Core Insights - ByteDance has announced a procurement plan for modular data center units in East and North China, set to begin on July 30, 2025, as part of its AI-driven data center (AIDC) strategy aimed at enhancing computing infrastructure for AI model training and applications [1] - ByteDance is currently the largest internet company in China in terms of incremental investment in AI infrastructure, with a projected capital expenditure of 160 billion yuan for 2025, of which approximately 90 billion yuan will be allocated for AI computing power procurement [1] - The remaining 70 billion yuan will be directed towards IDC infrastructure and network equipment procurement, aiming to create a large-scale, self-controlled data center cluster [1] - Major cloud service providers globally are also increasing their capital expenditures, with Google raising its full-year capital expenditure forecast to 85 billion USD, a 62% year-on-year increase, and plans for further increases in 2026 [1] - The procurement plan aligns with the AIDC construction window following the H20 chip unblocking, which is expected to drive explosive growth in demand across the liquid cooling, generator, and server supply chains [1] Company Specifics - Hu塑科技 provides BMS products and services to ByteDance for its self-built and leased data centers [2] - 高澜股份 supplies liquid cooling products to ByteDance, aiding in achieving low energy consumption for data centers [2]

Investment Rating - The mechanical industry maintains a "Market Perform" rating, in line with the overall market performance [1] Core Views - The mechanical sector saw a 7.35% increase in July, outperforming the CSI 300 index by 2.28 percentage points, ranking 10th among 30 major sectors [4][10] - Key sub-sectors such as laser processing equipment, engineering machinery, and elevators showed significant gains, with increases of 15.53%, 13.87%, and 12.52% respectively [4][10] - The report suggests a focus on domestic demand-driven sectors with stable fundamentals and high dividend yields, particularly in engineering machinery, high-speed rail equipment, and mining metallurgy equipment [5] Summary by Sections 1. Mechanical Sector Performance - The mechanical sector's performance in July was strong, with a 7.35% increase, surpassing the CSI 300 index's 5.07% rise [4][10] - The sector's valuation is at a 69.6% percentile compared to the last decade, indicating it is above the average valuation level [16] 2. Engineering Machinery - Excavator sales in June reached 18,804 units, a year-on-year increase of 13.3%, with domestic sales growing by 6.2% [20][29] - The report highlights a sustained recovery in the engineering machinery sector, driven by equipment upgrades and favorable policies [34] 3. Robotics - Industrial robot production in June surged by 37.9%, with a total production of 74,764 units, reflecting a strong upward trend in the industry [35][43] - The report emphasizes the investment potential in the robotics sector, particularly in humanoid robots and core components [43] 4. Shipbuilding - The shipbuilding sector is experiencing a decline in new orders, with a 18.2% year-on-year drop in new orders for the first half of 2025 [45] - Despite this, companies like China Shipbuilding Industry Corporation are expected to see significant profit growth, with projected net profits increasing by 182% to 238% [45]

格隆汇7月29日丨佳驰科技(688708.SH)在互动平台表示，公司目前没有与数据中心相关服务商进行合 作，公司积极关注AIDC的产业发展进程与相关机会。 ...

Group 1 - The company currently has no partnerships with data center service providers [1] - The company is actively monitoring the development process and related opportunities in the AIDC industry [1]

Group 1 - The report highlights that the long-term excess returns of the real estate index are correlated with trends in sales growth and price growth, indicating a cyclical nature in the market [2][7][10] - In the past year, the real estate index has shown a pulsing zigzag pattern characterized by short cycles, high volatility, and strong policy correlation, driven mainly by short-term stimulus policies rather than fundamental recovery [2][10][11] - The average excess return during the last six upward phases of the index reached 13%, with an average duration of 18 days, suggesting potential for new upward movements if positive signals are released from upcoming policy meetings [2][10][11] Group 2 - The report discusses the "anti-involution" theme, emphasizing the orderly exit of backward production capacity to achieve high-quality industry development, with a focus on sectors like steel, pig farming, and cement [30] - The construction of the Yarlung Zangbo River downstream hydropower project, with an investment of approximately 1.2 trillion yuan, is expected to create opportunities in related sectors such as cement, steel materials, and hydropower equipment [33] - The AIDC (Artificial Intelligence Data Center) sector is projected to experience high growth driven by policy and demand resonance, with a target market scale exceeding 280 billion yuan by 2028, indicating strong investment potential in AI infrastructure [37][41]

Investment Rating - The report maintains a "Buy" rating for the company [5] Core Views - The company is a leading enterprise in charging modules, focusing on power electronic products centered around DC power, with balanced development in three strategic directions: new energy vehicles, smart grids, and aerospace [1][5] - The company is expected to achieve stable growth through multi-business collaboration, despite a decline in profitability due to intensified competition in the charging pile market [1][4] Charging Business - In 2024, the charging and swapping business revenue is projected to be 783 million RMB, a year-on-year increase of 20.4%, driven by strong downstream demand, with a total of 4.222 million new charging infrastructure units added in China, up 24.6% year-on-year [2] - The gross margin for this segment is 21.26%, down 6.32 percentage points year-on-year, primarily due to price reductions caused by increased industry competition [2] Smart Grid Business - The smart grid revenue for 2024 is expected to reach 211 million RMB, reflecting a year-on-year growth of 19.5%, with a gross margin of 36.92%, down 1.73 percentage points due to rising raw material costs [3] - The core product in this segment, the power operation power supply, maintains a leading market share, and revenue is expected to grow steadily in 2025 due to increased investment in the power grid [3] Financial Projections - The company’s net profit attributable to shareholders is projected to be 79 million RMB in 2025 and 116 million RMB in 2026, with significant downward adjustments from previous estimates [4][17] - The target price for the company is set at 20.25 RMB, based on a projected PE ratio of 45 times for 2025 [4][5]

Investment Rating - The report maintains a "Positive" investment rating for the industry [5] Core Insights - The report highlights the ongoing price increases in the photovoltaic industry chain, with significant price adjustments for silicon wafers and battery cells, indicating a recovery in market sentiment for solid-state batteries [9][15] - The report emphasizes the importance of monitoring price changes in the industry chain, as well as the progress of mergers and acquisitions in the silicon material sector [15][36] Summary by Sections Photovoltaic - The prices of silicon materials have risen to approximately 47-49 CNY/kg, with silicon wafer prices for 183N, 210RN, and 210N reaching 1.45, 1.65, and 1.93 CNY per piece respectively [21][24] - The report notes that the photovoltaic industry is experiencing a reduction in low-price competition, with a focus on orderly exit of backward production capacity [16][36] - Key recommendations include investing in companies benefiting from this trend, such as Tongwei Co., GCL-Poly Energy, LONGi Green Energy, and Aiko Solar [36] Energy Storage - The introduction of capacity pricing for energy storage in Gansu province strengthens the logic for independent energy storage in China, with a capacity price set at 330 CNY/KW per year for the first two years [41][42] - The report indicates that the domestic energy storage market is expected to see continued growth, driven by favorable policies and increasing demand [39][50] - Recommended companies in this sector include Sungrow Power Supply and Deye Technology, with a focus on large-scale energy storage projects [36] Lithium Battery - The report notes a stable upward trend in the lithium battery sector, with a focus on companies with strong profitability and stable market positions, such as CATL and other quality second-tier companies [16][36] - The sentiment around solid-state batteries is improving, with significant advancements expected in materials and technology [16][39] Wind Power - The report highlights the acceleration of offshore wind projects in China, with expectations for increased profitability in the second half of the year as project deliveries ramp up [16][36] - Recommended companies include Mingyang Smart Energy and Zhongji Innolight, which are well-positioned to benefit from this trend [36] Power Equipment - The report emphasizes the importance of high-voltage direct current (HVDC) projects and the expected approval of new projects in the second half of the year [16][36] - Recommended companies in this sector include Sifang Co. and State Grid Information & Communication, which are expected to benefit from these developments [36] New Directions - The report discusses the potential of humanoid robots and advancements in solid-state battery technology, indicating a positive outlook for companies involved in these areas [16][36]

Investment Rating - The industry investment rating is "Positive" (maintained) [1] Core Viewpoints - The report highlights a strong performance in the global AIDC (Artificial Intelligence Data Center) industry, driven by significant investments in AI-related computing infrastructure and a recovery in chip supply, particularly with the resumption of H20 and MI308 sales [6][16] - The report emphasizes the ongoing construction of data centers by major companies like Meta, which is expected to enhance AI capabilities and sustain performance in the overseas supply chain [17] - The report suggests a focus on seven key industry directions, including AIDC infrastructure, IT equipment, network devices, cloud computing, AI applications, satellite internet, and 6G technology [20] Summary by Sections 1. Weekly Investment Insights - The overseas AI computing industry is showing strong performance, with companies like NewEase and Zhongji Xuchuang expecting significant profit growth in H1 2025, driven by AI-related investments and product optimization [5][14] - The resumption of H20 and MI308 sales is expected to alleviate the domestic chip shortage, benefiting the entire AIDC supply chain [16] - Meta's substantial investment in data center construction is projected to enhance AI capabilities and ensure sustained performance in the overseas supply chain [17] - The report recommends focusing on seven major industry directions for investment, including AIDC infrastructure and AI applications [20] 2. Communication Data Tracking - As of May 2025, the total number of 5G base stations in China reached 4.486 million, with a net increase of 235,000 stations compared to the end of 2024 [28] - The number of 5G mobile phone users reached 1.098 billion, reflecting a year-on-year growth of 21.3% [28] - The report notes a decrease in 5G mobile phone shipments, with 21.19 million units shipped in May 2025, a year-on-year decline of 17% [28] 3. Operator Performance - The report highlights strong revenue growth in cloud computing services among major operators, with China Mobile's cloud revenue reaching 100.4 billion yuan in 2024, a year-on-year increase of 20.4% [44] - The ARPU (Average Revenue Per User) values for major operators remained stable, with slight variations noted [44][50]

Group 1: Market Sentiment and Investment Strategy - The report identifies the "连板空间" (limit-up space) as a key indicator of short-term market sentiment, categorizing it into four phases: emotional freezing period (2-3 limit-ups), chaotic rotation period (4-6 limit-ups), main upward period (7-9 limit-ups), and market climax period (10 limit-ups and above) [2][8][12] - During the market climax period, theme investment shows superior short-term win rates and odds, followed by the chaotic rotation period. However, for mid-term performance (20 trading days), the main upward period outperforms the chaotic rotation period [2][8][12] Group 2: Key Themes - AIDC (Artificial Intelligence Data Center) is experiencing high demand due to policy support, with expectations for performance to exceed forecasts. The market for intelligent computing centers is projected to grow at an annual rate of over 25%, reaching a market size of over 280 billion yuan by 2028 [34][39] - Urban renewal has been highlighted as a significant focus, with the recent Central Urban Work Conference emphasizing the need for high-quality urban development and structural optimization [42][45] - The stablecoin sector is gaining attention as global regulatory frameworks are being established, with recent legislative actions in the U.S. and Hong Kong promoting the internationalization of the renminbi [47][48] Group 3: Policy Dynamics - The State-owned Assets Supervision and Administration Commission (SASAC) is pushing for state capital to concentrate on forward-looking strategic emerging industries, emphasizing technology innovation and industrial integration [55][56] - The National Development and Reform Commission has announced plans to promote the construction of over 100,000 high-power charging facilities by the end of 2027, focusing on the integration of charging networks with existing infrastructure [58][59] - The recent "Action Plan for Measurement Support for New Quality Productivity Development (2025-2030)" aims to address key measurement technology needs across ten priority industries, including AI and new energy [63]

Economic Policy and Market Outlook - The Chinese government emphasizes boosting domestic consumption as a key economic task for 2025, addressing unreasonable restrictions and optimizing trade-in policies[2] - Concerns arise over the effectiveness of consumption policies due to recent retail sales data falling short of expectations, prompting government action to stabilize market confidence[2] Trade and Tariff Developments - President Trump indicates potential drug tariffs by the end of July, with a unified 10% tariff possibly affecting 150 countries[3] - Ongoing trade negotiations with India may lead to agreements before August 1, highlighting trade policy as a significant uncertainty for global markets[3] Technological Advancements and Investments - AI's next wave is expected to focus on robotic systems, enhancing human-machine collaboration in manufacturing over the next decade[4] - Meta plans to invest several hundred billion dollars in AI, aiming to lead in the deployment of large-scale AI infrastructure[4] Energy Sector Insights - National power load in China reaches a record high of 1.506 billion kilowatts, reflecting a 0.55 million kilowatt increase from last year, indicating strong energy demand[4] - The growth in renewable energy generation capacity, particularly in wind and solar, is anticipated to continue at a rapid pace[4] Market Performance Metrics - The latest 10-year government bond yield stands at 1.662%, with a slight change of 0.13 basis points[6] - The DR007 rate is reported at 1.529%, showing a decrease of 4.05 basis points[6] Stock Market Trends - Recent data shows a market turnover of 146.17 billion yuan, with a turnover rate of 3.26%[15] - The financing balance as of July 15, 2025, is reported at 187.73 billion yuan, indicating market liquidity trends[15] Industry Performance Highlights - The top three performing sectors are social services, automotive, and pharmaceutical biotechnology, reflecting current investment interests[18] - Net capital inflows are highest in light manufacturing, automotive, and pharmaceutical sectors, indicating investor confidence in these areas[20] Risk Factors - Potential risks include policy measures falling short of expectations, unexpected adjustments in the real estate market, and escalating tensions in U.S.-China relations[28]