Summary of AIDC Conference Call Industry Overview - The conference call focuses on the AIDC (Artificial Intelligence Data Center) industry, particularly the transition towards 800 VDC (voltage direct current) systems and the adoption of solid-state circuit breakers (SSCB) [1][3][4]. Key Points and Arguments - **Transition to 800 VDC**: The domestic 800 VDC pilot projects are being implemented, marking a significant shift towards direct current and high voltage systems, which will drive the evolution of UPS (Uninterruptible Power Supply) to HVDC and SST (Solid-State Transformer) [1][3]. - **Solid-State Circuit Breakers (SSCB)**: The application of SSCBs in 800 V systems is accelerating, with companies like Eaton, ABB, and domestic firms such as Liangxin, Taiyong Changzheng, and Chint Electric actively investing in this technology [1][5]. - **Market Acceptance**: There is an increasing acceptance of direct current power supply solutions in the market. Companies like ByteDance are testing DC UPS and 800 V HVDC systems, indicating a growing willingness to adopt these technologies [1][6]. - **Investment Potential**: Companies such as Zhongheng Electric, Keda, and Oulutong are identified as having significant investment potential due to their strategic positions and partnerships with major players like Alibaba and ByteDance [1][7]. - **Impact of Overseas Markets**: The North American market shows a significant influence on high voltage direct current systems, with companies benefiting from the new cycle of internet infrastructure investment [1][8]. - **Future Demand for SSCBs**: The demand for SSCBs is expected to grow significantly, with projections indicating a market space of 2 billion yuan by 2027 if the penetration rate of 800 V HVDC reaches 20% [2][13]. Additional Important Insights - **Economic Benefits of SSCBs**: The adoption of SSCBs in data centers is expected to yield substantial economic benefits, including reduced maintenance costs and increased electrical lifespan [12][13]. - **Application Scenarios**: SSCBs are particularly suited for high-frequency operations and compact requirements in data centers, with applications in various scenarios such as multi-ecological access and high-voltage DC relay upgrades [14][15]. - **Market Forecast**: The global market for SSCBs is projected to reach 30 billion yuan by 2027, with a significant portion of this market driven by overseas demand due to higher penetration rates and pricing [13]. This summary encapsulates the key discussions and insights from the AIDC conference call, highlighting the industry's transition towards high voltage direct current systems and the growing role of solid-state circuit breakers.

Investment Rating - The report maintains a "Recommended" investment rating for the power equipment sector [6][17]. Core Viewpoints - The domestic data center industry is entering a new cycle of expansion and upgrades, with direct current (DC) power supply equipment expected to benefit first. The market size of China's data center industry is projected to exceed 318 billion yuan in 2025, representing a year-on-year growth of approximately 14.7%. By 2030, it may reach 1.2 trillion yuan, with a compound annual growth rate (CAGR) of about 25%-28% [5][15]. - The load scale of data centers is expected to be around 7.05 GW in 2025, increasing to 9.37 GW by 2030, with a CAGR of approximately 5.85%. The demand for AI computing power is driving significant capital expenditure from leading internet companies, with ByteDance planning to invest about 160 billion yuan in AI infrastructure in 2026, and Alibaba expecting to invest over 380 billion yuan in cloud and AI hardware from 2025 to 2027 [5][15]. - The industry is experiencing an unexpected expansion, with infrastructure technology upgrades creating investment opportunities in IDC-compatible DC power supply equipment [5][15]. Summary by Sections Investment Viewpoints - The report suggests focusing on the IDC sector, recommending companies such as Kehua Data and Jinpan Technology, as well as Sifang Co. and Liangxin Co. for their potential in the HVDC/SST industry. It also highlights the importance of high-voltage circuit breakers and suggests monitoring companies like Zhongheng Electric, Magmeter, and Oulu Tong in the power supply sector [6][16]. Key Companies and Profit Forecasts - The report includes profit forecasts for several companies, with notable mentions: - Kehua Data (002335.SZ): EPS forecast of 1.86 yuan for 2026, currently unrated [18]. - Liangxin Co. (002706.SZ): Rated "Buy" with an EPS forecast of 0.44 yuan for 2026 [19]. - Magmeter (002851.SZ): Rated "Buy" with an EPS forecast of 2.07 yuan for 2026 [19]. - Sunshine Power (300274.SZ): Rated "Buy" with an EPS forecast of 7.74 yuan for 2026 [19]. - Jinpan Technology (688676.SH): Rated "Buy" with an EPS forecast of 2.20 yuan for 2026 [19]. Market Performance - The power equipment sector saw a 5.02% increase last week, ranking 12th among 28 sub-industries, outperforming the Shanghai Composite Index by 1.21 percentage points [46].

Group 1 - Zhongheng Electric's stock price increased by 5.25% to 33.28 CNY per share, with a trading volume of 165 million CNY and a turnover rate of 0.89%, resulting in a total market capitalization of 18.755 billion CNY [1] - The stock has risen for seven consecutive days, with a cumulative increase of 19.82% during this period [1] - The company, founded on July 11, 2001, and listed on March 5, 2010, specializes in the research, production, sales, and service of high-frequency switch power supply systems, with main products including communication power systems and power operation power systems [1] Group 2 - The revenue composition of Zhongheng Electric includes data center power supply (45.66%), power operation power systems (19.60%), communication power systems (19.22%), software development and services (11.47%), other (2.87%), and power management services and engineering income (1.17%) [1] - Among the top ten circulating shareholders, Jin Ying Fund's Jin Ying Technology Innovation Stock A (001167) entered the list in the third quarter, holding 2.5598 million shares, accounting for 0.46% of circulating shares, with a floating profit of approximately 4.2493 million CNY today and 13.3878 million CNY during the seven-day rise [2] - Jin Ying Technology Innovation Stock A has a total asset scale of 4.067 billion CNY, with a year-to-date return of 8.56% and a one-year return of 47.4% [2]

Group 1 - The data center power supply sector experienced a significant rally, with various companies showing strong performance [1] - Zhongheng Electric (002364) reached the daily limit increase, indicating robust investor interest [1] - Other notable performers included Dongyangguang (600673), Weichai Heavy Machine (000880), KOTAI Power (300153), Keda (002518), and Yimikang (300249), all of which saw substantial gains [1]

Group 1 - The power equipment sector experienced a significant rally in the afternoon, with companies such as Zhongheng Electric and Hailu Heavy Industry hitting the daily limit up [1] - Other companies in the sector, including KOTAI Power, Keda Technology, Keda Data, and Oulu Tong, also saw increases in their stock prices [1]

Core Viewpoint - Zhongheng Electric has shown a significant stock price increase of 12.97% year-to-date, with a notable rise of 16.86% over the past 20 trading days, despite a recent decline of 4.02% over the last 60 days [1][2]. Company Overview - Zhongheng Electric, established on July 11, 2001, and listed on March 5, 2010, is located in Hangzhou, Zhejiang Province. The company specializes in the research, production, sales, and service of high-frequency switch power supply systems, with main products including communication power systems and power operation power systems [1]. - The revenue composition of Zhongheng Electric is as follows: data center power accounts for 45.66%, power operation power systems 19.60%, communication power systems 19.22%, software development and services 11.47%, other 2.87%, and power management services and engineering income 1.17% [1]. Financial Performance - For the period from January to September 2025, Zhongheng Electric achieved an operating income of 1.418 billion yuan, representing a year-on-year growth of 20.29%. However, the net profit attributable to shareholders decreased by 15.59% to 72.5731 million yuan [2]. - Since its A-share listing, Zhongheng Electric has distributed a total of 527 million yuan in dividends, with 84.3543 million yuan distributed over the past three years [3]. Shareholder Structure - As of September 30, 2025, Zhongheng Electric had 77,100 shareholders, an increase of 2.71% from the previous period. The average number of circulating shares per person decreased by 2.64% to 7,243 shares [2]. - Notable changes in the top ten circulating shareholders include the entry of new shareholders such as Caitong Asset Management and the increase in holdings by Hong Kong Central Clearing Limited [3].

Market Overview - The other power equipment sector increased by 3.0% on January 7, with Yingjie Electric leading the gains [1] - The Shanghai Composite Index closed at 4085.77, up 0.05%, while the Shenzhen Component Index closed at 14030.56, up 0.06% [1] Stock Performance - Yingjie Electric (300820) closed at 54.02, up 9.07% with a trading volume of 112,800 shares and a transaction value of 590 million [1] - Maigemit (002851) closed at 99.58, up 7.92% with a trading volume of 305,300 shares and a transaction value of 2.991 billion [1] - New Power (300593) closed at 32.89, up 5.89% with a trading volume of 641,500 shares and a transaction value of 2.038 billion [1] - Other notable stocks include Zhongheng Electric (002364) up 5.82%, Kehua Data (002335) up 5.17%, and Oulu Tong (300870) up 4.84% [1] Capital Flow - The other power equipment sector saw a net inflow of 1.157 billion in main funds, while retail investors experienced a net outflow of 972 million [2] - The main funds showed significant inflows in stocks like Kehua Data (002335) with 264 million, Maigemit (002851) with 243 million, and Shanghai Electric (601727) with 209 million [3] - Conversely, retail investors showed outflows in stocks such as Kehua Data (002335) with 224 million and Maigemit (002851) with 102 million [3]

Core Viewpoint - Zhongheng Electric (002364.SZ) announced that its actual controller, Zhu Guoding, received a criminal judgment from the Hangzhou Intermediate People's Court, indicating legal issues related to market manipulation [1][2]. Group 1: Legal Proceedings - Zhu Guoding was sentenced to three years in prison, with a four-year probation, and fined 1 million RMB for the crime of manipulating the securities market [2]. - The case has been ongoing since August 2020, when the company disclosed that Zhu was under investigation by the China Securities Regulatory Commission for suspected stock price manipulation [1][2]. Group 2: Shareholder Information - As of September 30, 2025, major shareholders include Hangzhou Zhongheng Technology Investment Co., Ltd. with 200,389,724 shares (35.905% of circulating shares) and Shanghai Pudong Development Bank's fund with 9,432,900 shares (1.690%) [3]. - Other significant shareholders include Shenzhen Zhanbo Investment Management Co., Ltd. with 5,374,584 shares (0.963%) [3].

Core Viewpoint - Zhongheng Electric (002364) announced that its actual controller, Zhu Guoding, received a criminal judgment from the Hangzhou Intermediate People's Court, indicating legal issues related to market manipulation [1][2]. Group 1: Legal Proceedings - Zhu Guoding was sentenced to three years in prison, with a four-year probation, and fined 1 million RMB for the crime of manipulating the securities market [2]. - The company had previously disclosed various announcements regarding Zhu Guoding's legal troubles, including an investigation by the China Securities Regulatory Commission and measures taken by public security [1]. Group 2: Shareholder Information - As of September 30, 2025, the major shareholders of Zhongheng Electric include Hangzhou Zhongheng Technology Investment Co., Ltd. with 35.905% of circulating shares, and Zhu Guoding with 4.604% [2][3]. - Other significant shareholders include Shanghai Pudong Development Bank's fund and Shenzhen Zhanbo Investment Management Co., Ltd.'s fund, holding 1.690% and 0.963% of circulating shares, respectively [3].

Group 1 - The company announced that its actual controller, Zhu Guoding, received a criminal judgment from the Hangzhou Intermediate People's Court, sentencing him to three years in prison with a four-year probation for manipulating the securities market [1][2] - The company had previously disclosed various updates regarding Zhu Guoding's legal situation, including an investigation by the China Securities Regulatory Commission and his subsequent release on bail [1][2] - The company stated that Zhu Guoding is currently not serving as a director or senior management personnel, and the judgment will not significantly impact the company's operations [3] Group 2 - The court imposed a fine of 1 million RMB on Zhu Guoding in addition to the prison sentence [2] - The company confirmed that its daily operations are normal and all work is proceeding in an orderly manner despite the legal issues surrounding its actual controller [3]