particularly focusing on the impact of price changes and technological upgrades on market dynamics and key players [1][3]. Key Points and Arguments - **Market Size and Growth**: The domestic smart meter market is approximately 200-300 billion yuan annually, primarily driven by state-owned grid operators like State Grid and Southern Grid. Despite a price drop in 2024, the market is expected to recover and show positive growth by 2026, with smart meters accounting for about 3-4% of total grid investment [3][1]. - **Price Increase Drivers**: A significant price increase for smart meters is anticipated due to comprehensive upgrades announced by State Grid in September 2025, which include over 20 enhancements such as improved accuracy, environmental adaptability, and advanced communication features. This has led to a notable rise in costs, prompting higher prices for suppliers [4][1]. - **Technological Upgrades**: The new standards introduce several technical improvements: 1. Enhanced measurement accuracy from Class A to a higher standard. 2. Improved environmental adaptability, including UV resistance and temperature tolerance for high-altitude areas. 3. Strengthened electrification attributes, including better data processing capabilities. 4. Upgraded communication functions for remote data collection. 5. New temperature measurement features in some residential smart meters [6][5]. - **Market Share Dynamics**: The market share of leading companies in the Southern Grid and Inner Mongolia regions remains stable at 40-60%. However, during the price drop in 2024, the market share among top players in the State Grid became more dispersed. In 2025, with controlled new entrants and concentrated effective capacity, the concentration of leading companies is expected to increase [7][1]. Investment Opportunities - **Samsung Medical**: Highlighted as a key investment opportunity due to its large order volume, high gross margins, and significant net profit contributions. The company has a balanced domestic and international business layout, with strong growth potential in overseas markets. Projections indicate that Samsung Medical's domestic profit contribution will be significant in 2026, with overseas growth potentially exceeding 15%. The forecasted profit for 2026 is 1.4 billion yuan, with a target market capitalization of 57 billion yuan, representing a 40% growth potential [8][2]. Additional Important Insights - The price of smart meters typically peaks within one to two years following the release of new standards before gradually declining. For instance, after the 2020 standards were released, prices fell in 2022, while the third round of bidding in 2025 saw prices rise by over 50% [5][1].

Group 1 - The power sector is experiencing a strong rebound, particularly in the areas of power IoT and virtual power plants [1] - Companies such as Juhua Technology and Samsung Medical have reached their daily limit increase, indicating strong market performance [1] - Other companies like Haixing Electric, Penghui Energy, Kelun Electronics, Weisheng Information, and Youxun Technology have also shown significant gains [1]