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]

Group 1 - The electric grid equipment sector experienced a majority of adjustments at the beginning of trading on October 17, with several companies showing significant declines [1] - Huaming Equipment, Guodian Nanzi, and Jinpan Technology saw drops exceeding 7%, indicating a notable downturn in their stock performance [1] - Other companies such as Zhongdian Xinlong, Tongda Co., and Teruid also followed the downward trend, reflecting a broader impact on the sector [1]

Core Viewpoint - The power grid equipment sector is experiencing a downward adjustment, with several companies seeing significant declines in their stock prices [1] Group 1: Company Performance - Huaming Equipment, Guodian Nanzi, and Jinpan Technology have all dropped over 7% in stock price [1] - Other companies such as Zhongdian Xilong, Tongda Co., and Teruid have also followed the downward trend [1]

Summary of Key Points from the Conference Call Industry and Company Involved - The discussion revolves around the **data center industry** and **NVIDIA**'s new **800V DC power supply white paper**. Core Insights and Arguments - **Power Supply Challenges**: Traditional 48V power supply solutions face issues such as heat dissipation and high current in large-scale applications. NVIDIA recommends an **800V power supply solution** which has been successfully applied in charging stations and energy storage sectors, indicating a level of maturity [1][2] - **Proposed Power Supply Solutions**: The white paper outlines four main power supply solutions: 1. **Existing 50V Architecture**: Utilizes UPS and PSU to convert AC to 48-54V DC for server power [2] 2. **Modification of Existing Solutions**: Retains UPS while adding rectifiers to convert mains power to 800V DC [6] 3. **New Data Center Solutions**: Eliminates UPS, using energy storage systems for backup and load smoothing [6] 4. **Centralized Power Supply Solutions**: Employs larger power modules (60kW to over 100kW) for efficiency and reduced cabinet numbers [6][11] - **Energy Storage Systems**: These systems play a crucial role in smoothing load fluctuations, reducing electricity costs, and addressing carbon emissions. NVIDIA suggests two complementary energy storage systems for data centers [10] - **Solid-State Transformers (SST)**: SSTs are highlighted for their compact size and high efficiency, although they face risks due to high voltage modules. Companies like Jindian Technology are collaborating with NVIDIA for prototype development [3][7][15] Additional Important Insights - **Panama Power Solution**: This solution is noted for its maturity and reliability compared to competitors like Siercon, indicating potential for expansion in the North American market [12][13] - **Impact of AI Data Center Construction**: The acceleration of AI data center construction in the U.S. is expected to significantly increase energy storage demand, benefiting companies like Sierce, Magmite, and Oton [14] - **Future of SST in Data Centers**: While SSTs are not yet widely adopted, their advantages suggest a gradual integration into data centers as the technology matures [8][16] - **Market Competitors**: Companies such as Jindian Technology, Igor, Sifang Co., and Xinte Electric are noted for their competitive advantages in the SST field, with Jindian Technology projected to achieve significant revenue from data center applications by 2026 [17] This summary encapsulates the key points discussed in the conference call, focusing on the advancements in power supply solutions for data centers and the implications for the industry and related companies.

Group 1 - The Hainan Free Trade Zone concept rose by 2.58%, ranking first among concept sectors, with 22 stocks increasing, including Haixia Co., Haima Automobile, and ST Huawen hitting the daily limit [1][2] - Notable gainers included Haikou Group, Hainan Haiyao, and Kangzhi Pharmaceutical, which rose by 6.38%, 6.14%, and 5.69% respectively [1] - The stocks with the largest declines were Hainan Huatie, Junda Co., and *ST Shuangcheng, which fell by 1.30%, 1.23%, and 1.06% respectively [1] Group 2 - The Hainan Free Trade Zone concept saw a net inflow of 358 million yuan from main funds, with 18 stocks receiving net inflows, and 6 stocks exceeding 50 million yuan [2] - The top net inflow stock was Haixia Co., with a net inflow of 108 million yuan, followed by HNA Holding, Hainan Development, and Haide Co. with net inflows of 89.09 million yuan, 82.73 million yuan, and 64.19 million yuan respectively [2][3] - The highest net inflow ratios were seen in Haide Co., ST Huawen, and Hainan Haiyao, with ratios of 14.30%, 13.37%, and 12.49% respectively [3] Group 3 - The top stocks in the Hainan Free Trade Zone concept included Haixia Co. with a daily increase of 10.03% and a turnover rate of 6.55%, followed by HNA Holding with a 1.80% increase and a turnover rate of 2.30% [3][4] - Other notable performers included Hainan Development with a 2.99% increase and a turnover rate of 8.46%, and Haikou Group with a 6.38% increase and a turnover rate of 7.54% [4] - Stocks such as Hainan Huatie and Junda Co. experienced declines of 1.30% and 1.23% respectively, with negative main fund flows [4]

Core Points - Hainan Jinpan Intelligent Technology Co., Ltd. has been awarded the "Hainan Provincial Government Quality Award" for its outstanding quality management and digital transformation achievements, marking its second win since 2016 [1][2] - The establishment of the Hainan Provincial Government Quality Award aims to promote quality improvement and industrial development, supporting the construction of Hainan Free Trade Port [1] Company Summary - Jinpan Technology is recognized as a national manufacturing single champion demonstration enterprise and a national-level enterprise technology center, emphasizing quality as its lifeline and aligning with the national quality strategy [2] - The company has developed a "123+N" digital quality management model, integrating AI technology into its manufacturing processes to enhance production efficiency and product quality [2] - Jinpan Technology is committed to green development and social responsibility, aiming to drive regional industrial upgrades through digital solutions while balancing economic and social benefits [2] - The company plans to deepen the integration of digitalization, intelligence, and green low-carbon manufacturing to provide sustainable solutions for global customers and promote collaborative development across the industry chain [2]

Market Overview - The Shanghai Composite Index recovered above 3900 points with a trading volume of 2.09 trillion yuan, a decrease of over 500 billion yuan compared to the previous trading day [1] - More than 4300 stocks closed higher, with 83 stocks hitting the daily limit [1] - Sectors such as cell immunotherapy and PEEK materials saw significant gains, while sectors like military equipment restructuring and genetically modified organisms faced declines [1] Historical Highs - A total of 38 stocks reached historical closing highs today, excluding newly listed stocks from the past year [2] - Industries with the most stocks hitting new highs include machinery (7 stocks), electric equipment (6 stocks), and electronics (5 stocks) [2] - The average increase for stocks that reached historical highs was 6.70%, with notable gainers including Jinpan Technology and Matrix Shares [2] Top Gainers - The top gainers among stocks that reached historical highs include: - Litu Hydraulic (21.67% increase, closing at 58.90 yuan) [3] - Jinpan Technology (20.00% increase, closing at 69.41 yuan) [3] - Matrix Shares (20.00% increase, closing at 23.70 yuan) [3] - Other significant gainers include He Xin Instrument and Changjian Group, with increases of 11.18% and 10.01% respectively [3] Institutional Activity - In today's trading, 15 stocks saw net buying from institutions, with Jinpan Technology and Xiangrikui leading with net purchases of 193 million yuan and 131 million yuan respectively [5] - Conversely, Wen Tai Technology experienced the largest net sell-off by institutions, totaling 208 million yuan [5] Northbound Capital Flow - Northbound funds recorded net selling in 15 stocks, with the largest outflow from Shanzi High-Tech at 439 million yuan [7] - Wen Tai Technology also faced significant net selling, amounting to 302 million yuan [7] Company Announcements - Yangyuan Beverage announced a capital increase of 1 billion yuan to private equity fund Quan Hong Investment, which holds 0.98% of Yangtze Memory Technologies [9] - Guanghua Technology reported a net profit of 90.39 million yuan for the first three quarters, marking a year-on-year increase of 1233.70% [9] - China Ruilin plans to establish a 2 billion yuan fund focused on tungsten and rare earth projects [11]