Group 1 - The company Jiangsu Shentong (002438) reported that as of October 20, 2025, the number of shareholders is 28,160 [1]

Core Viewpoint - Jiangsu Shentong's stock price has experienced fluctuations, with a recent decline of 2.03% and a year-to-date increase of 12.35%, indicating mixed market sentiment towards the company [1]. Financial Performance - For the first half of 2025, Jiangsu Shentong reported revenue of 1.068 billion yuan, representing a year-on-year growth of 1.52%, and a net profit attributable to shareholders of 150 million yuan, up 4.72% compared to the previous year [2]. Shareholder Information - As of September 30, the number of shareholders for Jiangsu Shentong decreased by 3.46% to 27,100, while the average number of circulating shares per person increased by 3.58% to 17,302 shares [2]. - The company has distributed a total of 369 million yuan in dividends since its A-share listing, with 195 million yuan distributed over the past three years [3]. Stock Market Activity - On October 22, Jiangsu Shentong's stock price was 13.51 yuan per share, with a trading volume of 88.14 million yuan and a turnover rate of 1.38%. The total market capitalization stood at 6.857 billion yuan [1]. - The net outflow of main funds was 9.703 million yuan, with significant selling pressure observed in large orders [1]. Business Overview - Jiangsu Shentong specializes in the research, production, and sales of industrial special valves, with its main revenue sources including butterfly valves (23.83%), flanges and forgings (23.09%), and energy-saving services (18.78%) [1]. - The company operates within the machinery and equipment sector, specifically in general equipment and metal products, and is involved in various concept sectors such as ultra-supercritical power generation, nuclear power, carbon neutrality, energy conservation, and offshore wind power [1].

Core Insights - Jiangsu Shentong's subsidiary Wuxi Flange has been focusing on the nuclear power and chemical sectors, enhancing its capacity through a large-diameter forged flange expansion project [2] - The company has achieved the capability for mass delivery of large-diameter forgings for chemical equipment and offshore wind power [2] - Jiangsu Shentong aims to maintain its leading advantage in the R&D, production, and sales of high-pressure, large-diameter special forgings [2]

Core Viewpoint - Jiangsu Shentong (002438.SZ) has been actively involved in supplying specialized valves for various new nuclear power plant types in China and is committed to keeping pace with advancements in nuclear energy technology [1] Group 1 - The company has participated in the supply of valves for all types of newly constructed nuclear power plants in China over the years [1] - Jiangsu Shentong is engaged in the research and supply of valves required for nuclear power projects in friendly countries [1] - The company is focused on the development of valves in line with the advancements in the nuclear energy application frontier [1]

Core Viewpoint - Jiangsu Shentong (002438.SZ) is focusing on enhancing its production capacity in the nuclear power and chemical sectors through its wholly-owned subsidiary Wuxi Flange, which has successfully developed the capability for mass delivery of large-diameter forged flanges for both large chemical equipment and offshore wind power [1] Group 1 - The company has been deeply engaged in the nuclear power and chemical fields for many years [1] - The large-diameter forged flange capacity expansion project aims to eliminate production bottlenecks [1] - The company will continue to strengthen its integrated advantages in the research, production, and sales of high-pressure, large-diameter special forgings [1]

Core Viewpoint - The company, Jiangsu Shentong, is actively increasing its R&D investment in the nuclear power sector, aligning with advancements in domestic nuclear technology and successfully launching a series of valve products that meet the standards of third and fourth generation nuclear technologies [2]. Group 1: Company Developments - Jiangsu Shentong confirmed its role as a major supplier for the Linglong One nuclear project and indicated that the number of orders on hand has increased compared to last year [2]. - The company's products now cover mainstream domestic reactor types, including Hualong One, Guohe One, high-temperature gas-cooled reactors, and fast reactors, providing stable and reliable valve support for new nuclear power units [2]. Group 2: Market Position - The company is focused on enhancing its competitive position in the nuclear power industry by developing products that meet the latest technological standards [2].

Core Insights - The smart control valve industry is experiencing rapid growth driven by policies such as the "14th Five-Year Plan for Intelligent Manufacturing," with the overall market expected to reach approximately 48.2 billion yuan in 2024 and exceed 50 billion yuan in 2025 [1][8] - The smart control valve segment is projected to grow from about 12.7 billion yuan in 2024 to 15.2 billion yuan in 2025, indicating a strong development trend [1][10] - The competitive landscape shows a dominance of foreign brands in the high-end market, with 13 foreign companies accounting for 56.97% of sales among the top 50 firms in 2024, while 37 domestic companies contribute 43.03% [1][9] Industry Overview - Smart control valves are advanced devices based on microprocessors that monitor operational status in real-time and utilize intelligent algorithms for precise control [2] - The industry is characterized by a dual opportunity from policy support and market demand, with domestic companies facing challenges in high-end breakthroughs despite having capabilities in general applications [1][8] Market Dynamics - The smart control valve market is projected to maintain an annual compound growth rate of approximately 10%, driven by the demand from traditional industries like petrochemicals and emerging sectors such as hydrogen energy and semiconductors [1][8][10] - The market structure is undergoing significant adjustments, with the top 50 companies' sales total increasing from 27.877 billion yuan in 2020 to 38.047 billion yuan in 2023, although a slight decline to 36.778 billion yuan is expected in 2024 [8][9] Competitive Landscape - The competitive landscape is marked by foreign brands leading in high-end markets, while domestic companies like Chuan Yi and Nuo Wei are making strides in general control valve sectors [1][11] - In 2024, Chuan Yi and Nuo Wei are expected to hold market shares of 8.3% and 4.9%, respectively, indicating a gradual improvement in the position of domestic firms [11][12] Future Trends - The future of the smart control valve industry will focus on technological integration, market expansion into new sectors, and a shift in competition towards comprehensive solutions combining hardware, software, and services [15][16] - Emerging fields such as renewable energy and semiconductors are expected to drive demand for specialized valves, while domestic companies will accelerate globalization efforts [16][17] - The industry is likely to see a transition from product-centric approaches to ecosystem development, enhancing customer loyalty through integrated solutions [18]

Core Viewpoint - On October 10, Jiangsu Shentong executed a block trade of 1 million shares, amounting to 12.5 million yuan, which represented 5.58% of the total trading volume for the day, with a transaction price of 12.5 yuan, reflecting a discount of 6.99% compared to the market closing price of 13.44 yuan [1]. Group 1: Transaction Details - The block trade occurred on October 10, 2025, involving Jiangsu Shentong (stock code: 002438) [2]. - The transaction price was set at 12.50 yuan per share, with a total volume of 100 million shares, resulting in a total transaction value of 12.5 million yuan [2]. - The buyer was a securities firm, while the seller was a combination of two different securities companies [2].

Core Viewpoint - Jiangsu Shentong (002438) has indicated that its energy and chemical valve production line has strong equipment versatility, allowing for adjustments in process parameters and molds to facilitate the production of offshore valves [1] Group 1 - The company has responded to investor inquiries regarding its production capabilities [1] - The versatility of the production line is highlighted, suggesting adaptability to different types of valve manufacturing [1] - The ability to adjust process parameters and molds indicates a flexible manufacturing approach [1]

Investment Rating - The report maintains a "Recommended" investment rating for the mechanical equipment industry [3] Core Viewpoints - The mechanical equipment industry is entering the "AI Era," which will create significant investment opportunities centered around AI infrastructure and AI empowerment [4][15] - The report highlights the historical performance of the mechanical equipment sector during previous five-year plans, indicating that each era has distinct characteristics that influence investment opportunities [6][10] Summary by Sections 1. Review of Five-Year Plans - The mechanical equipment industry has shown varying performance across the past four five-year plans, with significant growth during the Eleventh Five-Year Plan (642% increase) and a decline during the Thirteenth Five-Year Plan (-21% decrease) [6][7] - The industry ranked second among 28 sectors during the Eleventh Five-Year Plan and seventh during the Fourteenth Five-Year Plan, reflecting its evolving significance [7][8] 2. AI Infrastructure: Driving Demand for PCB Equipment, AIDC, Liquid Cooling, and Semiconductor Equipment - The AI computing revolution is expected to drive structural growth in PCB demand, with a projected annual growth rate of 16.3% for AI server-related HDI from 2023 to 2028 [19] - The report anticipates that the global PCB market will reach $73.565 billion in 2024, with a 5.8% year-on-year increase, and $94.661 billion by 2029 [19] - AI servers significantly increase the unit value of PCBs, with a single AI server PCB valued at $500-$800, compared to $200-$300 for traditional servers [20] - The report identifies challenges in capacity expansion, including long delivery times for high-end equipment and complex process validations [21] 3. AI Empowerment: The Rise of Embodied Intelligent Robots - The report discusses the practical applications of embodied intelligent robots in industrial logistics, elderly care, and specialized environments, emphasizing their potential to improve efficiency and safety [4][15] - It highlights the importance of technical feasibility and cost-effectiveness in the deployment of these robots [4] 4. Investment Recommendations - The report suggests focusing on AI infrastructure and AI empowerment as key investment directions for the mechanical equipment industry during the Fifteenth Five-Year Plan [4][15] - Specific recommendations include AI PCB equipment, AIDC power generation equipment, liquid cooling solutions, and semiconductor equipment [4][15] 5. Related Listed Companies - The report provides insights into key companies in the PCB equipment sector, such as Dazhu CNC, Chipbond Technology, and Dongwei Technology, highlighting their market performance and technological advancements [40][41]