Financial Performance - In the first half of 2025, the company achieved total revenue of 1.884 billion, a year-on-year increase of 36.39% [1] - The net profit attributable to shareholders was 243 million, reflecting a year-on-year growth of 56.79% [1] - The net profit after deducting non-recurring gains and losses was 228 million, up 40.11% year-on-year [1] - The net cash flow from operating activities was -173 million, compared to -96.05 million in the same period last year [1] Business Segments - The new energy control segment remains the largest revenue source, generating 1.524 billion, a year-on-year increase of 44.97%, accounting for over 80% of total revenue [1] - The engineering transmission business reported revenue of 226 million, with a year-on-year growth of 11.5% and a gross margin increase to 47.71% [1] - Revenue from overseas markets reached 148 million, marking a year-on-year increase of 54.46%, with a gross margin of 54.65% [1] Competitive Position and Market Strategy - The company has established a solid competitive barrier in the wind power converter sector, achieving technological breakthroughs in offshore wind power protection and reliability [2] - The company’s product shipment capacity and sales in the photovoltaic inverter sector continue to rise steadily [2] - Revenue from energy storage and transmission businesses is growing annually, with ongoing expansion in hydrogen energy product sales [2] - Leveraging core technologies and product platforms, the company is extending its product lines into new fields, supporting the development of integrated wind-solar-storage, hydrogen energy, and large-capacity power supply sectors [2] - The company contributes to the achievement of carbon peak and carbon neutrality goals, aiding various industries in transitioning to high-quality development [2]

Summary of Conference Call on HVDC Market: Sungrow and Hezhong Electric Industry Overview - The conference call focused on the HVDC (High Voltage Direct Current) market, particularly in relation to data centers and the transition from traditional power supply systems to HVDC solutions [1][3][4]. Key Points and Arguments 1. **Shift to HVDC Power Supply**: Major tech companies like Meta, Google, and Microsoft are transitioning to 400V/800V HVDC power supply systems to meet the high power demands and cooling challenges of data centers, as traditional copper-based distribution systems are unsustainable [1][3]. 2. **NVIDIA's Influence**: NVIDIA's Ruban Ultra and Revolt series products, with single cabinet power reaching up to 600kW and even megawatt levels, are driving CSP manufacturers to adopt HVDC power supply systems [1][4]. 3. **Implementation Paths for HVDC**: There are two main paths for implementing HVDC: the sidecar power supply solution and the SST (Solid State Transformer) solution. The sidecar solution is favored in the short term for its compatibility with existing systems [1][5][6]. 4. **Market Potential for Sungrow and Hezhong Electric**: Both companies have technological advantages in large-scale energy storage and wind power generation, positioning them well to capture market share in HVDC equipment development [1][8]. 5. **Projected Market Growth**: The overseas HVDC market is expected to reach $40-50 billion by 2028. If Sungrow captures a 30% market share, it could contribute $3-6 billion in profits, indicating significant growth potential [2][10]. 6. **Challenges with Traditional Power Supply**: The traditional 48V power supply architecture is becoming inefficient as it requires excessive copper to manage high currents, leading to unsustainable costs and heat losses [3]. 7. **Domestic Suppliers' Opportunities**: The transition from 48V to 800V or ±400V HVDC presents opportunities for domestic suppliers to enter the North American market, especially those familiar with HVDC technology [9][13]. 8. **Sungrow's Strategic Positioning**: Sungrow has made strategic deployments in AIDC (Advanced Intelligent Data Center) and is expected to leverage its inverter and energy storage technology for HVDC applications [10][11]. 9. **Hezhong Electric's Competitive Edge**: Hezhong Electric, while smaller, has strong ties with major North American data center players and is positioned to quickly integrate into the supply chain [12][15]. 10. **Future Market Valuation**: The HVC (High Voltage Current) industry is projected to grow rapidly, with Hezhong Electric's market valuation potentially reaching $30 billion within six months, based on a 50x PE ratio [14]. Additional Important Insights - **Technological Advancements**: The introduction of new products by Delta at the OCP summit, including HVDC systems with 800kW cabinet power, indicates a competitive landscape where Hezhong Electric is well-positioned [15]. - **Meta's Prometheus Project**: Hezhong Electric's involvement in Meta's Prometheus project, expected to launch in 2026, could significantly boost its profits depending on the market share it captures [13]. This summary encapsulates the critical insights from the conference call regarding the HVDC market, highlighting the strategic positioning of Sungrow and Hezhong Electric amidst industry shifts and technological advancements.

Investment Rating - The industry investment rating is "Outperform the Market" [1][36]. Core Insights - The report highlights a significant increase in lithium carbonate prices, which is expected to enhance profitability in related sectors, particularly in battery and cathode materials [1][24]. - The report anticipates a gradual recovery in domestic new energy vehicle sales starting from August, driven by the release of subsidy funds, with a forecast of high growth in 2025 [1][24]. - The photovoltaic sector is undergoing a "de-involution" process, with government policies aimed at regulating low-price competition and promoting product quality [1][24]. - The hydrogen energy sector is being supported by continuous policy initiatives, with a focus on companies that have cost and technological advantages in electrolyzer production and hydrogen infrastructure [1][24]. Summary by Sections Market Overview - The electric equipment and new energy sector saw a 1.94% increase this week, with wind power leading at 4.05% and photovoltaic at 1.26% [10][13]. - The lithium battery index rose by 2.72%, reflecting ongoing price adjustments in the lithium market [10][13]. New Energy Vehicles - In July 2025, new energy vehicle retail sales reached 987,000 units, a year-on-year increase of 22.3% but a month-on-month decrease of 3.3% [24]. - The penetration rate of new energy vehicles in the overall passenger car market reached 54.0%, up 2.7 percentage points from the previous year [24]. Lithium Market - The price of battery-grade lithium carbonate reached 71,961 yuan per ton on August 8, marking a month-on-month increase of 1,012 yuan per ton [24]. - The report notes that the price of lithium carbonate has been influenced by potential production halts in Jiangxi lithium mines [24]. Photovoltaic Sector - The report indicates that the price of silicon materials remains stable, with mainstream prices for dense materials around 49-55 yuan per kilogram [15]. - The photovoltaic sector is expected to see an increase in production in August, particularly in polysilicon and other segments [24]. Hydrogen Energy - The National Energy Administration has announced pilot projects for green liquid fuel technology, including green methanol and ammonia [24]. - The report suggests focusing on companies with cost and technological advantages in the hydrogen energy sector [1][24]. Company Updates - Aisheng Co. reported a net loss of 238 million yuan for the first half of 2025, while Huaming Equipment achieved a net profit of 368 million yuan, a year-on-year increase of 17.17% [26]. - Hewa Electric reported a net profit of 242 million yuan, up 56.79% year-on-year [26].

Investment Rating - The investment rating for the AIDC power equipment and grid industry is "Outperform the Market" (maintained rating) [1] Core Viewpoints - The demand for AIDC power equipment is expected to grow significantly due to the increasing capital expenditure by major cloud service providers, with a projected annual growth rate of 20% from 2025 to 2030 [5][13] - The market space for various AIDC power equipment segments, including dry-type transformers, medium and low voltage switchgear, UPS, HVDC, and solid-state transformers, is estimated to reach significant values by 2030 [12][13] - The industry is witnessing a shift towards domestic companies gaining competitive advantages in the data center sector, with a potential overall value chain transfer to Chinese enterprises [5] AIDC Power Equipment Summary - Recent capital expenditures by North America's four major cloud service providers reached $95 billion in Q2, a year-on-year increase of 66% [5] - The projected global AI computing load from 2025 to 2030 is expected to be 9.7, 15.9, 20.2, 22.3, 23.4, and 24.6 GW respectively, with corresponding AIDC power equipment demand estimated at 29, 48, 60, 67, 70, and 74 GW [5][13] - The market space for dry-type transformers, medium and low voltage switchgear, UPS, HVDC, and solid-state transformers is expected to reach 85, 341, 41, 380, and 239 billion yuan respectively by 2030 [12][13] - Recent performance in the AIDC power equipment sector shows significant increases, with high-voltage direct current (HVDC) rising by 19.7%, server power supplies by 11.3%, and lead-acid batteries by 8.5% [5] - Key companies in the AIDC power equipment sector include Jinpan Technology, Mingyang Electric, Hezhong Electric, and others [5] Grid Industry Summary - In June 2025, the total investment in national power engineering reached 105.7 billion yuan, a year-on-year increase of 22.5% [31] - The total investment in national grid engineering for the first half of 2025 was 291.1 billion yuan, reflecting a year-on-year increase of 14.6% [32] - The recent bidding for the State Grid's fourth batch of substation equipment amounted to approximately 12.77 billion yuan, with a cumulative estimated bidding amount for the year reaching 66.84 billion yuan, a year-on-year increase of 20.5% [58] - The grid equipment sector has also seen significant stock performance, with cable components and other equipment rising by 6.8% recently [5] - Key focus areas for the grid industry include high-voltage orders, virtual power plants, and international expansion opportunities [5]

Investment Rating - The investment rating for the wind power industry is "Outperform the Market" (maintained rating) [1] Core Views - The offshore wind sector is expected to see significant project launches in Jiangsu and Guangdong in the first half of 2025, marking the beginning of a new era for national offshore wind development. The average annual installed capacity for offshore wind during the 14th Five-Year Plan is projected to exceed 20GW, significantly higher than the previous plan. Onshore wind installations are anticipated to reach a historical high of 100GW in 2025, with component manufacturers experiencing simultaneous volume and price increases, leading to substantial annual performance growth. The domestic manufacturing profitability of main engine companies is expected to recover in the third quarter as orders are delivered at increased prices, providing profit elasticity for Chinese wind turbine manufacturers in the coming years [4][5] Summary by Sections Industry News - Recent performance in the wind power sector has shown a divergence, with the top three performing segments being mooring systems (+8.2%), bearings (+6.1%), and castings (+0.8%). The top three individual stocks in terms of growth over the past two weeks are Wuzhou New Spring (+13.6%), Changsheng Bearings (+9.1%), and Yaxing Anchor Chain (+9.0%) [3] Market Data - As of 2025, the cumulative public bidding capacity for wind turbines nationwide is 45.9GW, with onshore wind turbine bidding capacity at 42.3GW and offshore wind turbine capacity at 3.7GW. The average winning bid price for onshore wind turbines (excluding towers) is 1,531 CNY/kW. In 2024, the total public bidding capacity is expected to reach 107.4GW, with a 61% year-on-year increase [7][8] Investment Recommendations - Three key investment directions are suggested: 1) Leading companies in export layouts for pipe piles and submarine cables; 2) Domestic main engine leaders with bottoming profits and accelerating exports; 3) Component manufacturers with opportunities for simultaneous volume and profit growth in 2025. Recommended companies include Goldwind Technology, Oriental Cable, Guoda Special Materials, Zhongji United, Daikin Heavy Industry, Riyue Co., Times New Materials, Hewei Electric, and Jinlei Co. [5]

Core Viewpoint - Hezhong Electric (603063) reported strong financial performance for the first half of 2025, with significant increases in revenue and net profit compared to the previous year, indicating robust growth in the new energy control business [1][9]. Financial Performance Summary - Total revenue for the first half of 2025 reached 1.884 billion yuan, a year-on-year increase of 36.39% [1]. - Net profit attributable to shareholders was 243 million yuan, up 56.79% year-on-year [1]. - In Q2 2025, total revenue was 1.111 billion yuan, reflecting a 33.33% increase year-on-year, while net profit for the quarter was 137 million yuan, a 38.11% increase [1]. - Gross margin was 36.66%, down 4.91% year-on-year, while net margin improved to 13.11%, up 5.21% [1]. - Total receivables amounted to 2.349 billion yuan, representing a 25.52% increase year-on-year, with receivables accounting for 533.22% of net profit [1][10]. Cost and Expense Analysis - Operating costs increased by 40.59%, driven by revenue growth [9]. - Sales expenses rose by 21.94% due to expanded sales activities [9]. - Management expenses increased by 1.35% as a result of business expansion [9]. - Financial expenses surged by 65.05% due to increased borrowing and interest costs [9]. - Research and development expenses grew by 2.54% as the company increased its investment in R&D [9]. Cash Flow and Investment Activities - Net cash flow from operating activities decreased by 79.85%, attributed to higher cash payments for goods and services [9]. - Net cash flow from investing activities increased by 79.53%, due to reduced cash outflows for investments [9]. - Net cash flow from financing activities rose by 150.58%, driven by increased cash from investments [9]. Fund Holdings and Market Performance - The largest fund holding Hezhong Electric is Guotai Valuation LOF, which increased its position to 5.6511 million shares [11]. - The fund's recent performance shows a 60.17% increase over the past year [12].

近期禾望电气（603063）发布2025年中报，证券之星财报模型分析如下： 营收与利润显著增长 根据禾望电气发布的2025年中报，公司营业总收入达到18.84亿元，较去年同期上升36.39%。归母净利 润为2.43亿元，同比增长56.79%。扣非净利润为2.28亿元，同比上升40.11%。这表明公司在主营业务方 面取得了显著的增长。 三费(销售费用、管理费用、财务费用)总计为2.54亿元，占营收比例为13.48%，同比下降13.67%。这表 明公司在费用控制方面取得了一定成效。然而，每股经营性现金流为-0.38元，同比减少了75.4%，显示 出公司在经营活动中的现金流压力较大。 应收账款风险值得关注 报告期末，公司应收账款为23.49亿元，占最新年报归母净利润的比例高达533.22%。这一比例远高于行 业平均水平，表明公司在应收账款管理方面存在较大风险，可能影响未来的现金流和盈利能力。 主营业务构成 公司主营业务收入主要来自新能源电控业务，收入为15.24亿元，占总收入的80.88%，毛利率为 32.46%。工程传动业务收入为2.26亿元，占总收入的11.99%，毛利率为47.71%。其他业务收入为1.15亿 ...

Core Viewpoint - Dongwu Securities issued a report on August 8, giving Hewei Electric (603063.SH, latest price: 39.25 CNY) a buy rating based on several growth drivers and competitive advantages [2] Group 1: Growth Drivers - The growth of the new energy electric control business is driving overall growth, and the full product line coverage supports international expansion [2] - The company possesses leading advantages in high-power technology, indicating significant potential in the transmission business [2] Group 2: Cost Management - The company demonstrates strong cost control capabilities, with a stable decrease in the period expense ratio [2]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company's revenue for H1 2025 reached 1.884 billion, a year-on-year increase of 36.39%, with a net profit attributable to shareholders of 243 million, up 56.79% year-on-year [7] - The growth is driven by the new energy business, with significant contributions from wind power converters and photovoltaic inverters [7] - The company is expanding its international market presence, with overseas revenue increasing by 54% year-on-year, now accounting for 8% of total revenue [7] - The engineering transmission business also showed growth, with revenue of 226 million, an increase of 11.5% year-on-year, benefiting from the export of frequency converters [7] - The company maintains strong cost control, with a gross margin of 36.66% and a decrease in expense ratio [7] - Future profit forecasts for 2025-2027 are 590 million, 712 million, and 821 million respectively, with corresponding P/E ratios of 31, 25, and 22 [7] Financial Summary - Total revenue projections for 2023A, 2024A, 2025E, 2026E, and 2027E are 3.752 billion, 3.733 billion, 4.514 billion, 5.367 billion, and 6.420 billion respectively, with year-on-year growth rates of 33.56%, -0.50%, 20.91%, 18.89%, and 19.63% [1] - Net profit attributable to shareholders for the same years is projected at 502.25 million, 440.58 million, 590.77 million, 712.23 million, and 820.70 million, with growth rates of 88.18%, -12.28%, 34.09%, 20.56%, and 15.23% [1] - The latest diluted EPS for 2023A, 2024A, 2025E, 2026E, and 2027E are 1.10, 0.97, 1.30, 1.57, and 1.81 respectively [1]

Investment Rating - The report maintains a "Buy" rating for the company [7] Core Views - The company achieved significant growth in H1 2025, with revenue of 1.884 billion RMB (up 36.39% YoY) and net profit of 243 million RMB (up 56.79% YoY) [1][2] - The strong performance in Q2 2025 was driven by high demand in downstream sectors, particularly in wind and energy storage, alongside effective cost control that improved overall gross margins [1][3] - The company is focusing on core technology platforms and diversifying application scenarios, which is expected to enhance its market position [1] Financial Performance - In Q2 2025, the company reported revenue of 1.111 billion RMB (up 33.33% YoY, up 43.60% QoQ) and a net profit of 137 million RMB (up 38.11% YoY, up 30.34% QoQ) [1][2] - The gross margin for Q2 2025 was 35.44%, an increase of 0.45 percentage points YoY, while the net margin was 12.68%, a slight decrease of 0.50 percentage points YoY due to increased credit impairment losses [2] - The company’s H1 2025 revenue from the new energy control business was 1.524 billion RMB (up 44.97% YoY), while the engineering transmission business revenue was 226 million RMB (up 11.50% YoY) [3] Business Segments - The new energy control business experienced robust growth, benefiting from strong demand in offshore wind and energy storage, although its gross margin decreased due to intensified market competition [3] - The engineering transmission business saw an increase in gross margin to 47.71% (up 8.26 percentage points YoY), attributed to the acceleration of domestic substitution and higher-value projects [3] Product Development and Market Expansion - The company is actively promoting large-capacity power supply and power quality products, with significant growth potential in data centers [4] - The overseas revenue for H1 2025 reached 148 million RMB (up 54.46% YoY), accounting for 7.83% of total revenue, indicating strong growth momentum in international markets [4] Profit Forecast and Valuation - The company’s projected net profits for 2025-2027 are 642 million RMB, 750 million RMB, and 830 million RMB, respectively, with corresponding EPS of 1.41, 1.65, and 1.83 RMB [5] - The report assigns a target price of 48.05 RMB for 2025, based on a PE ratio of 34 times, reflecting confidence in the company’s growth across its various business segments [5]