Core Insights - The A-share market experienced fluctuations and an overall increase last week, with the margin balance reaching 24,936.93 billion yuan and the financing balance at 24,755.28 billion yuan, marking an increase of 6.608 billion yuan in financing balance [1] Industry Summary - Among the 31 industries tracked, 18 saw an increase in financing balance, with the top three industries being: - Electric Power Equipment: Net financing inflow of 10.896 billion yuan - Basic Chemicals: Net financing inflow of 1.858 billion yuan - Pharmaceutical Biology: Net financing inflow of 1.646 billion yuan [1][2] - Conversely, 13 industries experienced a decrease in financing balance, with the largest net outflows in: - Non-banking Financials: Net financing outflow of 2.103 billion yuan - Non-ferrous Metals: Net financing outflow of 1.838 billion yuan - Communications: Net financing outflow of 1.198 billion yuan [1][2] Individual Stock Performance - A total of 124 stocks saw an increase in financing of over 1 billion yuan, with the top ten stocks being: - Tianfu Communication: Net inflow of 1.664 billion yuan - TBEA: Net inflow of 1.647 billion yuan - Sunshine Power: Net inflow of 1.109 billion yuan - Zhongke Shuguang: Net inflow of 0.955 billion yuan - Aters: Net inflow of 0.875 billion yuan - Hanwha U: Net inflow of 0.820 billion yuan - Tongwei Co.: Net inflow of 0.764 billion yuan - Longi Green Energy: Net inflow of 0.736 billion yuan - Dongshan Precision: Net inflow of 0.501 billion yuan - Tuojing Technology: Net inflow of 0.467 billion yuan - All top ten stocks saw an increase in their market performance, with Aters experiencing a rise of over 40% [5][6]

Company Overview - Sunshine Power Co., Ltd. is located in Hefei, Anhui Province, China, and was established on July 11, 2007, with its listing date on November 2, 2011. The company specializes in the research, production, sales, and service of renewable energy power equipment, including solar, wind, energy storage, and electric vehicles [1]. Business Segmentation - The main business revenue composition of Sunshine Power is as follows: Energy storage systems account for 40.89%, photovoltaic inverters and other power electronic conversion devices make up 35.21%, new energy investment and development contribute 19.29%, other sources account for 2.86%, and photovoltaic power station generation represents 1.75% [1]. Market Performance - On November 10, Sunshine Power's stock fell by 5.03%, trading at 190.89 CNY per share, with a total transaction volume of 12.605 billion CNY and a turnover rate of 4.05%. The company's total market capitalization is 395.755 billion CNY [1]. Fund Holdings - According to data from the top ten holdings of funds, one fund under Boyuan Fund has a significant position in Sunshine Power. The Boyuan Youxiang Mixed A Fund (010906) reduced its holdings by 4,000 shares in the third quarter, now holding 7,000 shares, which constitutes 4.61% of the fund's net value, making it the largest holding [2]. Fund Performance - The Boyuan Youxiang Mixed A Fund (010906) was established on March 30, 2021, with a latest scale of 22.98 million CNY. Year-to-date, it has achieved a return of 10.71%, ranking 5833 out of 8219 in its category. Over the past year, it has returned 8.19%, ranking 5651 out of 8125, and since inception, it has returned 2.67% [2]. Fund Management - The fund manager of Boyuan Youxiang Mixed A is Huang Junfeng, who has been in the position for 2 years and 230 days. The total asset scale of the fund is 24.5757 million CNY, with the best return during his tenure being 11.24% and the worst return being 10.08% [3].

Core Viewpoint - The ChiNext 50 ETF (159682) has experienced a decline of over 2% as of the morning close on November 10, with a trading volume exceeding 200 million yuan, indicating significant market activity [1] Group 1: ETF Performance - The ChiNext 50 ETF tracks the ChiNext 50 Index, with industry allocations including manufacturing, information transmission, software, and technology services [1] - Key weighted stocks in the index include CATL, Dongfang Wealth, Xinyisheng, Zhongji Xuchuang, Shenghong Technology, Huichuan Technology, Sunshine Power, and Tianfu Communication [1] - The ETF also includes off-market connecting funds: Connect A (017949) and Connect C (017950) [1] Group 2: Earnings Reports - As of October 31, 2023, 1,388 companies listed on the ChiNext have reported a total revenue of 3.25 trillion yuan for the first three quarters, reflecting a year-on-year growth of 10.69% [1] - The net profit for these companies reached 244.66 billion yuan, with a year-on-year increase of 18.69%, indicating an acceleration in growth compared to the first half of the year [1] Group 3: Market Outlook - According to Industrial Securities, positive factors from the quarterly reports are expected to catalyze a favorable outlook for the technology growth sector [1] - The market's risk appetite is anticipated to rise as the most significant overseas disturbances may be subsiding, coinciding with a phase of positive catalysts from domestic quarterly report validations [1] - Expectations of a potential interest rate cut by the Federal Reserve may further strengthen this trend [1]

Investment Rating - The report maintains an "Outperform" rating for the industry [1] Core Views - The wind power sector is witnessing increased overseas expansion by leading turbine manufacturers, enhancing their profitability and market share [5][10] - Leading photovoltaic (PV) component companies are accelerating their energy storage business layouts, indicating a shift towards integrated solar-storage solutions [5][6] - The energy storage and hydrogen sectors are experiencing positive trends in bidding volumes and prices, suggesting a healthy market environment [6] Summary by Sections Wind Power - Recent actions by top wind turbine companies include signing agreements for significant projects in Saudi Arabia (3GW), the Philippines (2GW), and Costa Rica, indicating a clear trend towards international market expansion [5][10] - The wind power index increased by 2.29% in the week of November 3-7, outperforming the CSI 300 index by 1.47 percentage points, with a current PE_TTM valuation of approximately 26.96 times [4][11] Photovoltaics - Major PV component firms are focusing on energy storage, with partnerships aimed at supplying large-scale battery systems and integrated solar-storage solutions [5][6] - The current market conditions for the PV sector remain challenging, with leading companies reporting losses in the first three quarters of 2025, while the energy storage sector shows better profitability [5][6] Energy Storage & Hydrogen - In October 2025, the domestic energy storage bidding volume reached 29.4GWh, a year-on-year increase of 116%, indicating strong market demand [6] - The average price for 2-hour energy storage systems is reported at 0.628 CNY/Wh, reflecting a slight decrease from the previous month, while the 4-hour systems saw a price increase [6] - The report suggests that the independent energy storage market is maturing, with potential for reasonable returns as policies and market structures evolve [6] Investment Recommendations - For wind power, focus on companies like Goldwind Technology, Mingyang Smart Energy, and Yunda Co., which are expanding their overseas markets [6] - In photovoltaics, attention is drawn to companies like LONGi Green Energy and Aiko Solar, despite short-term supply-demand challenges [6] - In energy storage, recommend companies like Sungrow Power Supply and Haibo Technology, which are well-positioned in both domestic and international markets [6]

Summary of North American Data Center Energy Storage Outlook Industry Overview - The North American data center industry is experiencing a surge in electricity demand, with an expected addition of 13 new data centers by 2026, resulting in an annual growth rate of 30%-40% [1][2][18] - The need for energy storage is driven by this growth, although the economic viability of integrated power sources is still under evaluation [1] Key Insights - The Levelized Cost of Energy (LCOE) for gas turbines in North American data centers is approximately 7-8 cents per kWh, but there is a tight supply of capacity [1][4] - The LCOE for solar plus storage is around 16 cents per kWh (excluding ITC), necessitating high-capacity storage to ensure reliable power supply [1][7] - Data centers typically require energy storage systems to enhance grid stability, smooth frequency and power fluctuations, and meet grid interconnection requirements, with storage capacity usually configured at 10%-20% of total installed capacity for 2-4 hours [1][11] Energy Storage Configuration - A 1GW data center generally requires about 0.7-0.8GW of gas turbine capacity, reflecting a capacity factor of 70%-80% [5] - For a 1GW data center, it is estimated that 16-17GWh of storage and 4-5GW of solar capacity are needed to meet peak demand and ensure continuous power supply [6][10] - The North American large-scale storage market is projected to reach 50-60GWh by 2025 and 70GWh by 2026, driven by the OBB Act and local requirements [18] Competitive Landscape - Tesla holds nearly 40% of the North American energy storage market, followed by Sungrow with approximately 15-20% and Fluence as the third player [19] - Sungrow has signed an 8GWh framework order with AWS, with the first phase of 2GWh already delivered at a price of about $130-140 per MWh [16] - Haibo has rapidly entered the North American market by acquiring a significant portion of the sales team from Canadian Solar and plans to invest in factories and energy storage stations in the U.S. [21][22] Technological Developments - Data centers are increasingly adopting HVDC and SST architectures to balance load fluctuations, with chemical energy storage replacing traditional UPS systems for energy supply during startup [12][8] - The trend towards using energy storage systems as backup power sources is growing, particularly in low-voltage applications, indicating a potential shift away from traditional UPS systems [14] Regulatory and Market Challenges - Haibo is addressing regulatory requirements by establishing joint ventures for local production and sourcing components from partners like Envision and Samsung [23][24] - Sungrow's investment strategy in the U.S. is cautious due to anticipated regulatory challenges, with no immediate plans for overseas battery factories [20] Future Outlook - The North American data center market is expected to continue expanding, with increasing demand for integrated renewable energy and storage solutions as traditional energy sources face capacity constraints [3][19] - The competitive landscape will likely evolve as local manufacturers and international players adapt to regulatory changes and market demands [20][25]

Summary of Sungrow Power Supply Conference Call Company Overview - **Company Name**: Sungrow Power Supply - **Established**: 1997 - **Headquarters**: Hefei, Anhui, China - **Listing**: Shenzhen Stock Exchange since 2011 - **Industry**: New energy equipment, including photovoltaic inverters, wind energy converters, energy storage systems, and floating PV systems - **Market Position**: Second-largest energy storage systems manufacturer globally with a 14% market share in 2024 [9][10] Key Industry Insights US BESS Demand - **Expectation**: Strong US Battery Energy Storage System (BESS) demand anticipated to persist into 2026-27, estimated at around 50GWh in 2026 [1] - **Drivers**: Substantial projects initiated by the end of 2025 to circumvent Prohibited Foreign Entity (PFE) constraints [1] - **Partnerships**: Actively collaborating with global battery suppliers to meet non-PFE requirements [1] - **Tariff Impact**: Existing order tariffs will be shared with customers, potentially impacting earnings by approximately Rmb0.5 billion in 2025 [1] AIDC Influence on BESS - **Growth Projection**: Over 200GWh incremental BESS demand expected from Artificial Intelligence Data Centers (AIDC) between 2025-2030 [2] - **Functions**: 1. Backup power and load volatility management with a 50% attachment rate and 2-hour duration 2. Grid power supply, typically associated with solar, requiring longer durations of over 4 hours [2] Global Market Growth - **Ex-US Demand**: Anticipated robust growth in BESS demand outside the US: - 50% growth in Europe - 50-100% growth in Asia-Pacific (APAC) - Over 60% growth in the Middle East and Africa [3] - **C&I Storage Demand**: Global Commercial & Industrial (C&I) storage demand projected to triple from 20GWh in 2025 to 60GWh by 2060, driven by dynamic electricity pricing [3] - **Profit Margins**: Over 40% Gross Profit Margin (GPM) expected in high-end markets (Europe, Australia) versus less than 10% for shipments to China [3] Financial Performance and Valuation - **Revenue Growth**: Projected revenues from Rmb40.257 billion in 2022 to Rmb200.739 billion by 2029 [5] - **Earnings Growth**: Net earnings expected to rise from Rmb3.593 billion in 2022 to Rmb28.602 billion by 2029 [5] - **Valuation**: Current valuation at 20x 2026E Price-to-Earnings (PE) ratio deemed undemanding, with a "Buy" rating maintained [4] Investment Outlook - **Price Target**: Rmb225.00 with a current price of Rmb200.50 as of November 5, 2025 [6] - **Forecast Returns**: Expected stock return of 13.2%, including a 12.2% price appreciation and a 1.0% dividend yield [8] Risks and Considerations - **Market Risks**: Potential risks include slowing global solar and energy storage demand, slower inverter and energy storage system cost reductions, and lower-than-expected average selling prices (ASP) [10] Additional Insights - **Upcoming Catalysts**: Anticipated positive catalysts include higher US Energy Storage System (ESS) shipments, improved demand in the EU, and more details on new AIDC products [12]

Summary of Key Points from the Conference Call Industry Overview - **Industry**: China Power Sector - **Electricity Demand**: PRC electricity consumption grew by 4.5% year-on-year (y/y) to 888.6 million MWh in September, with a slight deceleration from 4.6% in August [2][8] - **Power Generation Capacity**: New power generation capacity added in September was 21.6 GW, a decrease of 33.9% y/y, with significant drops in solar and wind installations [3][10] Core Insights - **Electricity Demand Breakdown**: - Industrial sector: 64% (+5.7% y/y) - Services sector: 20% (+6.3% y/y) - Residential sector: 14% (–2.6% y/y) - Farming and fishing: 2% (+7.3% y/y) [2][14] - **Power Grid Capital Expenditure (Capex)**: - Total power grid capex increased by 9.9% y/y to RMB 437.8 billion in the first nine months of 2025, but fell by 11.0% y/y to RMB 58.2 billion in September [4][11] - **Utilization Rates**: - Average utilization of power plants decreased by 9.6% y/y to 263 hours in September, with notable declines in thermal, wind, and solar power utilization [5][13] Investment Opportunities - **Top Picks**: - **Sieyuan Electric**: High export growth in power grid equipment [1] - **Goldwind**: Strong sales volume and margin increases in wind equipment [1] - **Sungrow**: Significant growth in energy storage system (ESS) shipments [1] Additional Insights - **Solar Installations**: The decline in solar installations in September was attributed to the end of rush installations following government policy changes [3][10] - **Future Expectations**: Anticipation of a recovery in national power grid capex in October based on delivery schedules from grid equipment manufacturers [1] - **Structural Changes**: Expected declines in wind and solar utilization rates in 2025 due to new capacity being added in less favorable areas [5] Risks - **Goldwind**: Risks include fewer-than-expected new orders and less favorable government policies [29] - **Sieyuan**: Risks include lower-than-expected PRC grid capex and higher raw material costs [31] - **Sungrow**: Risks include slower-than-expected solar installations and intensified trade tensions affecting exports [34]

Market Overview - The Shanghai Composite Index rose by 1.08% last week, closing at 3997.56 points, with a peak of 4012.01 points [1] - The Shenzhen Component Index increased by 0.19%, ending at 13404.06 points, with a high of 13496.7 points [1] - The ChiNext Index saw a 0.65% rise, closing at 3208.21 points, reaching a maximum of 3240.34 points [1] - In contrast, major global indices experienced declines, with the Nasdaq Composite down by 3.04%, the Dow Jones Industrial Average down by 1.21%, and the S&P 500 down by 1.63% [1] - In the Asia-Pacific region, the Hang Seng Index increased by 1.29%, while the Nikkei 225 fell by 4.07% [1] New Stock Issuance - Four new stocks were issued last week, with details as follows: - Nanfang Digital (301638.SZ) on November 7, 2025 - Hengkun New Materials (688727.SH) on November 7, 2025 - Dapeng Industrial (920091.BJ) on November 5, 2025 - Beikuan Testing (920160.BJ) on November 3, 2025 [2] Margin Financing and Securities Lending - The total margin financing and securities lending balance in the Shanghai and Shenzhen markets reached 24857.39 billion, with a financing balance of 24675.74 billion and a securities lending balance of 181.65 billion [3] - This represents an increase of 72.69 billion compared to the previous week [3] - The Shanghai market's margin balance was 12691.71 billion, up by 74.28 billion, while the Shenzhen market's balance was 12165.68 billion, down by 1.59 billion [3] - A total of 3460 stocks had margin buying, with 178 stocks exceeding 1 billion in buying amount, led by Sunshine Power (162.82 billion), Zhongji Xuchuang (115.5 billion), and TBEA (100.09 billion) [3] Fund Issuance - A total of 21 new funds were issued last week, including various bond and mixed funds [5] - Notable funds include: - Lobo Mai CSI A500 Index Enhanced B - Huafu Fuze Six-Month Holding Period Bond A - Penghua Innovation Future Mixed (LOF) A [5] Share Buyback Announcements - There were 21 new share buyback announcements last week, with the highest execution amounts from: - COSCO Shipping Holdings (601919) - Lakala (300773) - Mars (300894) - Jiantou Energy (000600) - Zhongkong Technology (688777) [8] - The top three industries by buyback amount were transportation, non-bank financials, and household appliances [8]

Group 1: Market Performance - The New Energy ETF has a turnover rate of 6.88% during trading, with a transaction volume of 106 million yuan [3] - The latest scale of the New Energy ETF reached 1.534 billion yuan, marking a new high since its inception [3] - In the past three months, the New Energy ETF has seen an increase of 246 million shares, indicating significant growth [3] - Over the last five trading days, the New Energy ETF has attracted a total of 62.2153 million yuan in inflows [3] Group 2: Fund Performance - As of November 7, the New Energy ETF's net value has increased by 72.23% over the past six months, ranking 91 out of 3859 in index equity funds, placing it in the top 2.36% [3] - Since its inception, the New Energy ETF has recorded a maximum monthly return of 25.07%, with the longest streak of consecutive monthly gains being six months and the highest cumulative increase being 67.53% [3] - The average return during the months of increase is 8.57% [3] Group 3: Industry Insights - According to Everbright Securities, the demand for energy storage batteries is expected to grow rapidly by 2026, while the growth of power batteries remains stable [3] - The "anti-involution" policy is anticipated to be the most important investment theme in the photovoltaic industry in 2026, with the silicon material segment expected to achieve capacity clearing and profit recovery first [3] - Companies with differentiated photovoltaic technologies and leading advantages are likely to gain excess profits during industry cycle fluctuations [3] Group 4: Stock Performance - As of October 31, 2025, the top ten weighted stocks in the China Securities New Energy Index include: Sunshine Power, CATL, Longi Green Energy, Eve Energy, TBEA, Huayou Cobalt, Ganfeng Lithium, China Nuclear Power, Tongwei Co., and Lead Intelligent, collectively accounting for 46.1% of the index [6]

Group 1 - The green energy ETF (562010) continues its upward trend, with a nearly 2% increase during trading, marking a four-day consecutive rise and reaching the highest point since February 2023 [1] - Key stocks driving the ETF's performance include Tianhua New Energy, which rose over 7%, and other companies like Enjie, Jiejia Weichuang, and Tianqi Lithium, all showing significant gains [1] Group 2 - The white paper "China's Action on Carbon Peak and Carbon Neutrality" was released on November 8, emphasizing the acceleration of a new energy system and the importance of the 14th Five-Year Plan period (2026-2030) as a critical phase for achieving carbon peak goals [3] - Dongwu Securities forecasts a 40-50% growth in energy storage demand next year due to the gradual introduction of compensation electricity prices and tight supply, alongside unexpected demand from the U.S. Inflation Reduction Act [3] - The upcoming 2025 8th China International Photovoltaic and Energy Storage Industry Conference will take place in Chengdu from November 17-20, highlighting the industry's focus on green energy [3] Group 3 - The green energy ETF passively tracks a green energy index, with the top three sectors being batteries, photovoltaic equipment, and electricity, collectively accounting for over 75% of the index's weight as of the end of October [4] - The top ten weighted stocks in the index include leading companies such as CATL, Sungrow Power, and BYD, indicating a strong concentration in the green energy sector [4]