Investment Rating - The report maintains an investment rating of "Synchronize with the market - A" for the power equipment and new energy industry [1]. Core Viewpoints - The report highlights the recent market performance of the power equipment and new energy industry over the past year, indicating a stable outlook amidst ongoing developments in technology and policy [1]. - It emphasizes the importance of multi-energy integration, including wind, solar, water, and nuclear energy, as outlined in the "14th Five-Year Plan" [4]. - The report notes that the National Energy Administration has set key tasks for the "14th Five-Year" period, focusing on expanding new energy supply, promoting integrated development, and enhancing consumption levels [3]. Summary by Relevant Sections Preferred Stocks - The report lists several preferred stocks with ratings, including: - Aishuo Co., Ltd. (600732.SH) - Buy - B - Longi Green Energy (601012.SH) - Buy - B - Daqian Energy (688303.SH) - Buy - B - Fulete (601865.SH) - Buy - A - Hengdian East Magnet (002056.SZ) - Buy - A - Sungrow Power Supply (300274.SZ) - Buy - A - Deye Co., Ltd. (605117.SH) - Buy - A - Langxin Group (300682.SZ) - Buy - B - Quartz Co., Ltd. (603688.SH) - Buy - A - Bowei Alloy (601137.SH) - Buy - A [2]. Price Tracking - The report provides price tracking for various components in the industry: - Polysilicon prices remain stable at 52.0 CNY/kg for dense materials and 50.0 CNY/kg for granular silicon [5]. - Silicon wafer prices are stable, with 182-183.75mm N-type wafers priced at 1.35 CNY/piece and 210mm N-type wafers at 1.70 CNY/piece [6]. - Battery cell prices show a slight decrease for 182-183.75mm N-type cells to 0.310 CNY/W, while 210mm N-type cells remain stable [6]. - Module prices are stable across various types, with 182*182-210mm TOPCon double-glass modules priced at 0.693 CNY/W [7]. Investment Suggestions - The report recommends focusing on specific sectors: - BC new technology direction: Aishuo Co., Ltd., Longi Green Energy - Supply-side direction: Daqian Energy, Fulete - Light storage direction: Sungrow Power Supply, Deye Co., Ltd. - Power market direction: Langxin Group - Domestic substitution direction: Quartz Co., Ltd. - Overseas layout direction: Hengdian East Magnet, Bowei Alloy [8].

Summary of the Conference Call for 德业股份 Company Overview - **Company**: 德业股份 (DeYee Co., Ltd.) - **Industry**: Inverter and energy storage solutions Key Financial Performance - **Revenue**: In the first three quarters of 2025, revenue reached 8.846 billion RMB, a year-on-year increase of 10.36% [4] - **Net Profit**: Net profit was 2.347 billion RMB, up 6.53% year-on-year [4] - **Inverter Business Revenue**: Revenue from inverter business was 4.585 billion RMB, a 9.76% increase [4] - **Energy Storage Inverter Revenue**: Revenue from energy storage inverters was 3.694 billion RMB, a 14.47% increase [4] - **Energy Storage Battery Pack Revenue**: Revenue from energy storage battery packs was 2.423 billion RMB, a significant increase of 57.88% [2] Business Segments and Growth - **Inverter Product Breakdown**: - Household storage contributed 2.598 billion RMB - Commercial storage contributed 1.096 billion RMB - String inverters revenue was 699 million RMB, up 10.75% - Micro-inverter revenue decreased by 55.53% to 129 million RMB [2][4] - **Market Share in Australia**: Currently at approximately 5%, with a target to increase to 15% by 2026. Expected sales in Australia for 2025 are projected between 250 million to 300 million RMB, and 1 billion to 1.5 billion RMB for 2026 [11][12] - **AIDC Product Development**: Focus on SST (Solid State Transformer) and PSU (Power Supply Unit) products, with SSD entering solid state transformer phase expected to complete in one year [13] - **AI Intelligent Scheduling System**: Used for VPP (Virtual Power Plant) management, currently applied in household storage market (90%) and commercial storage market (10%). Future monetization is possible to enhance customer energy management efficiency [14] Market Expansion and Future Outlook - **Indonesia Market**: Established presence over three to four years, leading brand with partnerships for a million photovoltaic plan. Large off-grid photovoltaic systems expected to roll out in 2026 [20][21] - **Ukraine Market**: Monthly growth rate of 70%-80%, with significant demand expected post-conflict [16] - **Global Demand**: Anticipated 20%-30% growth in household storage business, particularly in Europe, Southeast Asia, and the Middle East [19] - **US Market Strategy**: Collaborating with SolarEdge for inverter promotion and battery sales. Positive growth expected in 2026 due to demand and compliance with the "Great American Law" [22] Profitability and Cost Management - **Gross Margin**: Overall gross margin for the third quarter was 39%, with improvements due to increased shipments of energy storage inverters and maintaining a gross margin of around 60% for commercial storage [5][18] - **Sales Expense Control**: Sales expenses have remained stable despite rapid business expansion, with a decrease in sales expense ratio [33] Emerging Markets and Competitive Landscape - **Emerging Markets**: High market share in Southeast Asia, Middle East, and Africa, with annual growth rates of 30%-40% in regions like the Philippines and Vietnam [35] - **European Market Demand**: Focused on arbitrage and ancillary services, with strong growth expected [28] - **Battery Supply Chain**: Long-term contracts with battery suppliers, maintaining inventory levels and managing price increases effectively [30] Conclusion 德业股份 is positioned for significant growth in various markets, with a strong focus on innovation in energy storage and inverter technology. The company is actively expanding its market presence in Australia, Indonesia, and the US while maintaining profitability through effective cost management and strategic partnerships.

Core Viewpoint - The photovoltaic equipment sector experienced a significant increase of 3.34% on November 3, with Canadian Solar leading the gains [1] Group 1: Market Performance - The Shanghai Composite Index closed at 3976.52, up 0.55%, while the Shenzhen Component Index closed at 13404.06, up 0.19% [1] - Key stocks in the photovoltaic equipment sector showed notable price increases, with Canadian Solar (688472) rising by 12.19% to a closing price of 17.39 [1] Group 2: Stock Performance - The following stocks in the photovoltaic equipment sector had significant price changes: - Canadian Solar: 12.19% increase, closing at 17.39, with a trading volume of 2.183 million shares and a transaction value of 3.658 billion [1] - Hongyuan Green Energy (603185): 8.89% increase, closing at 32.10, with a transaction value of 3.481 billion [1] - Deye Co., Ltd. (605117): 7.55% increase, closing at 80.10, with a transaction value of 2.277 billion [1] - Other notable increases include TianTai Solar (66588889) at 6.28%, Shuangliang Energy (600481) at 5.93%, and JinkoSolar (688223) at 5.16% [1] Group 3: Capital Flow - The photovoltaic equipment sector saw a net inflow of 1.177 billion in main funds, while retail funds experienced a net outflow of 700 million [2] - The following stocks had significant capital flow: - Sunshine Power (300274): Main funds net inflow of 516 million, retail funds net outflow of 1.17 billion [3] - Longi Green Energy (601012): Main funds net inflow of 253 million, retail funds net outflow of 1.18 billion [3] - Canadian Solar (688472): Main funds net inflow of 246 million, retail funds net outflow of 287 million [3]

Market Overview - The Shanghai Composite Index rose by 0.55% to 3976.52 points, while the Shenzhen Component Index increased by 0.19% and the ChiNext Index gained 0.29% [1][2] - The total market turnover was 2.13 trillion yuan, a decrease of 216.9 billion yuan compared to the previous trading day, with over 3500 stocks experiencing gains [1] Sector Performance - The thorium-based molten salt reactor concept saw significant gains, with the Hainan sector performing strongly due to upcoming policy benefits from the Hainan Free Trade Port [2][4] - The gaming and short drama sectors also showed strength, with several stocks reaching their daily limit up [6][7] - The photovoltaic equipment sector experienced an upward trend, driven by China's leading position in global solar energy production, with key components expected to exceed 80% of global capacity by 2024 [7][8] Notable Stocks - In the Hainan Free Trade Zone, stocks such as Intercontinental Oil and Gas, Xinlong Holdings, and Haima Automobile reached their daily limit up, reflecting positive market sentiment ahead of the full closure operation on December 18 [4][5] - In the gaming sector, stocks like Oriental Pearl and Huayi Brothers saw significant increases, with some reaching their daily limit up [6][7] - In the photovoltaic sector, companies like Canadian Solar and Longi Green Energy reported substantial gains, with Canadian Solar up by 12.19% [8] Coal Sector Activity - The coal sector became active with companies like TBEA and Antai Group hitting their daily limit up, driven by seasonal demand as heating season begins [9] - The demand for coal is expected to rise due to high consumption from steel mills and thermal power plants, while supply-side policies are tightening, leading to price stabilization [9] Precious Metals and Semiconductor Stocks - Precious metals and gold stocks experienced a pullback following tax policy changes, with companies like Hunan Gold and Zhongjin Gold seeing declines [10] - Semiconductor stocks faced downward pressure, with several companies reporting significant losses, attributed to rising costs and industry-wide price increases [11] Future Market Outlook - The market is expected to actively seek future economic signals, with a focus on technology growth sectors such as AI applications, military, and pharmaceuticals, while also considering cyclical sectors like steel and chemicals [12]

Core Viewpoint - The photovoltaic sector is experiencing a significant rally, with major companies like TBEA and Sungrow seeing substantial stock price increases, indicating a positive market sentiment towards the industry [1][2]. Group 1: Market Performance - TBEA's stock reached the daily limit, while DeYuan shares rose over 7% and Sungrow increased by over 4% [1]. - Multiple photovoltaic-related ETFs saw gains exceeding 3%, reflecting strong investor interest in the sector [1]. Group 2: Industry Outlook - Analysts suggest that the photovoltaic industry is currently undervalued compared to historical levels, presenting potential investment opportunities [2]. - Future policies are expected to focus on product pricing measures, mergers and acquisitions among companies, increased industry entry barriers, and enhanced product quality standards, which could optimize the competitive landscape and industry ecosystem [2].

Core Insights - The Zhongzheng Photovoltaic Industry Index (931151) has seen a strong increase of 2.70% as of November 3, 2025, with significant gains in constituent stocks such as Tebian Electric (600089) and Hongyuan Green Energy (603185), both rising by 10.01% [1] - The Photovoltaic ETF Fund (516180) has also risen by 2.94%, with a recent price of 0.84 yuan, and has accumulated a 6.54% increase over the past week [1] - The index reflects the overall performance of listed companies involved in the photovoltaic industry chain, selecting up to 50 representative stocks [1] Company Performance - The top ten weighted stocks in the Zhongzheng Photovoltaic Industry Index as of October 31, 2025, account for 60.74% of the index, with significant players including Sunshine Power (300274) and Longi Green Energy (601012) [2] - The performance of key stocks includes: - Sunshine Power (300274): up 3.26%, weight 17.58% - Longi Green Energy (601012): up 2.61%, weight 8.38% - Tebian Electric (600089): up 10.01%, weight 7.31% - TCL Technology (000100): up 0.46%, weight 7.29% - Tongwei Co. (600438): up 1.21%, weight 4.91% - Zhengtai Electric (601877): down 0.59%, weight 2.68% - Jingcheng Machinery (300316): up 0.82%, weight 2.43% - Deyang Co. (605117): up 6.40%, weight 2.42% - TCL Zhonghuan (002129): up 2.43%, weight 2.38% - Jiejia Weichuang (300724): down 0.30%, weight 2.26% [4]

Summary of Conference Call on Photovoltaic Industry's Anti-Competition Measures Industry Overview - The conference focused on the photovoltaic (PV) industry, particularly discussing the recent anti-competition measures and market dynamics within the sector [1][2]. Key Points and Arguments 1. **Market Recovery and Policy Support**: The market has shown a positive recovery, driven by recent policy announcements aimed at eliminating barriers to a unified national market and addressing excessive competition [1][2]. 2. **Formation of Industry Alliances**: 17 leading companies in the silicon material sector are forming a coalition to stabilize prices and reduce production capacity, with expectations to complete this by the end of the year [2][3]. 3. **Price Recovery Indicators**: The third quarter has shown signs of improvement in the PV supply chain, particularly due to the recovery in prices of silicon materials, which is expected to continue as production cuts are anticipated in November [3][4]. 4. **Impact of Policy Changes**: The introduction of stricter regulations against below-cost pricing has led to a significant increase in silicon prices, from around 30,000 to over 50,000 [6][15]. 5. **Performance of Key Companies**: Major companies like Xiexin and Tongwei reported significant improvements in their financial performance in Q3, indicating a recovery in the industry [8][18]. 6. **Investment Recommendations**: Analysts recommend focusing on companies with strong cyclical attributes in the silicon material and PV glass sectors, including Tongwei, Daqo, and Xiexin [9][23]. 7. **Technological Advancements**: The industry continues to see technological progress, which is expected to create a competitive edge for companies that can innovate and maintain high margins [9][20]. 8. **Long-term Market Dynamics**: The anticipated supply-side reforms in the silicon sector are expected to lead to a more balanced supply-demand situation, which will benefit downstream companies and prevent a return to cutthroat competition [19][21]. Additional Important Insights - **Regulatory Environment**: The government's commitment to creating a unified market and addressing local protectionism is crucial for the long-term health of the PV industry [7][22]. - **Market Sentiment**: The recent media coverage and government announcements have sparked renewed investor interest and optimism regarding the anti-competition measures [2][4]. - **Financial Health of the Sector**: Many companies are showing signs of financial recovery, with improved profit margins and reduced losses compared to previous quarters [8][22]. This summary encapsulates the key discussions and insights from the conference call regarding the photovoltaic industry's current state and future outlook, emphasizing the importance of policy support and industry collaboration in fostering a healthier market environment.

Core Viewpoint - The photovoltaic industry is experiencing a significant performance restructuring, with major companies in key sectors such as equipment, inverters, junction boxes, and mounting brackets facing declining profits and some even reporting losses, indicating a shift in the industry's profitability logic [1] Equipment Sector - Equipment suppliers are seeing the most pronounced decline, with several leading companies reporting both revenue and net profit decreases in Q3 [2] - Jiejia Weichuang (捷佳伟创) reported Q3 revenue of 4.734 billion yuan, a decrease of 17.26% year-on-year, and net profit of 858 million yuan, a sharp decline from previous growth rates [2] - Jing Sheng Machinery (晶盛机电) experienced a dramatic drop in Q3 revenue to 2.474 billion yuan, down 42.87%, and net profit of 262 million yuan, down 69.65% [2] - Maiwei Co., Ltd. (迈为股份) reported Q3 revenue of 1.991 billion yuan, a decline of 31.3%, and net profit of 269 million yuan, down 9.42% [4][5] - Aotewei (奥特维) saw its Q3 revenue drop to 1.292 billion yuan, down 48.65%, with net profit plummeting 90.04% to 50 million yuan [6] Inverter Sector - The inverter industry is experiencing a bifurcated performance, with some companies like Sungrow (阳光电源) and GoodWe (固德威) reporting significant profit increases, while others face profit declines [7] - Sungrow achieved a net profit of 4.147 billion yuan in Q3, up 57.04% year-on-year, while GoodWe's net profit surged by 200.83% [7] - Conversely, companies like Jinlang Technology (锦浪科技) and Deye (德业股份) reported net profit declines of 16.85% and 17.84%, respectively [7] Junction Box Sector - The junction box sector has also seen significant profit declines, with Zairun New Energy (泽润新能) reporting a net loss of approximately 3.856 million yuan in Q3, a 115.93% year-on-year drop [8] - Kuai Ke Electronics (快可电子) reported Q3 revenue of 328 million yuan, up 66.1%, but net profit decreased by 64.47% [8] Mounting Bracket Sector - The mounting bracket sector is facing similar challenges, with Qingyuan Co. (清源股份) reporting Q3 revenue of 470 million yuan, a 5.47% increase, but net profit down 73.94% [8] - Leading company Zhongxinbo (中信博) reported a net profit decline of 74.49% year-on-year, with Q3 losses reaching 48.39 million yuan, a 119.76% drop [9][10] Overall Industry Outlook - The overall profitability of the photovoltaic equipment, inverter, junction box, and mounting bracket sectors is declining, with industry experts indicating that the stability of returns from photovoltaic power stations is not as strong as before, complicating investment decisions [10]

Core Insights - The retail monitoring by AVC indicates a general decline in major appliances since September, with a significant drop in retail for cleaning appliances in October, although there is still substantial growth compared to the same period in 2023 [1][2] - The industry has anticipated these trends, as evidenced by production data showing a cautious attitude with air conditioning production down by -11.5%, -8.4%, and -9.9% for October, November, and December respectively compared to the previous year [1][2] - The demand for appliance upgrades is expected to be the main driver, with short-term impacts from subsidy exhaustion; however, the penetration rate of cleaning appliances continues to rise, suggesting growth potential in the retail market through 2026 [1][2] Market Trends - The consumer electronics market is highly competitive, with Xiaomi upgrading its air conditioning warranty to 10 years, which has helped maintain its retail market share despite negative publicity from its automotive ventures [3] - The smart lawn mower market is gaining attention, with multiple companies entering, leading to intense competition; major players in the vacuum market have also launched similar products [3] - DJI is aggressively pricing its action cameras and drones, likely in response to competition from other brands entering the drone market [3] Company Performance - Ugreen Technology has benefited from a surge in demand for power banks following safety incidents, reporting a revenue of 2.51 billion yuan in Q3 2025, a year-on-year increase of 60.4% [4] Export Market Dynamics - The export market is seeing a shift in production capacity, with a recovery in heat pump exports; the U.S. has announced additional tariffs on Chinese imports, prompting companies to accelerate global production strategies [5] - Data indicates a 22.5% year-on-year increase in heat pump exports from January to August 2025, driven by low comparative bases and upcoming heating seasons in Europe [5] Investment Recommendations - The current market is active, with traditional appliance leaders lacking growth potential; technology-related companies are performing better [6] - Recommended stocks include Stone Technology, Ecovacs, and Ugreen Technology for their growth prospects, alongside undervalued companies like Midea Group and Haier Smart Home that have successfully digitized their offline channels [6]

Core Viewpoint - The report from Dongwu Securities indicates that Deye Co., Ltd. achieved a net profit attributable to shareholders of 2.347 billion yuan in Q1-Q3 2025, representing a year-on-year increase of 4.79%. However, the net profit for Q3 2025 was 825 million yuan, showing a year-on-year decrease of 17.84% but a quarter-on-quarter increase of 1.00%, slightly below expectations [1] Financial Performance - For Q1-Q3 2025, the net profit attributable to shareholders was 2.347 billion yuan, up 4.79% year-on-year [1] - In Q3 2025, the net profit was 825 million yuan, down 17.84% year-on-year but up 1.00% quarter-on-quarter, indicating a slight underperformance compared to expectations [1] - As of Q3 2025, the company's inventory stood at 1.449 billion yuan, an increase of 4.99% year-on-year [1] - Contract liabilities amounted to 325 million yuan, reflecting a year-on-year decrease of 37.90% [1] Business Outlook - The inverter and battery pack shipments are expected to continue to grow quarter-on-quarter in Q4 2025 [1] - High demand in the Australian market in 2026 is anticipated to drive significant growth in the company's household storage inverters and battery pack shipments [1] Valuation - Given the company's steady growth and the gradual ramp-up of industrial storage, a target price of 110 yuan is set based on a 25x PE ratio for 2026, maintaining a "Buy" rating [1]