低压电器行业报告：静待顺周期复苏，智能配电打开远期空间

Investment Rating - The report maintains a "Positive" investment rating for the low-voltage electrical industry, consistent with the previous rating [3]. Core Viewpoints - The low-voltage electrical industry is expected to experience a cyclical recovery driven by macroeconomic policies and the increasing demand for smart distribution systems, particularly in AI data centers and renewable energy sectors [4][5]. - Domestic companies are likely to gain market share through product localization and competitive pricing, as the industry shows a trend towards domestic substitution [4][24]. Summary by Sections 1. Market Overview - The low-voltage electrical market in China is nearly 1 trillion yuan, with applications spanning various sectors including rail transport, telecommunications, commercial buildings, and renewable energy [4][20]. - The industry is characterized by a competitive landscape with both multinational corporations and local firms coexisting, leading to a market structure that favors domestic brands [4][24]. 2. Economic Correlation and Recovery - The low-voltage electrical sector is strongly correlated with macroeconomic cycles and electricity consumption, indicating potential recovery as economic stimulus measures take effect [4][43]. - The real estate sector's stabilization is expected to positively impact the low-voltage electrical market, as it constitutes a significant portion of demand [4][46]. 3. Smart Distribution and AI Data Centers - The growth of AI data centers and the push for smart grid upgrades are anticipated to drive demand for high-end low-voltage electrical products [4][49]. - The smart distribution market is projected to grow significantly, with a market size of 2.58 billion yuan in 2022, fueled by the need for modernization in power distribution systems [4][49]. 4. Investment Recommendations - The report suggests focusing on companies such as Liangxin Co., Chint Electric, and Taiyong Changzheng, which are well-positioned to benefit from the cyclical recovery and long-term growth in AI data centers and renewable energy installations [4][5]. 5. Market Concentration and Domestic Substitution - The market concentration is increasing, with the top three companies holding a combined market share of 37.2%, indicating a trend towards domestic substitution [4][24]. - Domestic brands are becoming more competitive in terms of pricing and performance, which is expected to accelerate the replacement of foreign brands in the market [4][34].