Market Performance - The ChiNext Index rose over 3%, while the Shanghai Composite Index increased by 0.61% and the Shenzhen Component Index by 1.73%, with nearly 4500 stocks in the Shanghai and Shenzhen markets experiencing gains [1] Clean Energy Corridor - The world's largest clean energy corridor, consisting of six hydropower stations, has cumulatively generated over 4 trillion kilowatt-hours of electricity, with 235.1 billion kilowatt-hours produced in the first three quarters of this year [1] - The corridor supported grid stability during peak electricity usage, achieving over 89 days with daily generation exceeding 1 billion kilowatt-hours [1] Electric Vehicle Charging Infrastructure - A new action plan aims to double the service capacity of electric vehicle charging facilities by 2027, targeting the establishment of 28 million charging facilities and over 300 million kilowatts of public charging capacity [1] - The plan is expected to accelerate the construction of charging infrastructure, particularly for high-power fast charging equipment, benefiting related charging pile equipment companies [1] Power Equipment Market - The State Grid recently announced a significant increase in the bidding volume for power equipment, with notable year-on-year growth in the bidding amounts for combination electrical devices, isolating switches, and transformers [2] - The new energy storage plan anticipates a total installed capacity of over 180 million kilowatts by 2027, maintaining high demand in the industry [2] Global Power Equipment Demand - A report indicates that global power equipment demand is entering an upward cycle, with global grid investment expected to exceed $400 billion by 2025 [2] - Chinese power equipment exporters are poised to benefit from this demand surge, with significant orders already secured [2] ETF Performance - As of October 20, 2025, the Electric Grid ETF (159320) increased by 2.81%, with the top ten weighted stocks accounting for 51.41% of the ETF [3] - The ETF has shown a year-to-date increase of 52.34%, outperforming the China Securities Electric Grid Equipment Theme Index [3] Fund Metrics - The Electric Grid ETF has a management fee of 0.50% and a custody fee of 0.05%, which are among the lowest in comparable funds [4] - The ETF's recent net inflow was 1.4861 million yuan, with a total of 41.7452 million shares, marking a six-month high [3][4]

Core Insights - The A-share market saw all three major indices rise, with the Electric Grid Equipment ETF (159326) experiencing a slight pullback, down 0.14% as of 9:58 AM, with a trading volume of 70.63 million yuan. Key stocks such as Tongda Co. and Terui De surged, with the former hitting the daily limit and the latter rising over 9% [1] - The Electric Grid Equipment ETF has attracted significant capital, with a net inflow of 199 million yuan over the past seven trading days, reaching a new high of 305 million yuan since its inception [1] - The rapid development of AI technology is driving an explosive increase in global data center electricity demand, necessitating upgrades to the electric grid. The largest U.S. grid operator, PJM, has warned that AI-driven demand has exhausted grid capacity in the most densely populated data center regions, leaving new projects without available electricity [1] Industry Summary - According to Caixin Securities, electric grid investment is expected to remain strong. The elasticity coefficient of electricity consumption in China has been increasing, with new energy consumption demands emerging. The marketization of new energy power trading is fully implemented, leading to a rise in peak electricity loads and widening price differences between peak and valley periods [1] - On the supply side, the penetration rate of new energy in electricity supply is continuously increasing. Major projects such as the Yashan Hydropower Project and ultra-high voltage projects are expected to boost the demand for grid equipment. Both the State Grid and Southern Grid have provided high-level guidance for grid investment construction through 2025, indicating sustained growth in annual grid investment [1] - The Electric Grid Equipment ETF is the only ETF tracking the CSI Electric Grid Equipment Theme Index, with a strong representation in sectors such as power transmission and transformation equipment, grid automation equipment, cable components, and distribution equipment. The ultra-high voltage sector holds a significant weight of 62%, the highest in the market [2]

Group 1 - The A-share market indices collectively rose, with the Electric Grid Equipment ETF (159326) showing a strong increase of 1.31% as of 13:54, driven by significant gains in constituent stocks such as Jinpan Technology, which surged over 18%, and several others reaching the daily limit [1] - From January to September this year, the State Grid Corporation completed fixed asset investments exceeding 420 billion yuan, marking an 8.1% year-on-year increase. Major projects, including ultra-high voltage direct current projects, have been operational, and new significant projects are under construction [1] - Financial analysts predict that the investment in the electric grid will continue to improve, driven by increasing electricity demand and a growing penetration of renewable energy in the supply side, with expectations for the total investment to exceed 650 billion yuan in 2025 [1] Group 2 - The Electric Grid Equipment ETF (159326) is the only ETF tracking the CSI Electric Grid Equipment Theme Index, with a strong representation in sectors such as power transmission and transformation equipment, grid automation equipment, and distribution equipment. The ultra-high voltage segment holds a significant weight of 62%, the highest in the market [2]

Core Insights - The A-share market's three major indices opened higher, with the electric grid equipment ETF (159326) showing a strong performance, gaining 0.58% as of 10:33 AM. Key holdings such as Ankao Zhidian, Igor, Jinpan Technology, Jinzhikeji, Zhongyuan Co., and Shuangjie Electric saw significant increases, with special transformer companies rising over 2% [1] - The electric grid equipment ETF has experienced a net inflow of funds for five consecutive trading days, totaling over 149 million yuan, reaching a total size of 251 million yuan, making it the largest electric grid equipment-themed ETF in the market [1] - The rapid development of AI technology is driving an explosive increase in global data center electricity demand, necessitating upgrades to the electric grid infrastructure. The largest U.S. grid operator, PJM, has warned that the surge in electricity demand driven by AI has led to exhausted grid capacity in the regions with the highest data center density, leaving new projects without available electricity [1] - According to Caixin Securities, investment in the electric grid is expected to remain positive. In recent years, the elasticity coefficient of electricity consumption in China has been increasing, with emerging energy demands continuously emerging. The market-oriented trading of renewable energy generation has been fully implemented, leading to an increase in the maximum electricity load on the demand side and a widening gap between peak and valley electricity prices [1] Industry Overview - The electric grid equipment ETF (159326) is the only ETF in the market tracking the China Securities Electric Grid Equipment Theme Index. The index's constituent stocks are primarily distributed across the sectors of transmission and transformation equipment, grid automation equipment, cable components, communication cables and accessories, and distribution equipment, demonstrating strong representativeness. The weight of ultra-high voltage equipment accounts for as much as 62%, the highest in the market [2]

Report Overview - Report Title: Copper Futures Monthly Report - Date: October 10, 2025 - Researcher: Zhang Ping, Yu Feifei, Peng Jinglin [3] Report Industry Investment Rating - The report does not mention the industry investment rating. Core Viewpoint - Supported by the fundamentals, the copper price will strengthen, and the support level of the main contract of Shanghai copper will rise to 82,000 [9][16]. Summary of Each Section 1. Market Review and Future Outlook 1.1 Market Review - In September, the main contract of Shanghai copper traded between 79,380 and 83,820, with total positions rising 9.7% to 533,000 lots. The spot premium of domestic 1 electrolytic copper dropped to a discount at the end of the month. Social inventories continued to accumulate slightly, and bonded area inventories decreased by 0.21 million tons to 730,000 tons. LME copper traded between 9,844 and 10,485, with total positions up 12% to 300,000 lots. COMEX copper traded between 452.55 and 493.95, with total positions up 36% to 245,000 lots [11]. 1.2 Future Outlook - Fundamentally, the tight supply of raw materials will limit the growth of refinery production in the fourth quarter, while demand is expected to strengthen. Macroscopically, the Fed's interest - rate cuts are beneficial to the copper price. Overall, the copper price is expected to strengthen [9][15][16]. 2. Supply Side: Tight Raw Materials are Spreading to the Smelting End 2.1 Tight Supply - Demand in the Copper Concentrate Market - From January to July 2025, global copper mine supply increased by 536,000 tons to 13.485 million tons. Due to the accident at the Grasberg mine, the global copper mine increment in 2025 is expected to be adjusted down to 450,000 tons. The new project in the second half of 2025 is the second - phase of Julong Copper Mine, with a new capacity of 200,000 tons, but the capacity will be released in 2026. In September, the decline of imported copper concentrate TC slowed down. The demand for copper concentrate in China far exceeds the supply, and the supply - demand tension has intensified [17][18]. 2.2 Intensified Tightness of Cold Materials - In August, the import of anode copper decreased significantly, and the import of scrap copper was stable. The supply of cold materials is expected to remain tight in October, and the upside space for cold material processing fees is limited [20][22]. 2.3 Realization of Refinery Production - Cut Expectations - In September, the electrolytic copper production decreased significantly due to increased refinery maintenance and difficulties in purchasing anode copper. It is expected that the production will continue to decline in October and may further decrease in November due to maintenance plans and tight anode plate supply [25]. 3. Demand Side: Lackluster Peak Season for Copper Products, Resilient Terminal Demand 3.1 Lackluster Peak Season for Domestic Copper Products Production - From January to August, the domestic copper product output reached 16.6 million tons, with a year - on - year growth of 10.7%. In September, the start - up rates of copper rods and their downstream industries were lower than expected, and the peak season was lackluster [28][29]. 3.2 Obvious Recovery in the Automobile Market Driven by National Consumption - Promotion Policies - In August, automobile production and sales increased by 8.7% and 10.1% month - on - month respectively. New energy vehicle production and sales maintained rapid growth, and the export of new energy vehicles increased significantly year - on - year [32][33]. 3.3 Power Grid Investment Growth Offset the Decline in Power Source Investment - From January to August, the power grid investment was 379.576 billion yuan, with a year - on - year growth of 14%. It is expected to further increase to address the imbalance between power source and power grid investment. The power source investment growth is expected to lag behind that of the power grid [35][36]. 3.4 Rebound in Household Appliance Output Growth, Continued Slowdown in Exports - From January to August 2025, the output of air conditioners, refrigerators, and washing machines increased by 6%, 2%, and 8% year - on - year respectively, while the export growth slowed down. Global household appliance production and sales may face downward pressure in 2025 [40]. 3.5 The Downward Cycle of the Real Estate Market Continues - From January to August 2025, real estate investment, new construction, and completion growth rates were - 12.9%, - 19.5%, and - 17% respectively. The real estate market is expected to provide no support for copper demand this year [42][43].

Group 1 - Multiple listed companies have recently announced pre-bid results for State Grid projects, indicating a trend of increasing participation in government contracts [1][2] - Zhejiang Wansheng Intelligent Technology Co., Ltd. is a candidate for a State Grid project with a pre-bid amount of approximately 67.98 million yuan, representing 7.25% of its audited revenue for 2024 [1] - Ningbo Sanxing Medical Electric Co., Ltd. and Hangzhou Haixing Electric Power Technology Co., Ltd. also reported significant pre-bid amounts, with total expected bids of approximately 193 million yuan and 128 million yuan respectively [1] Group 2 - The investment in China's power grid is experiencing rapid growth, with a reported investment of 291.1 billion yuan in the first half of 2025, a year-on-year increase of 14.6% [2] - Equipment investment within the grid construction has seen a substantial increase of 39.6% year-on-year, highlighting a focus on technological advancements [2] - The State Grid is prioritizing investments in areas such as ultra-high voltage projects, digital upgrades of distribution networks, and renewable energy integration [2] Group 3 - In the first half of 2025, the newly connected capacity of wind and solar energy in the State Grid's operational area reached 203 million kilowatts, a remarkable growth of 108.7% year-on-year [3] - The ongoing construction of ultra-high voltage direct current projects is facilitating the transmission of renewable energy from resource-rich western regions [3] - The outlook for future investments in the power grid remains optimistic, with expectations for continued growth driven by increasing clean energy demands [3]

Core Viewpoint - Company has demonstrated robust growth through strategic layout, technological innovation, and market expansion, achieving significant revenue and profit increases in the first half of 2025 [1][2][3]. Financial Performance - In H1 2025, the company reported revenue of 3.618 billion yuan, a year-on-year increase of 37.28%, and a net profit of 62 million yuan, up 68.24% from H1 2024 [2]. - The company's non-recurring net profit surged by 89.08% to 60 million yuan, with basic earnings per share rising by 68.14% to 0.1177 yuan [2]. - Over the past five years, the company's revenue has grown from 1.928 billion yuan in 2020 to 6.201 billion yuan in 2024, achieving a compound annual growth rate of 26.32% [2]. Business Segments Electric Wire and Cable - The electric wire and cable segment continues to be a cornerstone, with new orders in H1 2025 increasing by 80.17%, including a 132.84% rise in orders from the two major state grids [4][5]. - The company secured over 1.5 billion yuan in new orders from state grid projects, reflecting strong market recognition and demand [4][5]. Aluminum Composite New Materials - The aluminum composite new materials segment, operated by a subsidiary, has shown steady growth, with revenue from aluminum strip products reaching 1.397 billion yuan in H1 2025, a 12.60% increase year-on-year [9]. - This segment is expected to benefit from the growing demand for high-performance materials across various industries, including renewable energy and transportation [8][9]. Aerospace Components - The aerospace components segment is emerging as a new growth driver, with revenue of 98 million yuan in H1 2025, a 43.51% increase [10]. - The company is leveraging its technical expertise and relationships in the aviation sector, particularly with the C919 aircraft program, which has a significant order backlog [12][13]. Strategic Outlook - The company is positioned to benefit from the ongoing expansion of the domestic electric grid and the rising demand for high-quality cables, driven by government investment in infrastructure [5][6]. - The aluminum composite materials segment is expected to see increased demand due to the rapid industrialization and urbanization in China, as well as the growth of renewable energy sectors [8][9]. - The aerospace components business is anticipated to grow significantly as the domestic aircraft manufacturing industry expands, providing a substantial market for precision parts [10][12][13].

Core Viewpoint - The company released its 2025 semi-annual report, achieving operating revenue of 732 million yuan in H1 2025, a year-on-year increase of 0.40%, while the net profit attributable to shareholders was 106 million yuan, a year-on-year decrease of 13.12%, significantly impacted by high R&D expenses [1][2] Financial Performance - In H1 2025, the company reported operating revenue of 732 million yuan, a slight increase of 0.40% year-on-year, and a net profit attributable to shareholders of 106 million yuan, down 13.12% year-on-year; the non-recurring net profit was 100 million yuan, down 11.37% year-on-year [2][3] - The subsidiary performance varied, with Changgao Electric experiencing a 16.34% decline in revenue due to delayed project progress, while Changgao Complete saw a revenue increase of 58.87% and net profit growth of 63.32% due to increased product deliveries [3] Industry Outlook - The power equipment industry is experiencing high demand, with national grid investments expected to exceed 650 billion yuan in 2025, and Southern Power Grid planning fixed asset investments of 175 billion yuan, setting new historical highs [1][4] - The demand for UHV construction remains strong, driven by external delivery from the Shagao Desert Base and the need for hydropower delivery from Southwest China [1][4] - The company holds a leading market position in products such as combination electrical devices and isolating switches, actively expanding into high-voltage products to capture industry growth opportunities [1][4][5] Product Development - The company is a major player in high-voltage isolating switches and is expanding its GIS product offerings across various voltage levels, achieving successful bids for 500kV combination electrical devices [5] - The company is investing 96 million yuan to establish a GIL assembly plant, enhancing its capabilities for R&D and production of GIL products in the 220-1000kV voltage range [5] Future Earnings Forecast - The company is projected to achieve net profits attributable to shareholders of 326 million yuan and 407 million yuan for 2025 and 2026, respectively, with price-to-earnings ratios of 14.1x and 11.3x [7]

Core Viewpoint - The company is experiencing high capacity utilization in its main business segments, driven by strong demand from the power grid investment and the electric vehicle sector, with ongoing progress in its European project [1]. Group 1: Capacity Utilization - The company has eight industrial bases in its main business segment, including two for electromagnetic wire and six for wire and cable [1]. - The capacity utilization varies across the wire and cable bases due to differences in product types, customer structures, regional economic levels, and market demand [1]. Group 2: European Project Progress - The company has completed the necessary overseas investment registration for its European project and has obtained relevant certificates from the Hunan Provincial Department of Commerce and the Hunan Provincial Development and Reform Commission [1]. - The company has signed the purchase agreement for the factory (including land), and all tasks are progressing as planned [1].

Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative increase in stock price of over 20% compared to the benchmark index within the next six months [6][11]. Core Views - The company's performance in the first half of 2025 was below expectations, with revenue of 730 million yuan, a year-on-year increase of 0.4%, and a net profit attributable to shareholders of 110 million yuan, a year-on-year decrease of 13.1% [4]. - The decline in profit is attributed to delays in product delivery cycles, while increased R&D expenses have impacted profitability [4]. - The investment climate for the power grid sector is improving, with a 12.5% year-on-year increase in completed investments in power grid projects from January to July 2025 [5]. - The company continues to secure orders and expand its product offerings, including successful bids for its 550kV GIS in national grid procurement [5]. Summary by Sections Company Overview - The latest closing price is 7.22 yuan, with a total market capitalization of 4.5 billion yuan and a circulating market capitalization of 3.7 billion yuan [3]. Financial Performance - In the first half of 2025, the company's gross margin was 37.2%, and net margin was 14.4%, with a rise in sales expense ratio to 6.4% and an increase in R&D expense ratio to 8.4% [4]. - The company forecasts revenues of 2.09 billion yuan, 2.50 billion yuan, and 3.00 billion yuan for 2025, 2026, and 2027 respectively, with net profits of 360 million yuan, 460 million yuan, and 560 million yuan for the same years [6][9]. Market Outlook - The report highlights the ongoing development of new products, including 750kV GIS and energy-efficient transformers, which are expected to contribute positively to future revenue growth [5][6].