Core Viewpoint - The report from China Merchants Securities highlights the challenges of conventional string welding methods for solar cells in space environments, suggesting that the use of a shingled structure could mitigate risks and enhance power efficiency [1][2]. Group 1: Challenges of Conventional String Welding - Conventional string welding faces significant challenges in space applications due to the fragility of ultra-thin silicon wafers, which are prone to cracking during high-temperature welding processes and mechanical stress [1]. - The difference in thermal expansion coefficients between silicon and the welding ribbon increases the likelihood of delamination under extreme temperature variations in space [1]. Group 2: Advantages of Shingled Structure - The shingled structure allows for flexible connections between silicon wafers, reducing the number of solder joints and effectively distributing mechanical stress, which minimizes the risk of micro-cracks [2]. - This structure employs low-temperature curing conductive adhesives, further decreasing the risk of damage to the solar cells [2]. - The shingled design enables zero spacing between solar cells and eliminates shading from solder ribbons, leading to an increase in effective power generation area and higher efficiency under the same solar wing area [2]. Group 3: Proven Reliability of Shingled Technology - The shingled structure has a proven track record in space photovoltaic applications, with the "Shijian-1" satellite launched in 1971 utilizing a shingled design, demonstrating its reliability [3]. - Companies to watch in this sector include ST Jingji, Dike Co., Debang Technology, Polymer Materials, and Aotwei, as they may benefit from the emerging demand for shingled components and conductive adhesives [3].

Investment Rating - The report maintains a strong recommendation for companies such as 帝科股份 (Dike Co., Ltd.) and 聚和材料 (Juhua Materials) [3][4] - ST 京机 (ST Jingji) and 德邦科技 (Debang Technology) are not rated [3] Core Insights - The report highlights the potential application of the tile structure in space photovoltaic systems, which can reduce the risk of damage to solar cells and improve power output per unit area [1][7] - The use of tile structures is expected to create new demand scenarios for conductive adhesives and related equipment, benefiting companies involved in these technologies [1][7] Industry Overview - The industry consists of 308 listed companies with a total market capitalization of 792.4 billion and a circulating market value of 693.8 billion [4] - The industry has shown strong performance with absolute returns of 63.1% over 12 months [6] Key Companies - **ST 京机 (ST Jingji)**: A leader in automated manufacturing technology for photovoltaic modules, with a significant market share and established partnerships in tile technology [8] - **帝科股份 (Dike Co., Ltd.)**: A leading company in photovoltaic silver paste, with a strong market position and potential for growth in space photovoltaic applications [9] - **德邦科技 (Debang Technology)**: A core supplier of conductive adhesives for tile photovoltaic cells, with a strong competitive advantage [10] - **聚和材料 (Juhua Materials)**: A leading company in photovoltaic silver paste, developing copper paste products and addressing domestic supply chain issues [11] - **奥特维 (Aotewi)**: A prominent manufacturer of photovoltaic equipment, with deep reserves in tile technology and a comprehensive solution for vacuum process equipment [12]