Core Viewpoint - The company has developed a comprehensive range of products and systems including UPS power supplies, high-voltage direct current (HVDC) power supplies, temperature control equipment, lead-acid/lithium batteries, micro-modules, and power modules, targeting AI computing applications with key products like PowerFort integrated power modules and megawatt-level UPS systems [1] Group 1: Domestic Market Strategy - The company has established deep partnerships with major domestic internet giants and leading IDC service providers such as ByteDance, JD.com, Alibaba, Baidu, GDS, and Century Interconnect, solidifying its foundation for local business development [1] Group 2: International Market Expansion - The company is building a channel cooperation system through core agents, operators, and EPC contractors to strengthen its presence in Europe and Southeast Asia while actively expanding into emerging markets like North America and Australia [1]

Core Viewpoint - The company will continue to focus on a dual-driven strategy of "data center + new energy" to capitalize on growth opportunities in both sectors [1] Data Center Sector - The company aims to leverage the accelerating global infrastructure for computing power by upgrading UPS products towards medium and large power, as well as liquid cooling technologies [1] - New product developments will include HVDC, integrated power modules, and SST to meet the high reliability and efficiency demands of AI computing centers [1] - The company plans to deepen collaboration with leading domestic internet companies and clients in finance and telecommunications, while using its Vietnam factory as a core overseas node to expand ODM orders in rapidly growing regions like North America and Southeast Asia [1] New Energy Sector - The core growth engine will be energy storage, focusing on comprehensive energy storage solutions to strengthen its position in mature European markets and accelerate penetration into emerging markets [1] - The company will promote the integration of solar energy storage and charging solutions, enhancing supply chain resilience through partnerships with leading battery cell manufacturers [1] - The synergy between the data center and new energy businesses is expected to broaden the company's growth space [1]

Group 1: Company Strategy - The company will continue to focus on a "data center + new energy" dual-driven core strategy, emphasizing the upgrade of UPS products towards medium and high power and liquid cooling [2] - The company aims to enhance its global market share by expanding ODM orders in North America and Southeast Asia, leveraging its Vietnam factory as a key overseas hub [2] Group 2: Data Center Product and Market Layout - The company has over 30 years of experience in the power electronics industry, offering a comprehensive product range including UPS, HVDC, temperature control equipment, and energy storage solutions [3] - Key products for AI computing applications include the PowerFort integrated power module and LiquiX AI cooling solutions, with strong partnerships with major domestic internet companies [3] Group 3: Energy Storage Market Layout - The energy storage business is positioned as a core growth engine, with a complete layout of technology, products, and global channels, expected to achieve rapid growth by 2025 [4] - The company’s energy storage products cater to various applications, including residential, commercial, and grid-level, with a focus on overseas markets and partnerships with leading battery cell manufacturers [4] Group 4: Investor Communication - The company ensured compliance with information disclosure regulations during investor communications, maintaining the accuracy and completeness of disclosed information [5]

Core Insights - The fundamental driver of AI power supply solutions is the continuous improvement in single-chip and single-cabinet power levels, with companies like NVIDIA leading the charge in upgrading their AI chips [1] - The power of AI data centers in North America is projected to reach 71GW by 2028, driven by advancements in multi-chip designs such as NVL72 from NVIDIA and Superpod from Google [1] Group 1: Power Supply Evolution - The main directions for AIDC power supply iteration are high power, high voltage, and direct current, with NVIDIA's white paper outlining a clear path from AC to 800V DC solutions [2] - The OCP organization has established ±400V power supply standards, aiming for MW-level cabinet power through direct current supply [2] Group 2: Technological Changes and Growth - The evolution of power supply solutions has led to the development of integrated devices like HVDC Sidecar and SST hosts, which can perform multiple functions such as voltage reduction and power quality improvement [3] - Key challenges in R&D include power conversion modules and high-frequency isolation transformers, with third-generation wide bandgap semiconductors like SiC and GaN being crucial for achieving high voltage and efficiency [3] Group 3: Investment Opportunities - Four key areas for investment consideration include AIDC power hosts (PSU, HVDC, SST), with companies like Sungrow Power (300274.SZ) and Megmeet (002851.SZ) being notable mentions [4] - Energy storage solutions at the station level are highlighted, with companies such as Sungrow Power and Fluence Energy (FLNC.US) being potential investment targets [4] - Core incremental components like solid-state circuit breakers and electronic fuses are also identified, with companies like Liyang Technology (002706.SZ) and Vicor Corporation (VICR.US) being recommended [4] - Third-generation semiconductors like GaN and SiC are emphasized as critical components for future developments [4]

Summary of Key Points from the Conference Call Transcript Industry Overview - **Industry**: China Data Center Equipment - **Key Focus**: Power and cooling upgrades, particularly related to NVIDIA's Vera Rubin platform launch in 2026 [2][3] Core Insights and Arguments - **NVIDIA's Rubin Platform**: - The Rubin platform is set to double the rack power compared to the previous Blackwell platform, moving from 80% to 100% liquid cooling [2] - Rubin is currently in full production [2] - **VR200 NVL72 Specifications**: - Delivers approximately 3.5x to 5x the training/inference AI computing power compared to GB300 NVL72, significantly increasing rack-level power demand [3] - Upgrades power shelves to a 3*3U 110 kW configuration, compared to the GB300's 8*1U 33 kW shelves [3] - Introduces a 3+1 redundancy design for power shelves [3] - **Future Developments**: - Anticipation of transitioning to the next-generation Kyber rack design, which will support 800V HVDC to meet rising power requirements driven by AI compute scaling [3] - Potential launch of Rubin Ultra in 2027 could further unleash HVDC demand [3] Investment Opportunities - **Stock Picks**: - **Kstar and Kehua**: Expected to benefit from stronger UPS demand and potential upgrades to HVDC and SST [4] - Kstar is anticipated to have strong order intake from US hyperscalers due to strategic partnerships [4] - Kehua's domestic GPU ramp-up and H200 shipment could enhance order intake from domestic hyperscalers [4] Risks and Valuation - **Downside Risks for Data Center Equipment Sector**: - Slower-than-expected AI data center capacity growth [6] - Slower penetration of high-power density products [6] - Challenges in gaining market share in the overseas AIDC equipment supply chain [6] - **Kehua's Price Target and Risks**: - Price target based on DCF methodology; downside risks include slower IDC capacity expansion and lower overseas shipment expectations [7] - Upside risks include faster IDC capacity expansion and stronger relationships with hyperscalers [7] - **Kstar's Price Target and Risks**: - Similar DCF methodology for price target; downside risks include slower IDC capacity expansion and new entrants in the market [8] - Upside risks include faster IDC capacity expansion and higher overseas shipments [8] Additional Important Information - **Analyst Team**: The report was prepared by UBS Securities Asia Limited, with analysts Yishu Yan, Anna Yuan, and Ken Liu involved [5] - **Valuation Methodology**: The report emphasizes the use of DCF methodology for price targets and highlights the importance of understanding risks before making investment decisions [7][8] This summary encapsulates the critical insights and data from the conference call, focusing on the developments in the China data center equipment industry, particularly regarding NVIDIA's advancements and the implications for investment opportunities in Kstar and Kehua.

Core Viewpoint - The core contradiction in artificial intelligence infrastructure construction is shifting from the pursuit of GPU quantity to the competition for power supply speed, with "Time-to-Power" becoming the most severe bottleneck in AI construction [1][2]. Group 1: Power Supply Challenges - The average lifespan of power grids in the US and EU has reached 35 to 40 years, and the infrastructure is increasingly fragile in the face of explosive energy demands from AI data centers (AIDC) [1][2]. - The domestic power equipment capacity in the US can only meet about 40% of local demand, with waiting times for grid connection extending to nearly five years [1][2]. - This structural shortage is reshaping the pricing power in the supply chain, with qualified Chinese suppliers gaining advantages not just from lower costs but from shorter delivery times [1][3]. Group 2: Market Growth and Demand - Goldman Sachs projects that by 2030, electricity consumption by US data centers (including AI and non-AI) will increase by approximately 175% compared to 2023, contributing about 120 basis points to overall electricity demand [5]. - The overall addressable market for AI data center power products is expected to expand at a compound annual growth rate (CAGR) of about 39% from 2025 to 2030, covering various product categories [7][8]. Group 3: Product Prioritization - Goldman Sachs has provided a clear preference ranking for Chinese power supply-related product categories: gas turbine blades > power transformers > electrical components > uninterruptible power supplies/power racks > liquid cooling systems > server power [3][16]. - Gas turbine blades rank highest due to high material science and manufacturing barriers, while power transformers follow due to labor-intensive manufacturing and lengthy certification cycles [17]. Group 4: Competitive Advantages of Chinese Suppliers - The decisive competitive advantage for qualified Chinese suppliers is not only lower costs but also shorter delivery cycles, which have become the primary decision factor for data center operators and utility companies [10]. - Companies like Siyi Electric have gained market share in the US due to their short delivery cycles, with expected revenue from the US market increasing from 26% in 2026 to 28% in 2028 of their overseas income [10]. Group 5: Pricing Power and Profit Margins - Due to severe supply shortages, Chinese suppliers can achieve significant price premiums in overseas markets, ranging from 10% to 80% compared to domestic sales [12]. - For example, Siyi Electric's products have a gross margin of about 45% in the US, compared to 30% domestically, indicating a substantial profit margin increase despite potential tariffs and logistics costs [12].

Core Insights - The core contradiction in AI infrastructure construction is shifting from merely pursuing GPU quantities to competing for power supply speed, with "Time-to-Power" becoming the most severe bottleneck in AI development [1] - Chinese power solution providers with rapid delivery capabilities and large-scale production advantages are experiencing a historic revaluation opportunity [1] Group 1: Power Supply Challenges - The average lifespan of power grids in the US and EU has reached 35 to 40 years, and the infrastructure is increasingly fragile due to the explosive energy demands of AI data centers (AIDC) [1] - Current domestic power equipment capacity in the US can only meet about 40% of local demand, with interconnection waiting times extending to nearly five years [1] - Goldman Sachs predicts that the power supply shortage in the US will persist until 2030, with a projected 175% increase in electricity consumption by data centers by 2030 [2][3] Group 2: Market Dynamics and Growth - The overall addressable market for AI data center power products is expected to expand at a compound annual growth rate (CAGR) of approximately 39% from 2025 to 2030 [3] - The growth is driven by continuous capacity construction, increasing power density, and a shift from AC to DC architecture, with 800V DC distribution becoming the standard for many AI data center projects [4] Group 3: Competitive Advantages of Chinese Suppliers - Chinese suppliers are gaining a decisive competitive advantage not only through lower costs but also through shorter delivery cycles, which have become a primary decision factor for data center operators [5] - Companies like Siyi Electric and Yinglite are positioned to benefit from the supply shortages in the US market, with Siyi Electric's revenue from the US expected to grow from 26% in 2026 to 28% in 2028 [5][6] Group 4: Product Prioritization - Goldman Sachs has provided a clear preference ranking for Chinese power supply-related product categories: gas turbine blades > power transformers > electrical components > uninterruptible power supplies/power racks > liquid cooling systems > server power [6][7] - Gas turbine blades rank highest due to high material science and manufacturing barriers, while power transformers follow due to labor-intensive manufacturing and lengthy certification processes [7]

Summary of Conference Call on Chinese Power Solution Providers Industry Overview - The focus is on the **AI Data Center (AIDC)** power supply sector, particularly the **Chinese power solution providers** that are positioned to address the critical bottleneck of **time-to-power** in the AI buildout [3][4][13]. Key Insights - **Export-Driven Opportunities**: Chinese firms with expertise in **High-Voltage Direct Current (HVDC)** systems and established OEM/ODM relationships are expected to benefit from the increasing demand for robust AIDC power infrastructure, particularly in the US market [3][4][17]. - **Market Dynamics**: The US is experiencing a severe power bottleneck, with local power equipment capacity covering only **40%** of demand. This creates an opportunity for non-traditional suppliers, including qualified Chinese companies, to fill the gap [13][24]. - **Growth Projections**: The average sales CAGR for AIDC power products is projected to reach **39%** through **2030E**, driven by capacity buildout and technology-driven ASP inflation [15][58]. Preferred Companies - **Yingliu**: A leading manufacturer of gas turbine blades, expected to benefit from supply shortages, with a projected revenue and EPS CAGR of **25%** and **40%** respectively from **2025-30E** [21][81]. - **Sieyuan**: Positioned as a top supplier for power transformers, with a projected revenue CAGR of **23%** and net profit CAGR of **28%** from **2025-30E** [21][82]. - **Kstar**: Anticipated to see a **27%** total sales CAGR, driven by overseas high-power electricals and a strong focus on 800V DC products [21][81]. - **Envicool**: A liquid cooling specialist with a projected **98%** CAGR in server cooling sales from **2025-30E** [21][81]. - **Hongfa**: Expected to benefit from rising demand for HVDC relays, with a revenue target of **Rmb2,160 million** by **2030E** [21][81]. - **Jianghai**: Anticipated to see earlier-than-expected demand for aluminum electrolytic capacitors, with a focus on supercapacitors as a medium-term growth driver [21][22]. Competitive Landscape - **Supply Constraints**: The supply of gas turbines and transformers is expected to remain tight until **2028E-2030E**, with significant backlogs reported by major manufacturers [14][40]. - **Pricing Power**: Chinese suppliers can command price premiums of **10% to 80%** in overseas markets compared to domestic sales, driven by shortages and the ability to deliver faster [17][77]. Structural Trends - **Power Demand Growth**: The US is projected to see a **175%** increase in data center electricity use by **2030**, contributing to a **2.6%** CAGR in power demand [23][24]. - **Technological Shift**: The transition to **800V DC architecture** is becoming standard for new AI data center projects, which is expected to enhance energy efficiency and reduce operational costs [57][70]. Conclusion - The Chinese power solution providers are well-positioned to capture significant market share in the AIDC sector, driven by their ability to meet stringent technical requirements and deliver products with shorter lead times. The combination of strong demand, supply constraints, and technological advancements presents a compelling investment opportunity in this sector [3][4][17][72].

Summary of Conference Call Notes on Kstar and Kehua Industry Overview - The report focuses on the data center electricals industry, specifically analyzing two companies: Kstar and Kehua. - Kstar is positioned as a key ODM partner for global players, particularly in the US AI data center market, while Kehua faces challenges due to high domestic competition in China. Kstar Highlights - **Investment Recommendation**: Kstar is rated as a "Buy" with a 12-month target price of Rmb67.6, indicating a 26% upside potential [1][2]. - **Valuation**: Kstar is valued at 26x 2028E P/E, reflecting a strong long-term growth outlook with a projected earnings CAGR of 26% from 2028E to 2030E [2]. - **Sales Growth**: Kstar is expected to achieve a total sales CAGR of 27% from 2025E to 2030E, driven by overseas high-power electrical sales, which are projected to increase from Rmb100 million in 2025E to Rmb800 million in 2026E [7][19]. - **Pricing Power**: The overseas ODM model allows Kstar to command a pricing premium of 25-50% compared to domestic orders, contributing to an expected gross profit margin (GPM) of 33% and operating profit margin (OPM) of 18% by 2028E [7][21]. - **Product Pipeline**: Kstar is actively developing next-generation products, including 800V DC and SST systems, with launches planned for early 2026 [10][19]. - **Market Position**: Kstar is gaining market share in the domestic market, particularly with major clients like Alibaba and ByteDance, and is expected to become a significant UPS supplier by 2026 [19]. Kehua Highlights - **Investment Recommendation**: Kehua is rated as "Neutral" with a 12-month target price of Rmb50.5, indicating a 24% downside potential [1][3]. - **Valuation**: Kehua is valued at 30x 2026E P/E, with a lower earnings growth potential of 21% CAGR from 2026E to 2030E compared to Kstar [3]. - **Sales Growth**: Kehua is projected to have a total sales CAGR of 16% from 2025E to 2030E, primarily driven by domestic demand [27]. - **Customer Concentration**: Kehua's growth may be limited due to high customer concentration and intense competition in the domestic market, with a modest sales CAGR of 16% expected [7][39]. - **Overseas Expansion**: Kehua's overseas expansion is slower compared to Kstar, with only 12% of segment sales expected to come from international markets by 2025E [42]. - **Product Portfolio**: Kehua has a strong product portfolio and partnerships with Chinese hyperscalers, but faces challenges in maintaining margins due to competitive pricing pressures [42]. Financial Projections - **Kstar Financials**: - Total revenue is projected to grow from Rmb5,332 million in 2025E to Rmb17,384 million by 2030E [24]. - Expected ROE to improve to 25% by 2030E, up from 16% in 2021-2024 [21]. - **Kehua Financials**: - Total revenue is expected to grow from Rmb4,159 million in 2024 to Rmb7,259 million by 2030E [24]. - ROE is projected to reach 17% by 2030E, still lower than Kstar due to intense domestic competition [43]. Key Risks and Considerations - **Kstar Risks**: Dependence on successful product launches and maintaining competitive pricing in the US market [19]. - **Kehua Risks**: High customer concentration and limited overseas market penetration could hinder growth [42][43]. Conclusion - Kstar presents a more favorable investment opportunity with strong growth prospects and better positioning in the US market, while Kehua faces challenges that may limit its growth potential in the competitive domestic landscape.

证券日报网讯1月13日，科士达（002518）在互动平台回答投资者提问时表示，截至2026年1月9日公司 股东人数约4.4万户。 ...