Market Overview - The other power equipment sector experienced a decline of 0.15% on January 26, with Xinle Energy leading the drop [1] - The Shanghai Composite Index closed at 4132.61, down 0.09%, while the Shenzhen Component Index closed at 14316.64, down 0.85% [1] Stock Performance - Notable gainers in the other power equipment sector included: - Yishite (300376) with a closing price of 7.65, up 6.40% and a trading volume of 870,500 shares, totaling 656 million yuan [1] - Maigemit (002851) closed at 126.50, up 4.87% with a trading volume of 235,700 shares, totaling 2.964 billion yuan [1] - Kehua Data (002335) closed at 64.40, up 3.60% with a trading volume of 379,000 shares, totaling 243.6 million yuan [1] - Conversely, significant decliners included: - New Funneng (300593) closed at 30.27, down 5.67% with a trading volume of 260,700 shares, totaling 804 million yuan [2] - Haibo Sichuang (688411) closed at 230.92, down 5.61% with a trading volume of 44,000 shares, totaling 1.032 billion yuan [2] - Yingjie Electric (300820) closed at 55.30, down 4.57% with a trading volume of 60,600 shares, totaling 34 million yuan [2] Capital Flow - The other power equipment sector saw a net outflow of 768 million yuan from institutional investors, while retail investors experienced a net inflow of 362 million yuan [2] - The capital flow for specific stocks showed: - Kehua Data (002335) had a net inflow of 237 million yuan from institutional investors, but a net outflow of 126 million yuan from retail investors [3] - Maigemit (002851) had a net inflow of 133 million yuan from institutional investors, with a net outflow of 25 million yuan from retail investors [3] - Yishite (300376) saw a net inflow of 31.97 million yuan from institutional investors, while retail investors had a net outflow of 34.71 million yuan [3]

Investment Rating - The report maintains an "Accumulate" rating for the company [1][3]. Core Insights - The company is expected to stabilize its main business, with positive progress in its AI power supply segment, following its early adoption of the Nvidia supply chain in 2024, leading to a competitive advantage in new product development [1]. - The financial performance for 2025-2026 is projected to improve significantly, particularly with the anticipated growth in AI power supply business, which is expected to contribute to a non-linear increase in profitability [7][15]. Financial Data and Valuation - Total revenue is projected to grow from 6,754 million RMB in 2023 to 20,421 million RMB in 2027, with a compound annual growth rate (CAGR) of approximately 33% [2][28]. - The net profit attributable to shareholders is expected to increase from 629 million RMB in 2023 to 2,501 million RMB in 2027, reflecting a significant growth trajectory [2][28]. - The company's PE ratio is forecasted to decrease from 105.4 in 2023 to 26.5 in 2027, indicating an improving valuation as earnings grow [2][28]. Business Segments - **Smart Home Appliances**: Revenue is expected to reach 40.37 billion RMB in 2025, with a gross margin of 23% [17]. - **Industrial Power Supply**: Projected revenue for 2025 is 24.94 billion RMB, with a gross margin of 22% [14][17]. - **AI Power Supply**: Anticipated revenue growth from 2 billion RMB in 2025 to 70 billion RMB by 2027, with a gross margin of 40% [15][17]. - **Other Businesses**: Expected to show stable growth, contributing positively to overall revenue [16]. Performance Metrics - The company’s gross margin is projected to improve from 24.9% in 2023 to 29.7% in 2027, indicating enhanced profitability [28]. - The return on equity (ROE) is expected to rise from 15.5% in 2023 to 28.8% in 2027, reflecting improved efficiency in generating profits from equity [28]. Market Position - The company is positioned to capture a significant share of the PSU market, with estimated revenues of nearly 4 billion RMB in 2026, which is about half of the market share of its main competitor [7][15].

Market Overview - The other power equipment sector increased by 0.51% on January 23, with Maigemit leading the gains [1] - The Shanghai Composite Index closed at 4136.16, up 0.33%, while the Shenzhen Component Index closed at 14439.66, up 0.79% [1] Top Performers - Maigemit (002851) closed at 120.62, up 5.75%, with a trading volume of 226,500 shares and a transaction value of 2.68 billion [1] - Green Energy Charging (600212) closed at 8.50, up 5.46%, with a trading volume of 484,000 shares and a transaction value of 405 million [1] - Xizi Clean Energy (002534) closed at 18.94, up 4.41%, with a trading volume of 286,700 shares and a transaction value of 536 million [1] Underperformers - Oulu Tong (300870) closed at 218.00, down 3.45%, with a trading volume of 46,500 shares and a transaction value of 1.018 billion [2] - KOTAI Power (300153) closed at 36.31, down 2.21%, with a trading volume of 399,200 shares and a transaction value of 1.458 billion [2] - China Power (600482) closed at 26.60, down 2.13%, with a trading volume of 714,300 shares and a transaction value of 1.947 billion [2] Capital Flow - The other power equipment sector experienced a net outflow of 490 million from institutional investors, while retail investors saw a net inflow of 417 million [2] - The sector's overall capital flow indicates a mixed sentiment, with institutional investors withdrawing funds while retail investors increased their positions [2][3] Individual Stock Capital Flow - Oriental Electric (600875) had a net inflow of 288 million from institutional investors, but a net outflow of 68.94 million from speculative funds [3] - Maigemit (002851) saw a net inflow of 89.72 million from institutional investors and a net inflow of 48.47 million from speculative funds [3] - Xizi Clean Energy (002534) had a net inflow of 53.70 million from institutional investors, but a net outflow of 2.61 million from speculative funds [3]

Group 1 - The graphene concept continues to strengthen, with companies such as Yuzhong Sanxia A, Zhongchao Holdings, and ST Xinhua Jin hitting the daily limit up [1] - Other companies like Zhongtian Technology, Mannesmann, Dao's Technology, Water Holdings, Maigemit, and Greenmei also experienced gains [1]

Company Performance - The stock price of Magmeter has reached a new historical high, with 11 trading days in the past month where the price has set new records [2] - As of 10:09, the stock is up 4.33%, priced at 119.00 yuan, with a trading volume of 8.4397 million shares and a transaction amount of 988 million yuan, resulting in a turnover rate of 1.84% [2] - The latest total market capitalization of the company is 65.459 billion yuan, with a circulating market value of 54.486 billion yuan [2] - The company's Q3 report shows a total operating revenue of 6.791 billion yuan for the first three quarters, representing a year-on-year increase of 15.05%, while net profit is 213 million yuan, a year-on-year decrease of 48.29% [2] - The basic earnings per share are 0.3911 yuan, and the weighted average return on equity is 3.46% [2] Industry Overview - The power equipment industry, to which Magmeter belongs, has an overall increase of 2.91%, with 349 stocks rising and 19 stocks hitting the daily limit [2] - Among the stocks that have declined, Huari shares, Kaifa Electric, and Dayang Electric have seen the largest drops of 3.56%, 3.11%, and 2.09% respectively [2] Margin Trading Data - As of January 22, the latest margin trading balance for Magmeter is 3.688 billion yuan, with a financing balance of 3.657 billion yuan, reflecting an increase of 250 million yuan over the past 10 days, which is a 7.35% increase [2]

Summary of Megmeet (002851.SZ) Conference Call Company Overview - **Company**: Megmeet (002851.SZ) - **Industry**: AI Robotics & Power Supply Key Points Industry Outlook - **2026 as a Pivotal Year**: Megmeet anticipates significant growth in AI server power supply shipments in 2026, driven by an expanded product portfolio and deeper engagements with major Cloud Service Providers (CSPs) [1][2] - **Initial Shipments**: The company has begun initial shipments of server power products, including 5.5kW Power Supply Units (PSUs) and various power shelves, although specific shipment sizes were not disclosed [1] Business Model and Engagement - **Shift in Engagement**: The business model is transitioning from engaging Original Design Manufacturers (ODMs) to direct engagement with CSPs, requiring Megmeet to pass stringent customization tests to gain vendor codes [2] - **CSP Relationships**: The company is actively engaging with major CSPs in the US and China to secure more vendor codes [2] Execution Challenges - **Production Ramp-Up**: Megmeet faces challenges in transitioning from R&D to mass production, with a focus on tracking production efficiency and field performance post-deployment [3][6] - **Complex Supply Chains**: Managing over 200 suppliers and 1,000 components presents significant challenges, particularly in ensuring quality control for AI-grade components [6] Competitive Landscape - **Gap with Global Leaders**: Megmeet acknowledges a gap in R&D strength and manufacturing readiness compared to global leaders like Delta Electronics, but is catching up by launching next-gen products ahead of the adoption timeline [7] - **Co-Design Engagement**: Direct co-design engagement with Nvidia and end-users is seen as a competitive advantage [7] Product Development - **Next-Gen Products**: The company plans to launch official samples of 18kW PSUs and 3U 110kW power shelves in 1Q26, with 800V DC power racks expected in mid-2026 [8] - **Technical Barriers**: Transitioning to 800V DC architecture faces multiple technical challenges, making mass production in 2026 less likely [8] Financial Outlook - **Margin Recovery**: Megmeet expects gradual net margin recovery driven by a better product mix and improved operating leverage as the server power supply business scales [9] - **Overseas Revenue Target**: The company aims for 60% of total revenue to come from overseas markets, up from approximately 40% currently [9] Investment Thesis - **Structural Transformation**: Megmeet is transforming from an automation specialist to a contender in the global AI server power supply market, with a forecasted 5% market share by 2030 [10] - **Valuation**: The 12-month target price is set at Rmb86.8, indicating a downside potential of 16.1% from the current price of Rmb103.5 [14] Risks - **Market Share Dynamics**: Risks include the pace of market share gain within the NVIDIA ecosystem and the execution on mass production [13] - **R&D Cycle Variability**: The length of R&D cycles for 800V DC products and industry adoption rates also pose risks [13] Additional Insights - **Investment Banking Relationships**: Goldman Sachs has investment banking relationships with a significant percentage of companies covered in its research, which may influence objectivity [3] - **Market Cap and Financial Metrics**: Megmeet's market cap is Rmb56.5 billion, with projected revenues increasing from Rmb8.17 billion in 2024 to Rmb16.62 billion by 2027 [14]

Summary of Conference Call Records Industry Overview - The conference call focuses on the AI hardware and power supply sectors, particularly highlighting the developments in HVDC (High Voltage Direct Current) technology and its implications for various companies involved in this space [1][2][3]. Key Points and Arguments AI Hardware Market - North American CSP cloud providers are expected to report earnings in mid-February, with overseas cloud business anticipated to exceed expectations, potentially acting as a catalyst for the AI hardware sector [1][2]. - The GTC conference in March will feature product showcases from companies like NVIDIA and Google, indicating a significant opportunity for investment in AI hardware over the next month [2]. Company Performances - **Maigemit**: - Expected to achieve an order volume of 16,000 AI power cabinets for the year, capturing 16% of the NV system market share, with potential growth to 20% [1][4]. - The total market size for AI power and HVDC is approximately 100 billion, with Maigemit's 20% market share translating to an additional revenue of 20 billion and profit of 4 billion, corresponding to a market valuation of 80 billion [1][4]. - **Youyou Green Energy**: - Noted as the most dynamic player in the HVDC sector, primarily engaged in charging pile modules and collaborating closely with Schneider and ABB [1][6]. - Expected to achieve a profit of 300-350 million in its main business by 2026, with HVDC business contributing an additional 400-500 million in profit [7]. HVDC Technology Developments - Significant changes in HVDC technology are anticipated by 2026, with major clients like ByteDance planning to adopt 40% of their cabinets using ±400V HVDC systems, and Google aiming for 30% with 800V HVDC systems [5]. - The penetration rate of HVDC technology is projected to rise from 0% to 30% by 2026, marking a critical year for the adoption of these systems [5]. Domestic Companies in Global HVDC Supply Chain - Domestic companies such as Yingfeiyuan, Tonghe, and Youyou Green Energy are positioned favorably in the global HVDC supply chain, providing OEM services to international firms due to lower production costs and supply chain advantages [3][8]. - Recommended companies in the HVDC sector include Youyou Green Energy and Tonghe, which are expected to benefit from increased demand for their products [9]. SST (Solid State Transformer) Market - SST is a growing area of interest, particularly for data centers, with companies like Google and Meta setting ambitious targets for net-zero emissions and PUE below 1.2 by 2024, driving demand for SST products [10]. - However, technical challenges have slowed SST product development, with expectations for small-scale deliveries starting in 2027 [10][11]. - Leading companies in the SST field include Yangguang Sifang, with key component suppliers like Telik and Jinqiuhua also being noteworthy [12]. Additional Insights - The AI hardware market is projected to have significant growth potential, with Maigemit being a top recommendation due to its potential market valuation reaching 100 billion [13]. - The overall landscape indicates a robust opportunity for investment in companies that are well-positioned within the AI hardware and power supply sectors, particularly those involved in HVDC and SST technologies [13].

Core Insights - On January 21, Magmi Tech's stock rose by 10.00%, with a trading volume of 2.697 billion yuan [1] - The company recorded a net financing purchase of 218 million yuan on the same day, with a total financing and securities balance of 3.702 billion yuan [1] - As of January 9, the number of shareholders decreased by 16.67% to 55,000, while the average circulating shares per person increased by 20.00% to 8,324 shares [2] Financing and Securities - On January 21, Magmi Tech had a financing purchase of 529 million yuan, with a financing balance of 3.673 billion yuan, accounting for 5.90% of the circulating market value [1] - The financing balance is above the 80th percentile level for the past year, indicating a high position [1] - The company repaid 3,700 shares in securities lending and sold 91,600 shares, with a selling amount of approximately 10.4287 million yuan [1] Business Performance - For the period from January to September 2025, Magmi Tech achieved a revenue of 6.791 billion yuan, representing a year-on-year growth of 15.05% [2] - However, the net profit attributable to shareholders decreased by 48.29% to 213 million yuan [2] - Cumulatively, the company has distributed 468 million yuan in dividends since its A-share listing, with 161 million yuan distributed in the last three years [3] Shareholder Structure - As of September 30, 2025, the top ten circulating shareholders included Hong Kong Central Clearing Limited, holding 7.2803 million shares, a decrease of 7.112 million shares from the previous period [3] - Southern CSI 500 ETF ranked as the sixth largest circulating shareholder, holding 6.3852 million shares, down by 89,500 shares from the previous period [3]

Market Performance - The other power equipment sector increased by 1.69% compared to the previous trading day, with Youyou Green Energy leading the gains [1] - The Shanghai Composite Index closed at 4116.94, up 0.08%, while the Shenzhen Component Index closed at 14255.12, up 0.7% [1] Top Gainers - Youyou Green Energy (301590) closed at 230.78, up 15.38% with a trading volume of 23,200 lots and a transaction value of 507 million [1] - MagiMet (002851) closed at 113.85, up 10.00% with a trading volume of 244,500 lots and a transaction value of 2.697 billion [1] - Tonghe Technology (300491) closed at 29.53, up 5.24% with a trading volume of 183,500 lots and a transaction value of 534 million [1] Other Notable Performers - Keda (002518) closed at 59.49, up 5.01% with a trading volume of 215,100 lots and a transaction value of 1.258 billion [1] - Oulu Tong (300870) closed at 226.89, up 4.31% with a trading volume of 46,000 lots and a transaction value of 1.031 billion [1] - Zhongheng Electric (002364) closed at 31.09, up 4.05% with a trading volume of 352,300 lots and a transaction value of 1.08 billion [1] Market Capital Flow - The other power equipment sector saw a net inflow of 780 million from main funds, while retail funds experienced a net outflow of 407 million [2] - The main funds' net inflow for Dongfang Electric (600875) was 432 million, while it saw a net outflow of 375 million from retail funds [3] - MagiMet (002851) had a main fund net inflow of 430 million, with a significant retail fund outflow of 271 million [3]

Core Viewpoint - The glass substrate industry is experiencing a significant transition from technology validation to early-stage mass production, with expectations for small-scale commercial shipments by 2026 [1] Industry Summary - The semiconductor glass wafer shipment volume is projected to have a compound annual growth rate (CAGR) exceeding 10% from 2025 to 2030 according to Yole Group [1] - Traditional organic substrates are reaching their physical limits in performance as AI computing chips evolve towards larger sizes and higher integration [1] Company Summary - Glass substrates, characterized by lower signal loss, higher dimensional stability, ultra-low flatness, high-density through-hole capability, and finer line width control, are becoming the preferred medium for advanced packaging technologies like CoWoS and HBM by industry giants such as TSMC and Intel [1] - In the semiconductor packaging sector, glass substrates are gradually replacing traditional organic substrates, positioning themselves as a core material for supporting the next generation of advanced packaging developments [1]