Market Overview - The Hainan Free Trade Zone concept declined by 0.80%, ranking among the top declines in concept sectors as of the market close on October 27 [1] - Within the sector, Haikou Group, Kangzhi Pharmaceutical, and Haixia Co. saw significant declines, while nine stocks experienced price increases, with Jinpan Technology, Junda Co., and *ST Shuangcheng leading the gains at 4.44%, 1.64%, and 1.62% respectively [1] Sector Performance - The top-performing concept sectors today included: - Storage Chips: +3.49% - AI PC: +3.20% - National Big Fund Holdings: +3.01% - Conversely, sectors such as E-sports and Hainan Free Trade Zone experienced declines of -0.84% and -0.80% respectively [1] Capital Flow - The Hainan Free Trade Zone concept saw a net outflow of 458 million yuan, with 17 stocks experiencing net outflows, and six stocks seeing outflows exceeding 30 million yuan [1] - Haixia Co. led the net outflow with 259.24 million yuan, followed by Gongxiao Daji, Haikou Group, and ST Huawen with outflows of 94.14 million yuan, 65.09 million yuan, and 57.09 million yuan respectively [1][2] Notable Stocks - Stocks with significant net inflows included: - Jinpan Technology: +65.42 million yuan - Caesar Travel: +36.09 million yuan - Hainan Huatie: +26.97 million yuan [1][2] - Other notable stocks with declines included: - Haixia Co.: -4.15% - Haikou Group: -4.74% - ST Huawen: -4.01% [2]

Core Viewpoint - The article discusses the recent developments in the U.S. power generation landscape, highlighting the transition towards natural gas and renewable energy sources, and the implications for the semiconductor and AI industries, particularly in relation to solid-state transformers (SST) [3][9][16]. U.S. Power Generation Status - The U.S. power generation structure is shifting towards natural gas and renewable energy, with solar and battery storage growing rapidly [9]. - As of the end of 2024, coal-fired power generation capacity is projected to be 188.95 GW, down from 314 GW in 2011, indicating a significant decline in the coal industry [10]. - Natural gas generation capacity is expected to reach 571.23 GW by 2024, constituting 43.12% of the total capacity, but new installations are limited due to supply chain issues [11]. - Nuclear power capacity stands at 103.58 GW, with a 2.9% year-on-year increase, but new nuclear plants have not been built in nearly 40 years [12][13]. - Renewable energy capacity is projected to reach 313 GW by the end of 2024, with wind and solar accounting for 80% of new installations, although their effective contribution is limited compared to traditional power sources [14][15]. SST Industry Development Trends - The demand for solid-state transformers (SST) is increasing as they address the challenges faced by data centers, particularly in reducing power consumption and space [16]. - The SST market is currently dominated by non-mainland manufacturers, with companies like Eaton and Delta leading the way [17]. - The estimated market size for SST in North America from 2026 to 2030 is projected to grow significantly, reaching 265 billion RMB by 2030 [18]. Valuation Analysis - The SST industry is expected to have a net profit margin of around 30-40% from 2026 to 2030, with projected net profits increasing from 6.4 billion RMB in 2026 to 79.5 billion RMB in 2030 [19]. - The estimated market capitalization for the SST industry could reach up to 1.59 trillion RMB by 2030, based on average valuation multiples [19]. A-Share Core Company Valuation - Companies like Jinqiao Technology and Kingpan Technology are positioned to benefit from the SST market, with projected net profits of over 8 billion RMB and 17 billion RMB respectively by 2027 [21][23].

Market Performance - The grid equipment sector increased by 1.36% compared to the previous trading day, with Zhongyuan Co., Ltd. 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] Top Gainers in Grid Equipment Sector - Zhongyuan Co., Ltd. (300018) closed at 11.90, up 8.58% with a trading volume of 644,500 shares and a transaction value of 752 million [1] - Kelu Electronics (002121) closed at 9.50, up 8.45% with a trading volume of 1,170,200 shares and a transaction value of 1.092 billion [1] - Zhiyang Innovation (161889) closed at 32.25, up 8.44% with a trading volume of 65,100 shares and a transaction value of 206 million [1] - Jinpan Technology (688676) closed at 64.63, up 8.31% with a trading volume of 248,800 shares and a transaction value of 1.568 billion [1] Top Losers in Grid Equipment Sector - Wuchuang Ruitong (301668) closed at 62.45, down 9.88% with a trading volume of 119,500 shares and a transaction value of 762 million [2] - Future Electric (301386) closed at 25.50, down 3.15% with a trading volume of 74,900 shares and a transaction value of 192 million [2] - Zhongneng Electric (300062) closed at 6.06, down 2.42% with a trading volume of 496,800 shares and a transaction value of 303 million [2] Capital Flow Analysis - The grid equipment sector saw a net inflow of 101 million from main funds, while speculative funds experienced a net outflow of 285 million, and retail investors had a net inflow of 184 million [2] - Key stocks with significant capital flow include: - Siyuan Electric (002028) with a main fund net inflow of 90.60 million, accounting for 9.85% [3] - China West Electric (601179) with a main fund net inflow of 60.28 million, accounting for 7.80% [3] - Kelu Electronics (002121) with a main fund net inflow of 56.72 million, accounting for 5.20% [3]

Core Points - The energy storage index experienced a decline, with a daily drop of 2.01% on October 23 [1] - Among the constituent stocks, Haibosi Chuang led the decline with a drop of 5.24%, followed by Shenghong Co., Jinpan Technology, Keda, and Yihuatong-U [1] Company Performance - Haibosi Chuang reported the largest decline among the energy storage stocks, falling by 5.24% [1] - Other companies such as Shenghong Co., Jinpan Technology, Keda, and Yihuatong-U also experienced declines, contributing to the overall negative performance of the sector [1] Industry Trends - The energy storage sector is currently facing downward pressure, as indicated by the overall index decline and the performance of key companies [1]

Group 1 - The core viewpoint of the news is that Jinpan Technology's stock has seen a significant increase, with a rise of 5.43% to 67.62 CNY per share, and a total market capitalization of 31.09 billion CNY [1] - Jinpan Technology, established on June 3, 1997, primarily engages in the research, production, and sales of power distribution and control equipment, focusing on sectors such as renewable energy, high-end equipment, and energy conservation [1] - The company's revenue composition includes: 87.05% from power distribution equipment, 9.59% from energy storage series, 1.90% from photovoltaic power station business, 0.73% from installation engineering, 0.54% from other supplementary services, and 0.19% from digital overall solutions [1] Group 2 - From the perspective of major fund holdings, Shenyin Wanguo Fund has a significant position in Jinpan Technology, with its Shenyin Wanguo Dual Benefit Mixed A Fund holding 70,100 shares, accounting for 0.74% of the fund's net value [2] - The fund has achieved a floating profit of approximately 244,000 CNY as of the latest report [2] - The Shenyin Wanguo Dual Benefit Mixed A Fund was established on October 27, 2021, with a current scale of 295 million CNY and has recorded a year-to-date return of 8.23% [2]

Group 1 - The core viewpoint of the news is that Jinpan Technology's stock has increased by 5.43%, reaching a price of 67.62 CNY per share, with a trading volume of 775 million CNY and a turnover rate of 2.57%, resulting in a total market capitalization of 31.09 billion CNY [1] - Jinpan Technology, established on June 3, 1997, and listed on March 9, 2021, primarily engages in the research, production, and sales of power distribution and control equipment for sectors such as renewable energy, high-end equipment, and energy conservation [1] - The company's revenue composition includes: 87.05% from power distribution equipment, 9.59% from energy storage series, 1.90% from photovoltaic power station business, 0.73% from installation engineering, 0.54% from other (supplementary), and 0.19% from digital overall solutions [1] Group 2 - From the perspective of major circulating shareholders, Southern Fund has a fund that ranks among the top shareholders of Jinpan Technology, specifically the Southern CSI 500 ETF (510500), which entered the top ten shareholders in the second quarter with 4.0169 million shares, accounting for 0.87% of circulating shares [2] - The Southern CSI 500 ETF has a total scale of 113.438 billion CNY and has achieved a return of 25.22% this year, ranking 1830 out of 4218 in its category; over the past year, it has returned 27.01%, ranking 1640 out of 3868 [2]

Core Viewpoint - Jinpan Technology's stock has shown significant growth this year, with a year-to-date increase of 56.75% and a recent surge in trading activity, indicating strong investor interest and potential market confidence [1][2]. Company Overview - Jinpan Technology, established on June 3, 1997, and listed on March 9, 2021, is based in Haikou, Hainan Province. The company specializes in the research, production, and sales of power distribution and control equipment, primarily serving the renewable energy, high-end equipment, and energy-saving sectors [2]. - The company's revenue composition includes: 87.05% from power distribution equipment, 9.59% from energy storage series, 1.90% from photovoltaic power station business, 0.73% from installation engineering, 0.54% from other services, and 0.19% from digital solutions [2]. Financial Performance - For the first half of 2025, Jinpan Technology reported a revenue of 3.154 billion yuan, reflecting a year-on-year growth of 8.16%. The net profit attributable to shareholders was 265 million yuan, marking a 19.10% increase compared to the previous year [2]. - Since its A-share listing, the company has distributed a total of 713 million yuan in dividends, with 543 million yuan distributed over the past three years [3]. Shareholder Structure - As of June 30, 2025, the number of shareholders increased to 18,400, with an average of 24,939 shares held per shareholder, a slight decrease of 1.06% from the previous period [2]. - Notable changes in institutional holdings include Hong Kong Central Clearing Limited entering as the fourth-largest shareholder with 12.7274 million shares, and South China Securities 500 ETF entering as the tenth-largest shareholder with 4.0169 million shares [3].

Market Overview - The grid equipment sector experienced a decline of 5.71% on the previous trading day, with Jinpan Technology leading the drop [1] - The Shanghai Composite Index closed at 3839.76, down 1.95%, while the Shenzhen Component Index closed at 12688.94, down 3.04% [1] Stock Performance - Notable stock performances in the grid equipment sector included: - Wu Chuang Rui Tong (301668) closed at 54.30, up 2.69% with a trading volume of 115,400 shares and a transaction value of 658 million [1] - Baiyun Electric (603861) closed at 12.22, up 1.58% with a trading volume of 782,900 shares and a transaction value of 947 million [1] - Jinpan Technology (688676) closed at 62.82, down 12.32% with a trading volume of 363,800 shares and a transaction value of 2.375 billion [2] Capital Flow - The grid equipment sector saw a net outflow of 5.197 billion from institutional investors, while retail investors contributed a net inflow of 3.983 billion [2][3] - Specific stock capital flows included: - Baiyun Electric had a net inflow of 72.58 million from institutional investors, while retail investors had a net outflow of 97.64 million [3] - Wu Chuang Rui Tong experienced a net inflow of 30.72 million from institutional investors, with retail investors seeing a net outflow of 23.42 million [3]

Investment Rating - The industry investment rating is "Overweight" [2][45] Core Viewpoints - As of October 16, 2025, the power equipment industry has seen a decline of 2.84% over the past two weeks, underperforming the CSI 300 index by 2.36 percentage points, ranking 26th among 31 industries [4][11] - The cumulative installed capacity of new energy storage in China is expected to reach over 180GW by 2027 and 300GW by 2030, with the industry chain and supply chain output value projected to reach 2-3 trillion yuan by 2030 [34][39] - The global energy storage market is anticipated to maintain strong growth, with a cumulative installed capacity of approximately 730GW/1950GWh by the end of 2030 [34][39] Summary by Sections Market Review - The power equipment sector has increased by 39.62% year-to-date, outperforming the CSI 300 index by 22.25 percentage points, ranking 4th among 31 industries [4][11] - The wind power equipment sector increased by 0.07%, the photovoltaic equipment sector by 1.14%, and the grid equipment sector by 5.76% in the last two weeks [16][17] Valuation and Industry Data - As of October 16, 2025, the price-to-earnings (PE) ratio for the power equipment sector is 34.67 times, with sub-sectors showing varying PE ratios: electric motors at 62.87 times, photovoltaic equipment at 26.89 times, and battery sector at 35.51 times [22][23] Industry News - In the first nine months of 2025, China's new energy storage overseas orders totaled 214.7GWh, a year-on-year increase of 131.75%, with over 30GWh in September alone [34][39] - The National Energy Administration has emphasized the importance of user-side network security management to prevent power outages caused by user-side issues [34][35] Company Announcements - Several companies reported significant changes in net profit for the first three quarters of 2025, with notable increases for companies like Jinko Technology and Tongda Co., while others like Shida Shenghua reported substantial losses [36][37] Weekly Perspective on Power Equipment Sector - The report suggests focusing on leading storage companies benefiting from the booming storage industry, emphasizing technological and scale advantages [39][40]

Group 1 - The data center power supply sector experienced a significant decline in early trading on October 17, with several companies hitting their daily limit down [1] - Companies such as Igor and Zhongheng Electric reached their limit down, while Jinpan Technology fell nearly 10% [1] - Other companies in the sector, including Kelon Electronics, Yingweik, Sunshine Power, Shenghong Co., and Magmi Tech, also reported notable declines [1]