Core Viewpoint - Shanghai Electric's stock has experienced fluctuations, with a recent decline of 2.06% and a year-to-date increase of 17.26%, indicating a volatile yet upward trend in its stock performance [1][2]. Financial Performance - For the first half of 2025, Shanghai Electric reported a revenue of 543.03 billion yuan, reflecting a year-on-year growth of 8.89%, while the net profit attributable to shareholders was 8.21 billion yuan, up 36.40% compared to the previous year [2]. - The company has cumulatively distributed dividends amounting to 99.73 billion yuan since its A-share listing, with no dividends paid in the last three years [3]. Stock Market Activity - As of October 28, Shanghai Electric's stock price was 9.51 yuan per share, with a trading volume of 22.93 billion yuan and a turnover rate of 1.89%, leading to a total market capitalization of 147.78 billion yuan [1]. - The stock has seen significant trading activity, with a net outflow of 2.81 billion yuan from main funds, while large orders accounted for 18.90% of buying and 23.85% of selling [1]. Shareholder Structure - As of June 30, 2025, the number of shareholders for Shanghai Electric was 704,400, a decrease of 6.70% from the previous period, with an average of 0 shares per shareholder [2]. - Major shareholders include China Securities Finance Corporation and Hong Kong Central Clearing Limited, with notable changes in their holdings [3].

Market Overview - On October 27, the Shanghai State-Owned Enterprise Reform sector rose by 0.41% compared to the previous trading day, with Guokai Detection leading the gains [1] - The Shanghai Composite Index closed at 3996.94, up 1.18%, while the Shenzhen Component Index closed at 13489.4, up 1.51% [1] Top Gainers in Shanghai State-Owned Enterprise Reform Sector - Guokai Detection (301289) closed at 66.08, up 5.37% with a trading volume of 78,100 shares and a transaction value of 508 million [1] - Zhongke Company (688347) closed at 133.50, up 4.71% with a trading volume of 513,000 shares and a transaction value of 6.587 billion [1] - Shanghai Electric (601727) closed at 9.71, up 3.52% with a trading volume of 4.5977 million shares and a transaction value of 4.417 billion [1] Top Losers in Shanghai State-Owned Enterprise Reform Sector - Huajian Group (600629) closed at 26.86, down 9.99% with a trading volume of 1.565 million shares and a transaction value of 4.261 billion [2] - Yinghe Technology (300457) closed at 29.49, down 7.96% with a trading volume of 507,100 shares and a transaction value of 1.52 billion [2] - Shangshi Development (600748) closed at 6.40, down 4.19% with a trading volume of 1.1595 million shares and a transaction value of 750 million [2] Capital Flow Analysis - On the same day, the main funds in the Shanghai State-Owned Enterprise Reform sector experienced a net outflow of 1.55 billion, while retail investors saw a net inflow of 803 million [2] - The table of capital flow indicates that Shanghai Electric (601727) had a main net inflow of 193 million, while Guokai Detection (301289) had a main net inflow of 25.6 million [3]

Market Performance - The other power equipment sector increased by 2.25% compared to the previous trading day, with Xinle Energy leading the gains [1] - The Shanghai Composite Index closed at 3996.94, up 1.18%, while the Shenzhen Component Index closed at 13489.4, up 1.51% [1] Stock Highlights - Xinfu Energy (300593) closed at 23.80, up 17.65% with a trading volume of 569,500 shares and a transaction value of 1.26 billion [1] - Keda (002518) closed at 42.04, up 7.52% with a trading volume of 250,500 shares [1] - Shenghong Co. (300693) closed at 40.37, up 6.46% with a trading volume of 312,700 shares [1] - Dongfang Electric (600875) closed at 21.47, up 6.29% with a trading volume of 1,160,000 shares [1] Capital Flow - The other power equipment sector experienced a net outflow of 800 million from institutional investors, while retail investors saw a net inflow of 540 million [2] - The net inflow from speculative funds was 261 million [2] Individual Stock Capital Flow - Shanghai Electric (601727) had a net inflow of 193 million from institutional investors, while it faced a net outflow of 29.43 million from speculative funds [3] - Xinle Energy (300593) saw a net inflow of 140 million from institutional investors, with a net outflow of 48.90 million from speculative funds [3] - Dongfang Electric (600875) had a net inflow of 146 million from institutional investors, with a net outflow of 65.44 million from speculative funds [3]

Core Viewpoint - UBS has released a report expressing increased optimism regarding China's electricity market demand, projecting an 8% growth from 2028 to 2030, which is double the previous forecast [1] Group 1: Company Performance - Harbin Electric (01133) shares rose by 13.79% to HKD 13.53 - Dongfang Electric (600875) shares increased by 11.24% to HKD 20.38 - Shanghai Electric (601727) shares climbed by 5.54% to HKD 4.95 [1] Group 2: Market Drivers - UBS attributes the increased demand forecast to structural drivers such as AI data centers, exports, and electrification, with the impact of these factors exceeding earlier expectations [1] - The report indicates that the adjustments reflect enhanced confidence in the growth of AI data center construction, accelerated electricity export growth, and faster electrification, which will benefit capital expenditures in power equipment and grid starting next year [1] Group 3: Industry Outlook - The Central Committee of the Communist Party of China has proposed forward-looking plans for future industries, promoting nuclear fusion energy as a new economic growth point [1] - Everbright Securities believes that since 2025, China's nuclear fusion sector has entered a rapid development phase in technology breakthroughs and industrial layout, with multiple technological routes advancing simultaneously [1] - The domestic market is gradually entering a phase of accelerated bidding and engineering construction for controllable nuclear fusion projects, indicating promising long-term development [1]

Investment Rating - The report maintains an "Overweight" rating for the defense and military industry [6] Core Insights - The 20th Central Committee's Fourth Plenary Session emphasizes the importance of a strong military strategy and the significance of becoming a space power, aiming for high-quality advancement in national defense and military modernization by 2035 [9][19] - The "15th Five-Year Plan" is expected to build on the achievements of the "14th Five-Year Plan," focusing on the 2027 military centenary goal and supporting the modernization of national defense and military capabilities [9][19] - The report highlights the need for advancements in mechanization, information technology, and intelligence integration to enhance combat capabilities and national strategic systems [10][19] Market Overview - The defense and military index rose by 2.81% this week, ranking 12th among 31 primary industries [8][35] - The current PE(TTM) for the defense and military sector is 74.6 times, with sub-sectors showing varying PE ratios, such as aerospace equipment at 73.9 times and aerospace equipment at 182.2 times [8][41] Key Sector Dynamics - **Controlled Nuclear Fusion**: New Hope Group showcased advancements in hydrogen-boron fusion at the FEC2025 conference, achieving significant milestones in plasma current and magnetic field strength [12][24] - **Low-altitude Economy**: The Tianjin International Helicopter Expo highlighted the growth potential of the low-altitude economy, with projections estimating a market size of 1.5 trillion yuan by 2025 and over 3.5 trillion yuan by 2035 [13][29] - **Aerospace Engines and Turbines**: Shanghai Electric successfully completed the assembly and ignition of a heavy-duty industrial gas turbine, indicating progress in domestic manufacturing capabilities [14][30] - **Satellite Internet**: The China Aerospace Science and Technology Corporation successfully launched a communication technology test satellite, marking a significant achievement in satellite deployment [15][31] Suggested Focus Areas - **Missile and Military Electronics**: Companies to watch include Zhenhua Technology, Hongyuan Electronics, and Torch Electronics [16][23] - **Aerospace Engines**: Key players include Aero Engine Corporation of China and related suppliers [16][21] - **Military Trade**: Focus on companies like AVIC Chengfei and AVIC Shenyang [16][21] - **New Domains and Quality Construction**: Companies in commercial aerospace and low-altitude economy sectors are recommended for attention [16][22]

Market Overview - The other power equipment sector increased by 2.23% compared to the previous trading day, with Kehua Data leading the gains [1] - The Shanghai Composite Index closed at 3950.31, up 0.71%, while the Shenzhen Component Index closed at 13289.18, up 2.02% [1] Stock Performance - Key stocks in the other power equipment sector showed significant gains, with Kehua Data (002335) closing at 66.00, up 7.32% with a trading volume of 274,400 shares and a transaction value of 1.781 billion [1] - Other notable performers included: - Oulu Tong (300870) at 199.80, up 6.24% [1] - Leihong Co. (300693) at 37.92, up 4.90% [1] - Zhongheng Electric (002364) at 27.19, up 4.62% [1] - Maigemit (002851) at 74.20, up 4.51% [1] Capital Flow - The other power equipment sector saw a net inflow of 152 million in main funds, while retail funds experienced a net outflow of 25.94 million [2] - The capital flow for key stocks included: - Kehua Data with a net inflow of 2.40 billion, accounting for 13.49% of main funds [3] - Shanghai Electric (601727) with a net inflow of 1.35 billion, representing 4.21% of main funds [3] - Zhongheng Electric with a net inflow of 36.64 million, making up 3.80% of main funds [3]

Core Insights - Shanghai Electric and its partners have established a new energy storage technology company, Linyi Energy Storage Technology Co., Ltd, with a registered capital of 60 million yuan [1] Company Summary - The new company is wholly owned by Shanghai Electric (Anhui) Energy Storage Technology Co., Ltd, which is jointly held by Shanghai Electric and Shanghai Yueda New Industrial Group Co., Ltd [1] - The business scope of the new company includes battery manufacturing, battery parts production and sales, engineering and technology research, and energy storage technology services [1]

Core Viewpoint - Shanghai Electric's stock has shown a significant increase in price and trading volume, indicating positive market sentiment and potential growth opportunities in the energy and equipment sectors [1][2]. Company Overview - Shanghai Electric Group Co., Ltd. was established on March 1, 2004, and listed on December 5, 2008. The company is based in Huangpu District, Shanghai, and its main business areas include renewable energy and environmental protection equipment, efficient clean energy equipment, industrial equipment, and modern services [1]. - The revenue composition of Shanghai Electric is as follows: 81.52% from product sales, 9.43% from service provision, 4.56% from engineering construction, and 4.49% from other businesses [1]. Financial Performance - For the first half of 2025, Shanghai Electric achieved a revenue of 54.303 billion yuan, representing a year-on-year growth of 8.89%. The net profit attributable to shareholders was 0.821 billion yuan, reflecting a year-on-year increase of 36.40% [2]. - Since its A-share listing, Shanghai Electric has distributed a total of 9.973 billion yuan in dividends, with no dividends paid in the last three years [3]. Shareholder Information - As of June 30, 2025, the number of shareholders for Shanghai Electric was 704,400, a decrease of 6.70% from the previous period. The average circulating shares per person remained at 0 shares [2]. - The top ten circulating shareholders include China Securities Finance Corporation, which holds 211.2 million shares (a decrease of 20.3946 million shares), and Hong Kong Central Clearing Limited, which holds 138 million shares (an increase of 6.9912 million shares) [3].

Core Insights - The event "Intelligent Manufacturing Engine, Green Energy" was held in Shanghai's Minhang District, highlighting the region's strong industrial foundation and innovation resources, with a projected GDP exceeding 400 billion yuan in 2024 and strategic emerging industries accounting for 52.6% of the output [1][2]. Group 1: Industry Development Strategy - Minhang District focuses on the "12345" strategy, emphasizing the advanced energy equipment and green low-carbon industries as core areas, with the advanced energy equipment sector accounting for approximately one-third of the city's total [2][3]. - The district aims to achieve an industrial revenue of 100 billion yuan by 2025 and exceed 150 billion yuan by 2030, positioning the area as a new engine for industrial upgrading and green development [2][3]. Group 2: Collaborative Framework - The district has established a "one core, one belt" development model, with a focus on innovation and research collaboration, leveraging local universities and leading enterprises to create a closed-loop industrial chain [4][5]. - A series of cooperation agreements were signed, including a new partnership between the Minhang District government and Shanghai Electric Group to develop a comprehensive industry system in clean energy and hydrogen sectors [6]. Group 3: Funding and Support Mechanisms - An industrial fund matrix was launched, combining municipal and district-level funds with social capital, targeting clean energy and advanced technology sectors to support the entire lifecycle of enterprises [7]. - The district has initiated a project for the intelligent transformation of energy equipment, focusing on integrating AI with high-end manufacturing processes [8]. Group 4: Recognition and Future Directions - Thirty key enterprises in the advanced energy equipment and green low-carbon sectors were recognized, including leading companies in gas turbines and nuclear materials, to stimulate innovation and establish a leading enterprise development model [7]. - The district aims to align with national "dual carbon" goals, enhancing its industrial ecosystem through collaboration with leading firms and optimizing resource allocation [5][8].

Core Viewpoint - The company will hold a performance briefing for the third quarter of 2025 to enhance communication with investors and provide insights into its operational results and financial metrics [3]. Group 1: Meeting Details - The performance briefing is scheduled for October 30, 2025, from 14:00 to 15:00 [2][4]. - The meeting will take place at the Shanghai Stock Exchange Roadshow Center and will be conducted in an interactive online text format [4]. - Investors can submit questions from October 23 to October 29, 2025, before 16:00, through the Roadshow Center website or via the company's email [2][5]. Group 2: Company Participation - Key participants from the company include Chairman Qiao Yinping, CEO Wang Yong, and other board members [5]. - The company may adjust the list of attendees due to special circumstances [5]. Group 3: Investor Participation - Investors can log in to the Roadshow Center on the day of the meeting to participate and ask questions [5]. - The company will address commonly asked questions during the briefing [6]. Group 4: Contact Information - The Securities Affairs Department can be contacted for inquiries at 021-54961895 or via email at sewc_ir@shanghai-electric.com [6].