Investment Rating - The investment rating for the company is "Buy" and is maintained [6] Core Views - The company reported a revenue of 3.733 billion yuan for the first half of 2025, representing a year-on-year growth of 0.06%. The net profit attributable to the parent company was 244 million yuan, up 7.94% year-on-year, while the net profit excluding non-recurring items was 224 million yuan, an increase of 9.22% year-on-year [2][4] - In the second quarter, the company achieved a revenue of 2.516 billion yuan, a decrease of 1.19% year-on-year, with a net profit of 175 million yuan, up 14.81% year-on-year, and a net profit excluding non-recurring items of 162 million yuan, an increase of 12.19% year-on-year [2][4] - The data center business showed significant growth, with product revenue reaching 784 million yuan, a year-on-year increase of 34.19%, and a gross margin of 36.06%, which improved by 0.11 percentage points. The IDC service revenue was 613 million yuan, a slight increase of 0.15% year-on-year, but the gross margin decreased by 5.01 percentage points to 20.77% [10] - The renewable energy business reported a revenue of 1.852 billion yuan, down 4.22% year-on-year, with a gross margin of 17.51%, which improved by 0.63 percentage points. The smart energy product revenue was 439 million yuan, a decline of 22.56% year-on-year, but the gross margin increased by 1.93 percentage points to 36.39% [10] - The company is expected to benefit from the rapid expansion of global data center infrastructure demand, with a projected revenue growth of over 50% for data center products in 2025. The IDC business is anticipated to continue its growth trajectory, and the renewable energy business is expected to improve profitability due to increasing global demand and reduced impairment losses [10]

Core Viewpoint - Kehua Data's stock price reached a new high of 70.99 yuan per share, with a market capitalization exceeding 36.589 billion yuan, indicating strong investor interest and confidence in the company [2]. Group 1 - Kehua Data's stock increased by 0.91% on September 16 [2]. - The total trading volume for Kehua Data reached 830 million yuan [2].

Group 1 - The core viewpoint of the news is that Kehua Data's stock has shown significant growth this year, with a year-to-date increase of 139.07% and a recent surge of 23.92% over the last five trading days [1] - As of September 16, Kehua Data's stock price was 68.90 yuan per share, with a market capitalization of 35.512 billion yuan and a trading volume of 1.544 billion yuan [1] - The company has seen a net inflow of main funds amounting to 72.9216 million yuan, with large orders contributing significantly to both buying and selling activities [1] Group 2 - Kehua Data's main business segments include new energy products (49.62%), data center products (21.01%), IDC service revenue (16.43%), and smart power products (11.77%) [1] - The company is classified under the power equipment industry, specifically in the category of other power supply equipment [2] - As of September 10, the number of shareholders decreased by 21.05% to 75,000, while the average circulating shares per person increased by 26.67% to 6,062 shares [2] Group 3 - Since its A-share listing, Kehua Data has distributed a total of 1.385 billion yuan in dividends, with 130 million yuan distributed over the past three years [3] - As of June 30, 2025, the top ten circulating shareholders include Hong Kong Central Clearing Limited and several mutual funds, with notable changes in their holdings [3]

Investment Rating - The report maintains a "Buy" rating for the power equipment sector [7][18]. Core Insights - The demand for overseas computing power has exceeded expectations, leading to a significant acceleration in the domestic ecosystem [5][6]. - The AI computing infrastructure is experiencing a dual resonance of supply and demand, with the liquid cooling server industry poised for a clear breakout point [15][16]. - Major cloud service providers are expected to invest heavily in liquid cooling technology due to the advanced process of the new generation of chips [5][15]. - The domestic AI industry chain is becoming increasingly competitive, with significant fundraising efforts by leading companies to enhance their capabilities [6][16]. Summary by Sections Investment Viewpoints - The report highlights strong AI beta resonance across various companies, from established overseas firms to domestic players [17]. - The power generation sector is identified as a logical area for growth, with specific recommendations for companies such as KOTAI Power and AIDC leasing firm Hongjing Technology [7][17]. Industry Dynamics - The report notes that the global capital expenditure for data center infrastructure is projected to reach $3-4 trillion over the next five years [15]. - Oracle's latest financial report anticipates a 77% surge in cloud infrastructure revenue, indicating robust market demand [5][15]. - The report also discusses the recent approval of large-scale fundraising by domestic AI companies, which is expected to enhance their competitive edge [6][16]. Key Companies and Earnings Forecast - The report provides a detailed earnings forecast for several companies in the power equipment sector, including: - KOTAI Power (Buy) - Yingweike (Buy) - Macromit (Buy) - Shunling Environment (Buy) - Hewei Electric (Buy) [10][20][19].

Summary of Kehua Data Conference Call Company Overview - Kehua Data is the second-largest uninterruptible power supply (UPS) manufacturer in China, with a market share of 13%, following Huawei's 18% [doc id='12'] - The company was founded in 1988 in Fujian Province and went public in 2010 on the Shenzhen Stock Exchange [doc id='62'] - Kehua has expanded its sales network to over 30 countries and established long-term partnerships with major clients, including leading hyperscale cloud providers [doc id='62'] Industry Insights - The global AIDC (AI Data Center) capital expenditure is expected to accelerate, benefiting UPS and energy storage sectors [doc id='9'] - The global UPS and HVDC (High Voltage Direct Current) market is projected to reach $8.4 billion by 2028 [doc id='9'] - The global energy storage demand is forecasted to grow at a CAGR of 22% from 2025 to 2027, reaching 338 GWh by 2027 [doc id='3'] Key Financial Projections - Kehua's earnings per share (EPS) is expected to grow at a CAGR of 37% from 2025 to 2027, driven by increased AIDC capital expenditures and new product launches [doc id='12'] - Revenue from data center products is projected to grow at a CAGR of 37% during the same period [doc id='2'] - The company's renewable energy business, which includes energy storage and photovoltaic inverters, is expected to achieve a CAGR of 19% from 2025 to 2027 [doc id='3'] Product and Market Strategy - Kehua is focusing on expanding its overseas market presence, particularly in the energy storage sector, to capture strong demand [doc id='3'] - The company has established a strong relationship with major hyperscale cloud providers, with 50% of its UPS sales coming from these clients [doc id='13'] - Kehua's new HVDC products are expected to penetrate overseas markets, enhancing its competitive position [doc id='21'] Valuation and Investment Rating - Kehua is rated as a "Buy" with a target price of RMB 78.5, implying a 40x PE ratio for 2026E, which is considered reasonable compared to industry peers [doc id='4'] - The current stock price is RMB 57.05, reflecting a PE ratio of 29x for 2026E, which is below the average of 40x for similar companies in the A-share market [doc id='46'] Risks and Catalysts - Potential risks include market fluctuations and the impact of policy changes on domestic demand for energy storage [doc id='36'] - Positive catalysts for stock price appreciation include increased orders from hyperscale cloud providers and successful commercialization of new products [doc id='48'] Conclusion - Kehua Data is well-positioned to benefit from the growing demand for UPS and energy storage solutions driven by the AIDC investment boom and its strong relationships with major clients [doc id='12']

Summary of AIDC Power Supply Systems Conference Call Industry Overview - The conference focused on the **AI Data Centre (AIDC)** power supply systems, highlighting the rapid evolution of AI and machine learning workloads, which are driving significant changes in power distribution and supply systems [3][11][24]. Key Insights 1. **Market Growth Projections** - AIDC power systems are projected to grow at a **25% CAGR** from 2025 to 2028, reaching a market size of **US$24 billion** [3][11]. - The largest segments within AIDC equipment include **Power Supply Units (PSU)** at **US$9.7 billion**, followed by **UPS + HVDC** at **US$8.4 billion**, **Diesel Power Generators** at **US$5.6 billion**, and **Battery Backup Units (BBU)** at **US$0.4 billion** [3][15]. 2. **Technological Transitions** - Key trends identified include **high-voltage conversion**, **direct current deployment**, **higher power density**, and **modular architecture** [3][4]. - **HVDC (High-Voltage Direct Current)** systems are expected to see a **94% CAGR** from 2024 to 2028, increasing their market share from **10% to 40%** [4][9][12]. 3. **Chinese Suppliers' Competitive Advantage** - Chinese companies are positioned to gain market share due to **lower costs** and **technological advancements**, particularly those with partnerships with overseas hyperscalers [5][20]. - The report suggests that aligning with hyperscaler demand early is crucial for rapid supply chain penetration [9][20]. 4. **Demand for Backup Power** - There is an anticipated boom in demand for backup power and power supply units, driven by the increasing power density and efficiency requirements of AIDCs [4][15]. 5. **Investment Trends** - North American hyperscalers (Meta, Amazon, Microsoft, Google) are expected to invest over **US$388.8 billion** in 2025, rising to **US$458.1 billion** in 2026 [27]. - Chinese hyperscalers (Alibaba, Tencent, Baidu) are projected to increase their capex to **US$31.9 billion** in 2025 and **US$32.8 billion** in 2026 [27]. Additional Insights 1. **Power Supply Unit (PSU) Evolution** - The efficiency of AI power shelves is increasing, with current power shelves achieving **97.5%-98% efficiency**, compared to **96%** for non-AI power shelves [75]. - The market for PSUs is dominated by Taiwanese companies, but mainland Chinese companies are catching up [77]. 2. **Solid State Transformers (SST)** - SSTs are expected to become the third-generation technology in power supply systems, combining transformer and HVDC functions, with commercialisation anticipated to begin in **2027** [69][70]. 3. **Competitive Landscape** - The AIDC market is currently dominated by established players like **Schneider**, **Eaton**, and **Vertiv**, but there is room for new entrants with strong technological capabilities [82][88]. - Companies like **Kehua** and **Sungrow** are highlighted as favorable investment opportunities due to their strong market positions and growth potential [9][92]. 4. **Valuation and Market Sentiment** - Despite an **86% YTD rally**, the sector is trading at a **31x 2026E PE**, which is considered undemanding given the forecasted **33% CAGR** in sector EPS from 2025 to 2027 [9][92]. Conclusion The AIDC power supply systems market is poised for significant growth driven by technological advancements and increasing demand from hyperscalers. Chinese suppliers are well-positioned to capitalize on these trends, and investment opportunities exist in companies that are innovating and expanding their market reach.

Investment Rating - The investment rating for the industry is "Strongly Recommended" for key companies such as Ningde Times, Yiwei Lithium Energy, and Sunshine Power [3]. Core Insights - The domestic energy storage policy continues to strengthen, with demand expected to exceed expectations and be sustainable. The National Development and Reform Commission and the Energy Administration have issued a plan to increase the new energy storage installed capacity to over 180GW by 2027, which will double the current capacity within the next two and a half years [1][8][12]. - The bidding scale for the domestic energy storage market reached a historical high of 25.8GW/69.4GWh in August 2025, indicating a robust demand outlook despite previous concerns following the cancellation of mandatory energy storage requirements [14]. Industry Policy - The new energy storage capacity pricing mechanism is being established, with various provinces implementing supportive policies. For instance, the pricing standard for new energy storage capacity is set at 100 yuan/kW/year from October to December 2025, increasing to 165 yuan/kW/year from January 2026 [9][11]. - The cancellation of mandatory energy storage requirements has led to a trend where provincial capacity policies are expected to support the industry's future development [9][12]. Key Companies and Financial Metrics - **Ningde Times**: Market cap of 149.28 billion, 2025 EPS of 14.9, PE of 22, rated "Strongly Recommended" [3]. - **Yiwei Lithium Energy**: Market cap of 15.1 billion, 2025 EPS of 2.2, PE of 33, rated "Strongly Recommended" [3]. - **Sunshine Power**: Market cap of 27.76 billion, 2025 EPS of 5.9, PE of 23, rated "Strongly Recommended" [3]. - **Hai Bo Si Chuang**: Market cap of 3.29 billion, 2025 EPS of 4.8, PE of 38, not rated [3]. - **Sheng Hong Co., Ltd.**: Market cap of 1.2 billion, 2025 EPS of 1.5, PE of 26, rated "Strongly Recommended" [3]. - **Kehua Data**: Market cap of 3.56 billion, 2025 EPS of 1.2, PE of 59, rated "Strongly Recommended" [3]. - **He Wang Electric**: Market cap of 1.54 billion, 2025 EPS of 1.4, PE of 25, rated "Strongly Recommended" [3]. Market Performance - The absolute performance of the energy storage and new energy sector has shown significant growth, with a 12-month increase of 67.9% [6]. Future Outlook - The energy storage installed capacity is projected to double within the next two and a half years, with an average annual installation requirement of 34GW/136GWh to meet the 2027 target [8][12]. - The demand for energy storage is expected to remain strong and sustainable, supported by ongoing policy initiatives and high bidding activity in the market [14].

Core Insights - KWH Data's stock price increased by 1.9% on September 15, reaching 70.35 CNY per share, with a trading volume of 5.619 billion CNY and a turnover rate of 18.07%, resulting in a total market capitalization of 36.259 billion CNY. The stock has risen for five consecutive days, with a cumulative increase of 30.98% during this period [1] Company Overview - KWH Data Co., Ltd. is located in Xiamen Torch High-tech Zone, Fujian Province, established on March 26, 1999, and listed on January 13, 2010. The company specializes in the production and sales of UPS power supplies for information equipment and industrial power [1] - The revenue composition of KWH Data includes: 49.62% from new energy products, 21.01% from data center products, 16.43% from IDC services, 11.77% from smart power products, and 1.17% from other sources [1] Shareholder Insights - Among the top ten circulating shareholders of KWH Data, a fund under Huatai-PB Fund is notable. The photovoltaic ETF (515790) increased its holdings by 434,200 shares in the second quarter, now holding 4.2156 million shares, which accounts for 0.93% of the circulating shares. The estimated floating profit today is approximately 5.5224 million CNY, with a total floating profit of 70.1476 million CNY during the five-day increase [2] Fund Manager Performance - The fund managers of the photovoltaic ETF (515790) are Li Qian and Li Mu Yang. As of the report, Li Qian has a cumulative tenure of 5 years and 317 days, managing a total fund size of 39.351 billion CNY, with the best fund return during her tenure being 104.7% and the worst being -18.35% [3] - Li Mu Yang has a cumulative tenure of 4 years and 254 days, managing a total fund size of 21.273 billion CNY, with the best fund return during his tenure being 106.91% and the worst being -45.34% [3]

Group 1 - The core viewpoint of the news is that Kehua Data's stock has experienced a significant increase, with a 30.98% rise over the past five days, reaching a price of 70.35 yuan per share and a market capitalization of 362.59 billion yuan [1] - Kehua Data's main business involves the production and sales of UPS power supplies for information equipment and industrial power, with revenue contributions from new energy products (49.62%), data center products (21.01%), IDC services (16.43%), smart energy products (11.77%), and others (1.17%) [1] - The stock's trading volume was 56.19 billion yuan, with a turnover rate of 18.07% [1] Group 2 - Among the top ten circulating shareholders of Kehua Data, the Southern Fund's Southern CSI 1000 ETF (512100) has recently entered the list, holding 3.32 million shares, which is 0.73% of the circulating shares [2] - The Southern CSI 1000 ETF has generated a floating profit of approximately 4.35 million yuan today and a total of 55.27 million yuan during the five-day increase [2] - The fund has a total scale of 649.53 billion yuan and has achieved a year-to-date return of 25.92% and a one-year return of 67.73% [2] Group 3 - The fund manager of Southern CSI 1000 ETF is Cui Lei, who has been in the position for 6 years and 314 days, with a total asset scale of 949.76 billion yuan [3] - During Cui Lei's tenure, the best fund return was 147.61%, while the worst was -15.93% [3]

Group 1 - The core viewpoint of the news is that Kehua Data has experienced a significant stock price increase, with a 30.98% rise over the past five days, reaching a price of 70.35 yuan per share and a market capitalization of 362.59 billion yuan [1] - Kehua Data's main business includes the production and sales of UPS power supplies for information equipment and industrial power, with revenue composition as follows: 49.62% from new energy products, 21.01% from data center products, 16.43% from IDC services, 11.77% from smart energy products, and 1.17% from other sources [1] - The stock has a trading volume of 56.19 billion yuan and a turnover rate of 18.07% [1] Group 2 - According to data from the top ten heavy stocks of funds, one fund under the Fortune Fund has a significant holding in Kehua Data, specifically the Fortune Rui Li Regular Open Mixed Fund A, which held 23,900 shares, accounting for 1.08% of the fund's net value [2] - The fund has seen a floating profit of approximately 39.77 million yuan during the five-day stock price increase, with a current floating profit of about 31,300 yuan [2] - The fund has a total scale of 42.6155 million yuan and has achieved a year-to-date return of 11.64% [2]