Summary of Shenzhen Kstar Science & Tech (002518.SZ) Conference Call Company Overview - **Company**: Shenzhen Kstar Science & Tech (002518.SZ) - **Industry**: Electric power conversion technology, focusing on data centers and energy storage systems (ESS) Key Financial Highlights - **2Q25 Results**: - Revenue: Rmb1,219 million, +15% YoY - Gross Profit: Rmb350 million, +7% YoY - EBIT: Rmb141 million, +82% YoY - Net Profit: Rmb144 million, +70% YoY - Gross Margin: 29%, -2pp YoY - Operating Margin: 12%, +4pp YoY - Net Profit Margin: 12%, +4pp YoY - **Comparison to Guidance**: Results were largely in line with expectations, with slight deviations in gross profit and net profit compared to guidance estimates [1][21] Growth Projections - **Revenue Growth**: - Targeting 15%-20% sales growth in the data center segment for full-year 2025, implying 21%-30% growth in 2H25 [2] - Revised 2025E-2030E net profit estimates increased by 7% on average due to solid data center demand and overseas expansion potential [19] - **Price Target**: Updated 12-month price target raised to Rmb35.3 from Rmb30.9, based on a higher target multiple reflecting improved growth and return profiles [19] Segment Performance - **Data Center Products**: - Sales in 1H25: Rmb1,329 million, +8% YoY - Significant order growth (>20% YoY) expected in 2Q25, with many orders scheduled for delivery in 2H25 [2] - **Energy Storage Systems (ESS)**: - Sales in 1H25: Rmb265 million, +80% YoY - Targeting to double ESS sales growth in full-year 2025 [17] - **Solar Inverters**: - Sales in 1H25: Rmb450 million, +5% YoY - Anticipated domestic demand headwinds in 2H25, but low profitability expected to limit impact on overall earnings [18] Market Expansion and Strategic Initiatives - **Overseas Markets**: Contributed approximately 55% of segment sales in 1H25, primarily driven by Southeast Asia and Europe [2] - **New Partnerships**: Collaborating with a UPS brand for potential ODM business targeting high-power UPS products for AI data centers in North America [2] - **Domestic Market**: Domestic sales accounted for about 45% of segment sales in 1H25, with key customers including Alibaba and Bytedance [20] Risks and Challenges - **Downside Risks**: - Lower-than-expected data center revenue growth - Lower-than-expected new energy revenue outlook - Lower-than-expected new energy margins [19][23] Conclusion - **Investment Rating**: Maintain Buy rating based on attractive P/E valuation and long-term growth potential [19][22] - **Future Outlook**: Positive growth outlook driven by data center demand, overseas expansion, and recovery in new energy business, with a focus on improving margins and profitability [22]

Core Viewpoint - Kstar Technology's stock has shown significant growth this year, with a year-to-date increase of 66.55% and a recent surge in trading activity, indicating strong investor interest and market performance [1][2]. Company Overview - Kstar Technology, established on March 17, 1993, and listed on December 7, 2010, is based in Shenzhen, China. The company specializes in the research, production, sales, and service of UPS systems and valve-regulated sealed lead-acid batteries [1]. - The company's revenue composition is as follows: 61.44% from the data center industry, 37.60% from the renewable energy sector, and 0.96% from other sources [1]. Financial Performance - For the first half of 2025, Kstar Technology reported a revenue of 2.163 billion yuan, representing a year-on-year growth of 14.35%. The net profit attributable to shareholders was 255 million yuan, reflecting a 16.49% increase compared to the previous year [2]. - Cumulatively, Kstar has distributed 1.544 billion yuan in dividends since its A-share listing, with 602 million yuan distributed over the last three years [3]. Shareholder Information - As of July 31, 2025, Kstar Technology had 68,000 shareholders, an increase of 3.03% from the previous period. The average number of tradable shares per shareholder decreased by 2.94% to 8,310 shares [2]. - The top ten circulating shareholders include significant institutional investors, with Hong Kong Central Clearing Limited as the second-largest shareholder, holding 8.2408 million shares, an increase of 5.1697 million shares from the previous period [3].

Core Insights - The company Koshida (002518) reported a total revenue of 2.163 billion yuan for the first half of 2025, representing a year-on-year increase of 14.35% and a net profit of 255 million yuan, up 16.49% year-on-year [1] - The second quarter alone saw a revenue of 1.219 billion yuan, with a significant net profit increase of 51.58% year-on-year [1] - The company's accounts receivable is notably high, with accounts receivable amounting to 368.46% of the net profit [1] Financial Performance - Total revenue for 2024 was 1.891 billion yuan, while for 2025 it increased to 2.163 billion yuan, showing a growth of 14.35% [1] - Net profit rose from 219 million yuan in 2024 to 255 million yuan in 2025, marking a 16.49% increase [1] - The gross profit margin decreased to 28.99%, down 7.98% year-on-year, while the net profit margin improved to 11.88%, up 4.49% [1] - The total of selling, administrative, and financial expenses was 164 million yuan, accounting for 7.58% of revenue, a decrease of 5.54% year-on-year [1] - Earnings per share increased from 0.38 yuan to 0.44 yuan, a rise of 15.79% [1] Cash Flow and Debt - The company reported a significant increase in cash flow, with operating cash flow per share rising to 0.23 yuan, a remarkable increase of 475.65% year-on-year [1] - The cash and cash equivalents increased to 423 million yuan, up 53.79% from the previous year [1] - Interest-bearing debt decreased to 121 million yuan, down 21.41% year-on-year [1] Market Position and Future Outlook - The company's return on invested capital (ROIC) was reported at 7.26%, indicating average capital returns, with a historical median ROIC of 12.3% over the past decade [1] - Analysts expect the company's performance for 2025 to reach 559 million yuan, with an average earnings per share forecast of 0.96 yuan [2] - The data center business is experiencing growth, driven by increased investments in technology, with the company optimistic about future performance in this sector [5]

Core Insights - The company reported a revenue of 2.163 billion yuan for the first half of 2025, representing a year-on-year growth of 14.35% [1] - The net profit attributable to shareholders reached 255 million yuan, with a year-on-year increase of 16.49% [1] - In Q2 2025, the company achieved a revenue of 1.219 billion yuan, showing a year-on-year growth of 15.00% and a quarter-on-quarter increase of 29.25% [1] - The net profit for Q2 2025 was 144 million yuan, reflecting a year-on-year growth of 51.58% and a quarter-on-quarter increase of 29.93% [1] Business Segments - The company is focused on the "data center + new energy" dual business model, showing growth in both revenue and net profit in the first half of 2025 [1] - The data center business is identified as the core segment, benefiting from the surge in data center infrastructure driven by advancements in AI technology [1] - The company has established itself as a major supplier for leading internet clients such as ByteDance, Alibaba, JD.com, and Century Internet [1] - The company is expanding its presence in overseas markets, achieving breakthroughs in North America, Europe, and Southeast Asia [1] New Energy Business - The company indicated that the new energy business experienced short-term fluctuations due to inventory impacts from European clients in 2024 [2] - However, the demand recovery in the European energy storage market is expected to drive the new energy segment back into a growth trajectory [2]

Core Viewpoint - Brazil's energy storage industry is on the verge of explosive growth, driven by the implementation of regulatory frameworks and increasing demand for solar energy storage solutions [2][3]. Group 1: Market Overview - Brazil's solar power generation is expected to increase its share in the total energy mix from 22.2% at the end of 2024 to 32.9% by 2029, with installed capacity rising from 51.7 GW to 88.2 GW, a net increase of 36.5 GW [2]. - The Brazilian Energy Storage Association (ABSAE) predicts that the solar energy storage sector will attract approximately 44 billion Brazilian Reais (around 8.46 billion USD) in investments by 2030, with off-grid systems, grid-level projects, and commercial/industrial storage each accounting for one-third of total investments [2]. - In 2024, battery storage demand in Brazil surged by 89%, with some regions experiencing over 190 hours of power outages annually, highlighting the urgent need for storage solutions among households and agricultural users [2]. Group 2: Regulatory and Policy Environment - The urgency of integrating battery storage systems into Brazil's electricity structure was emphasized by Rodrigo Sauaia, Executive Chairman of the Brazilian Solar Energy Association (ABSOLAR), noting that approximately 1 billion Brazilian Reais of renewable energy in the Northeast market remains unused due to a lack of infrastructure and planning [3]. - The development of storage solutions is currently hindered by pending regulatory policies, but the market is expected to flourish once these policies are established [3]. Group 3: Company Developments - CATL showcased its TENER Stack, a 9MWh modular energy storage system that improves land use efficiency by 45% and energy density by 50% compared to traditional systems [6]. - Trina Solar presented its Elementa series, which combines components, brackets, and storage to address grid stability challenges in Latin America, with a total shipment of 9 GW in Brazil and 19 GW in Latin America [10]. - Risen Energy introduced its Risen Sunease system and Risen Stack1, emphasizing safety and rapid deployment capabilities [12]. - Kehua Tech displayed its 1500V energy storage solution, designed to operate reliably in diverse climatic conditions across South America [15]. - Sungrow launched its integrated solar-storage solutions, addressing the structural electricity shortages in Brazil [17]. Group 4: Strategic Collaborations - During the exhibition, several companies, including Sungrow and DONG Energy, signed strategic cooperation agreements with local renewable energy firms to deepen collaboration in the storage sector [20].

Core Viewpoint - The liquid cooling server concept stocks experienced a rebound after an initial dip, with several companies reaching significant gains, indicating a positive market sentiment towards this technology [1] Company Performance - Inveke reached a limit-up and set a new historical high [1] - Siquan New Materials saw an increase of over 10% [1] - Dayuan Pump Industry, Shenling Environment, ZTE Corporation, and Oulu Tong all rose by more than 5% [1] - Yimikang, Chunz中科技, and Keshida also experienced gains [1]

Group 1 - Keda's stock price increased by 3.91% on August 27, with a trading volume of 1.83 billion yuan [1] - On the same day, Keda had a financing buy-in of 111 million yuan and a financing repayment of 223 million yuan, resulting in a net financing outflow of 112 million yuan [1] - As of August 27, Keda's total margin balance was 395 million yuan, with a financing balance of 393 million yuan, accounting for 1.91% of its market capitalization [1] Group 2 - Keda's revenue for the first half of 2025 reached 2.163 billion yuan, representing a year-on-year growth of 14.35%, while the net profit attributable to shareholders was 255 million yuan, up 16.49% [2] - The number of Keda's shareholders increased to 68,000 as of July 31, with an average of 8,310 circulating shares per person, a decrease of 2.94% [2] Group 3 - As of June 30, 2025, Keda's second-largest circulating shareholder was Hong Kong Central Clearing Limited, holding 8.2408 million shares, an increase of 5.1697 million shares from the previous period [3] - The fourth-largest circulating shareholder was the Photovoltaic ETF, holding 2.7271 million shares, with a slight increase of 3,600 shares [3] - New entrants among the top ten circulating shareholders included the Huaxia CSI 1000 ETF, holding 1.2669 million shares [3]

Core Viewpoint - The company, Shenzhen Keda Technology Co., Ltd., has released its 2025 semi-annual report, which reflects its operational performance and financial status for the first half of the year. The report has been approved by both the board of directors and the supervisory board, confirming its accuracy and completeness [7][14]. Group 1: Company Overview - The company has not changed its controlling shareholder or actual controller during the reporting period [4]. - The company does not plan to distribute cash dividends, issue bonus shares, or increase capital from reserves [2]. Group 2: Board Meeting Details - The sixth board of directors' 22nd meeting was held on August 27, 2025, with all seven directors present, and the meeting was conducted in accordance with legal requirements [6]. - The board unanimously approved the 2025 semi-annual report, confirming that it complies with relevant laws and accurately reflects the company's operational situation [8][9]. Group 3: Supervisory Board Meeting Details - The sixth supervisory board's 18th meeting was also held on August 27, 2025, with all three supervisors present, and the meeting adhered to legal and regulatory requirements [13]. - The supervisory board agreed that the procedures for preparing and reviewing the semi-annual report were compliant, and the report accurately represents the company's actual situation [15].

科士达(002518.SZ)发布2025年半年度报告，报告期内，公司实现营业收入21.63亿元，同比增长 14.35%。实现归属于上市公司股东的净利润2.55亿元，同比增长16.49%。实现归属于上市公司股东的扣 除非经常性损益的净利润2.37亿元，同比增长14.33%。基本每股收益0.44元。 ...

（文章来源：证券日报） 证券日报网讯 8月27日晚间，科士达发布公告称，公司第六届监事会第十八次会议审议通过了《公司 2025年半年度报告及摘要》。 ...