Core Insights - The report from CITIC Securities indicates that most segments of the power equipment and new energy industry are at the bottom, but for stock prices to rebound, positive changes are necessary. Currently, there are no additional opportunities for market capitalization recovery due to the lack of significant oversold conditions [1] - The report emphasizes that individual stocks may outperform the industry, and investors need to closely track both the industry and specific stocks. Potential positive changes in the second half of the year include sustained orders in the wind power sector, positive changes in the photovoltaic supply side, and possibly exceeding expectations in lithium battery demand [1] Lithium Battery Sector - The core issue in the lithium battery sector is the uncertainty in demand and a prolonged supply clearing process, leading to a lack of positive signals. Policy impacts on demand create uncertainty, particularly regarding domestic policies and the pace of electrification [2] - On the supply side, disorderly competition has ended, and prices have reached a certain bottom, but the timeline for price increases remains unclear. Some material companies have begun to raise prices, but the extent and sustainability of these increases have not met expectations [2] - Short-term focus should be on high-certainty performance and low-valuation leading segments, particularly in battery, structural components, and materials [2] Photovoltaic Sector - The implied unit profitability of photovoltaic companies is at historical low points, with future recovery dependent on supply clearing and demand growth. The main factors affecting the photovoltaic index over the past year have been expectations regarding industry clearing and inventory reduction [3] - The report suggests focusing on new technologies and cost reduction strategies, particularly in the battery component and silver paste sectors, as these areas are expected to see significant developments [3] Energy Storage Sector - The energy storage sector remains one of the fastest-growing segments in new energy, with significant opportunities outside the U.S. market, particularly in Europe where large storage projects are being developed [4] - In the domestic market, there is uncertainty in the second half of the year, which will depend on policy alignment and execution [4] Power Equipment Sector - The power equipment sector has shown weak performance recently, but the core segments maintain high prosperity. The market is expected to regain confidence as orders and performance materialize [5] - Key areas of focus include high-voltage investments, export opportunities, and data center growth, which are expected to drive future demand [6] Wind Power Sector - The wind power sector is recommended, particularly in the turbine segment, which has seen price increases and is expected to enter a new profit recovery cycle by 2026 [7] - The offshore wind power market is also highlighted, with strong demand expected both domestically and internationally [7] Hydrogen Energy Sector - The domestic green hydrogen projects are entering a production phase, with significant increases in orders for electrolysis equipment noted. The industry is expected to see core marginal changes focused on operational aspects [8] - Upcoming projects are anticipated to achieve green premiums in overseas markets, indicating strong future growth potential [8]

Group 1 - The 3D printing industry in China is experiencing rapid growth, with equipment production increasing by 36%, 11%, and 45% year-on-year from 2023 to Q1 2025, and export volumes rising by 55%, 6%, and 24% during the same period [1] - The market applications of 3D printing have expanded from consumer goods in Europe and the US to include trendy toys in China, and are gradually penetrating functional items such as footwear and helmets [1] - 3D printing is recognized as a strategic emerging industry with strong domestic and international policy support, leading to sustained market growth [1] Group 2 - Tencent's WeGame Game Night is scheduled for June 16, showcasing important game releases and new titles, indicating a positive outlook for the gaming sector [2] - The gaming and media sectors are viewed as one of the best emerging consumer segments, with recent stock price increases in companies like Lehua, Juxing, Alibaba Pictures, Maoyan, and NetEase Music signaling a valuation recovery [2] - The cultural export of gaming and media is just beginning, supported by favorable policies, which presents further growth opportunities [2] Group 3 - The construction of new data centers is on the rise due to the AI wave, with liquid cooling technology becoming essential to address energy consumption challenges [3] - The power density of AIDC cabinets is increasing from traditional IDC levels of 5-15KW to several tens of KW, while traditional air cooling systems have a maximum cooling capacity of 25KW per cabinet [3] - Liquid cooling systems can significantly enhance energy efficiency and reduce overall costs, positioning them to become mainstream in the AIDC era [4] Group 4 - Major corporations like Amazon and Walmart are exploring the possibility of issuing their own stablecoins in the US, indicating a growing interest in digital currencies among large enterprises [5]

Investment Rating - The report assigns a "Buy" rating for the company, with a target price of 10.2 CNY per share based on a 25x PE for 2025 [4]. Core Views - The company is positioned as a leading player in the low-voltage electrical industry, focusing on the "Two Intelligence and One Innovation" strategy to drive transformation and growth. The operational efficiency is expected to improve with the commissioning of the Haiyan factory, and the company is well-prepared for the trends in the AIDC sector and the shift towards direct current (DC) products in data centers [4][16]. - The company anticipates a robust growth trajectory, with projected net profits of 459.2 million CNY, 601.7 million CNY, and 807.1 million CNY for 2025, 2026, and 2027 respectively, reflecting year-on-year growth rates of 47%, 31%, and 34% [4][31]. Summary by Sections 1. Company Overview - The company has transitioned from a traditional low-voltage electrical manufacturer to a provider of intelligent distribution solutions, focusing on high-growth areas such as renewable energy and data centers [16]. - The revenue structure is evolving, with a significant portion expected from the AIDC sector and international markets, particularly in North America and Southeast Asia [18]. 2. Market Dynamics - The report highlights a steady recovery in infrastructure investment and a narrowing decline in real estate demand, with expectations of 20-30% growth in infrastructure-related revenue by 2025 [3]. - The company is leveraging its strengths in the renewable energy sector, with anticipated revenue growth of 20-30% in this area by 2025, driven by increasing demand for energy storage and wind power installations [10][31]. 3. Financial Projections - The company forecasts total revenue of 42.38 billion CNY for 2024, with a slight decline from the previous year, primarily due to weak demand in the real estate sector [31]. - The projected earnings per share (EPS) for 2025 is 0.41 CNY, with a corresponding PE ratio of 20.4 based on the current price [4]. 4. Competitive Landscape - The low-voltage electrical market is characterized by a fragmented domestic landscape, with the company holding a 5% market share, ranking fifth among domestic competitors [54]. - The report notes that the global low-voltage electrical market is dominated by foreign brands, but there is significant potential for domestic brands to expand their international presence [52]. 5. Strategic Initiatives - The company is committed to high R&D investment to support its transition to intelligent distribution solutions, with a focus on enhancing product offerings and market share in the AIDC and renewable energy sectors [31][28]. - The management team, with a strong technical background, is well-equipped to drive the company's strategic transformation and long-term growth [28].

新元肇启-电新行业投资观点 长江证券研究所电力设备与新能源研究小组 2025-06-12 %% %% %% %% %% %% research.95579.com 1 证券研究报告 • 证券研究报告 • 评级 看好 维持 分析师及联系人 | 分析师 邬博华 分析师 曹海花 | 分析师 叶之楠 | 分析师 司鸿历 | | --- | --- | --- | | SAC执业证书编号：S0490522030001 | SAC执业证书编号：S0490520090003 | SAC执业证书编号：S0490520080002 | | | | SFC执业证书编号：BUD284 | | 分析师 王耀 | 分析师 任佳惠 | 分析师 周圣钧 | | SAC执业证书编号：S0490524120006 | SAC执业证书编号：S0490524070005 | SAC执业证书编号：S0490524120003 | | SAC执业证书编号：S0490514040001 SFC执业证书编号：BQK482 分析师 袁澎 SAC执业证书编号：S0490524010001 | | | %% %% research.95579.com 2 01 ...

Group 1: Core Insights - The report emphasizes the importance of advancements in HVDC applications for data centers, highlighting collaborations between companies like VRT and Nvidia to develop next-generation 800V HVDC architecture, which is expected to become mainstream in AI data center power supply systems [1][27] - The solid-state battery industry is progressing with significant developments, including Guoxuan High-Tech's establishment of a pilot line with a designed capacity of 0.2GWh and an energy density of 350Wh/kg, as well as the introduction of industry standards for solid-state batteries [2][62] - The offshore wind sector is anticipated to see a record year for bidding in 2025, with over 25GW of projects approved for bidding, indicating a robust growth trajectory for both offshore and onshore wind installations [3][50] Group 2: Market Performance - In May, the electric power equipment sector outperformed the market, with the sector index rising by 2.17% compared to a 1.85% increase in the CSI 300 index, ranking 18th among 31 primary industries [3][13] - The overall valuation of the electric power equipment sector remained stable, with a PE ratio of 28.4x and a PB ratio of 2.2x as of the end of May [3][18] - Notable stock performances in May included Tongling Co. with a 31.0% increase, Longpan Technology at 18.2%, and Huaguang Huaneng at 14.8% [3][22] Group 3: Key Companies and Investment Focus - The report identifies key companies to watch in the HVDC space, including Hewei Electric and Shenghong Co., which are expected to benefit from early investments in HVDC technology [1][27] - In the solid-state battery sector, companies such as Xiamen Tungsten New Energy and Tiannai Technology are highlighted as significant players in the ongoing industrialization of solid-state batteries [2][63] - The report suggests focusing on companies in the offshore wind sector, including Goldwind Technology and Sany Heavy Energy, as they are poised to benefit from the anticipated growth in offshore wind installations [3][50]

2025 年 06 月 08 日 证券分析师 曾朵红 执业证书：S0600516080001 021-60199793 zengdh@dwzq.com.cn 证券分析师 阮巧燕 海外算力催化利好 AIDC，欧洲电动车再超 预期 增持（维持） [Table_Tag] [Table_Summary] 投资要点 证券研究报告·行业跟踪周报·电力设备 电力设备行业跟踪周报 2025-06-02 《关税缓和需求小幅向上，固态新技 术如火如荼》 2025-06-02 东吴证券研究所 1 / 43 执业证书：S0600517120002 021-60199793 ruanqy@dwzq.com.cn 研究助理 许钧赫 执业证书：S0600123070121 xujunhe@dwzq.com.cn 行业走势 -14% -10% -6% -2% 2% 6% 10% 14% 18% 22% 26% 2024-6-11 2024-10-9 2025-2-6 2025-6-6 电力设备 沪深300 相关研究 《马斯克回归 Optimus 量产在即，汽 车反"内卷式"竞争》 ◼ 电气设备 6714 上涨 1.38%，表现强于大盘。本周 ...

Group 1: Industry Developments - The successful launch of the world's first "space computing constellation" by China last month has set a precedent for space-based data centers [1] - Starcloud plans to send a satellite equipped with NVIDIA H100 chips into space in August, aiming to establish a gigawatt-level data center powered by a large solar array [1] - The AI revolution is driving new infrastructure development, with supportive policies and active investments from internet cloud providers and operators, leading to a new growth cycle for data center service providers [1] Group 2: AI Model Advancements - Since 2025, domestic AI large models have accelerated technological leaps through algorithm and engineering innovations, with DeepSeek-R1's inference capabilities comparable to OpenAI's models [2] - Alibaba has released a trillion-level MoE architecture model Qwen2.5-Max, while Doubao leverages ByteDance's ecosystem to enhance model capabilities [2] - The demand for AI models is surging, prompting major cloud players to significantly increase their capital expenditures [2] Group 3: Company Insights - Xiechuang Data focuses on AIDC computing infrastructure, providing integrated services through "hardware manufacturing + cloud services + circular economy" [3] - Kehua Data leverages power electronics technology to offer a unique "hardware + service + energy" integrated solution in the AIDC sector [3] - Zhongji Xuchuang is driven by technology and plays a crucial role in global computing infrastructure construction, being a key player in the AIDC industry chain [3]

Investment Rating - The report maintains an "Outperform the Market" rating for the communication industry [4][5][60]. Core Insights - The communication industry is experiencing a high demand for AI-related technologies, with companies like Broadcom and Credo reporting significant revenue growth driven by AI applications [1][12][18]. - Broadcom's new Tomahawk 6 switch chip, capable of 102.4 Tbps, is designed to support large-scale AI networks, indicating a strong focus on enhancing AI infrastructure [1][15][17]. - Credo's revenue for Q4 of FY2025 increased by 180% year-over-year, reflecting the growing demand for AI solutions in cloud services [1][18]. - Wistron reported record revenue in May 2025, driven by a surge in server shipments, highlighting the robust growth in the data center segment [1][23]. Summary by Sections Industry News Tracking - Broadcom's Q2 FY2025 revenue reached 150 billion CNY, a 20% year-over-year increase, with AI revenue exceeding 44 billion CNY, growing by 46% [1][12][14]. - Credo's Q4 FY2025 revenue was 1.70 billion USD, up 179.7% year-over-year, with a net profit margin of 38.4% [1][18][21]. - Wistron achieved a record revenue of 208.4 billion TWD in May 2025, marking a 162.14% increase year-over-year [1][23]. Market Performance - The communication sector index rose by 5.27% this week, outperforming the Shanghai Composite Index, which increased by 0.88% [2][47]. - Sub-sectors such as optical modules and enterprise communication showed strong performance, with increases of 13.37% and 6.35% respectively [2][51]. Investment Recommendations - Focus on AI development in both cloud and edge computing, with specific attention to companies involved in optical devices and modules [3][55]. - Long-term investment in major telecom operators is recommended due to their stable operations and increasing dividend payouts [3][55]. - Key recommended stocks include China Mobile, Tianfu Communication, and Runze Technology [3][55].

Investment Rating - The report maintains an "Outperform the Market" rating for the communication industry [4][5][59]. Core Insights - The communication industry is experiencing a high demand for AI-related technologies, with companies like Broadcom and Credo reporting significant revenue growth driven by AI applications [1][12][18]. - Broadcom's new Tomahawk 6 switch chip, capable of 102.4 Tbps, is designed to support large-scale AI networks, indicating a strong focus on enhancing AI infrastructure [1][15][17]. - Credo's revenue for Q4 of FY2025 increased by 180% year-over-year, reflecting the growing demand for AI solutions in cloud services [1][18]. - Wistron reported record revenue in May 2025, driven by a surge in server shipments, highlighting the robust growth in the data center segment [1][23]. Summary by Sections Industry News Tracking - Broadcom's Q2 FY2025 revenue grew by 20% year-over-year, with AI business revenue exceeding $4.4 billion, up 46% [1][14]. - Credo's Q4 FY2025 revenue reached $170 million, a 179.7% increase year-over-year, with plans for significant capital expenditure to support growth [1][18][21]. - Wistron achieved a record revenue of NT$208.4 billion in May 2025, a 162.14% increase year-over-year, with server shipments rising by 47% [1][23]. Market Performance - The communication sector index rose by 5.27% this week, outperforming the CSI 300 index, which increased by 0.88% [2][46]. - Sub-sectors such as optical modules, IDC, and enterprise communication showed strong performance, with optical modules increasing by 13.37% [2][50]. Investment Recommendations - Focus on AI development in both cloud and edge computing, with particular attention to optical devices and modules [3][54]. - Long-term investment in major telecom operators is recommended due to their stable operations and increasing dividend payouts [3][54]. - Key recommended stocks include China Mobile, Tianfu Communication, Guanghe Technology, and Runze Technology for the upcoming week [3][54].

Report Summary 1. Report Industry Investment Rating No information provided. 2. Core Viewpoints - The domestic charging pile market is shifting from emphasizing construction speed to high - quality development, with potential for increased market share and attention to niche applications [22]. - The charging module market requires technology innovation and high - quality development due to high technical barriers [23]. - China's new energy vehicle battery swapping market will grow rapidly with policy support and technological and business model maturation [23]. - The global energy system's low - carbon transformation provides a policy guarantee for the new energy storage industry, and the power market reform creates development space for it [24]. - The company responds to the competition in the energy storage market by enhancing product efficiency, reliability and driving differentiation through innovation [25]. - The company's power quality products have a wide range of applications, and it maintains an advantage in the market through R & D and channel expansion [26]. - The company's products for data centers and smart computing centers benefit from the growth of the AI - related sectors, and it makes forward - looking preparations for this field [27]. 3. Summary by Directory 3.1 Research Basic Information - The research object is Shenghong Co., Ltd., belonging to the power equipment industry. The reception time was May 30, 2025, and the receptionist was Hu Tianshun, the board secretary [16]. 3.2 Detailed Research Institutions - Institutions participating in the research include Great Wall Fortune (other), Boshi Fund (fund management company), Rongyuan Dafang Investment (other), Baoying Fund (fund management company), Jinyuan Securities (securities company), Jianxin Pension (other financial company), Oriental Alpha Fund (fund management company), and Guolian Minsheng (securities company) [17]. 3.3 Research on Company's Business - **Domestic Charging and Battery - Swapping Market**: The domestic charging pile market is moving towards high - quality development, and the battery - swapping market will grow rapidly with policy support [22][23]. - **Energy Storage Market**: The low - carbon transformation of the global energy system and power market reform provide development opportunities for the energy storage industry, and the company takes actions to deal with competition [24][25]. - **Power Quality Products**: The company's power quality products are widely used in over 30 industries, and it maintains market leadership through R & D and channel expansion [26]. - **AIDC Field**: The company's products are used in data centers and smart computing centers, and it makes forward - looking preparations for this field [27].