Core Viewpoint - TBEA Co., Ltd. (特变电工) has seen a significant increase in stock price, reaching a near one-year high, and is planning to issue convertible bonds to fund a coal-to-natural gas project [1][2][3] Group 1: Stock Performance - As of September 19, 2025, TBEA's stock closed at 16.38 CNY, up 10.45% from the previous week [1] - The stock reached a peak price of 16.62 CNY during the week, marking its highest point in nearly a year [1] - The total market capitalization of TBEA is currently 82.765 billion CNY, ranking 2nd in the electric grid equipment sector and 203rd among all A-shares [1] Group 2: Corporate Announcements - On September 19, 2025, TBEA held its ninth temporary board meeting and fifth temporary supervisory meeting, where it approved a revised proposal to issue convertible bonds [2] - The company plans to raise up to 800 million CNY through the issuance of convertible bonds, which will be used for the 20 billion Nm³/year coal-to-natural gas project [2][3] - The bonds will have a term of 6 years, issued at face value of 100 CNY each, with an initial conversion price based on the higher of the average stock price over the last 20 trading days or the previous trading day [2]

Market Overview - The grid equipment sector increased by 0.59% compared to the previous trading day, with Hangdian Co., Ltd. leading the gains [1] - The Shanghai Composite Index closed at 3820.09, down 0.3%, while the Shenzhen Component Index closed at 13070.86, down 0.04% [1] Stock Performance - Notable declines in individual stocks within the grid equipment sector include: - Songsheng Co., Ltd. down 5.68% to 40.65 - Far East Holdings down 4.52% to 7.81 - RIFENG down 3.89% to 12.86 - Sanhui Electric down 3.83% to 23.87 - Honglida down 3.44% to 33.95 [1] Capital Flow - The grid equipment sector saw a net inflow of 247 million yuan from institutional investors, while retail investors experienced a net outflow of 461 million yuan [3] - Key stocks with significant capital flow include: - Tebian Electric with a net inflow of 422 million yuan from institutional investors - Hangdian Co., Ltd. with a net inflow of 80.02 million yuan from institutional investors [3]

Group 1 - The core viewpoint of the news is the performance and business structure of Jiangsu Daye Intelligent Electric Co., Ltd, which saw a stock price increase of 5.09% to 8.26 CNY per share, with a total market capitalization of 2.618 billion CNY [1] - The company was established on December 21, 2011, and went public on July 3, 2017, focusing on technology research, product development, and production services related to power distribution networks, cable protection pipes, and marine engineering equipment [1] - The revenue composition of the company includes intelligent distribution equipment (59.44%), photovoltaic construction (21.43%), marine engineering construction (15.04%), photovoltaic power generation (3.99%), and other sources (0.10%) [1] Group 2 - From the perspective of major circulating shareholders, the fund "Noan Multi-Strategy Mixed A" (320016) entered the top ten circulating shareholders of Daye Intelligent, holding 1.5578 million shares, accounting for 0.69% of circulating shares [2] - The fund has achieved a year-to-date return of 59.64%, ranking 541 out of 8172 in its category, and a one-year return of 124.24%, ranking 257 out of 7980 [2] - The fund manager, Kong Xianzheng, has a tenure of 4 years and 298 days, with a best fund return of 77.68% during his tenure, while Wang Haichang has a tenure of 3 years and 60 days, with a best fund return of 65.18% [3]

Market Overview - The power equipment sector experienced a decline of 0.98% on the previous trading day, with Meishuo Technology leading the drop [1] - The Shanghai Composite Index closed at 3831.66, down 1.15%, while the Shenzhen Component Index closed at 13075.66, down 1.06% [1] Stock Performance - Notable gainers in the power equipment sector included: - Hangdian Co., Ltd. (603618) with a closing price of 9.19, up 10.06% [1] - Xinhongtai (603016) at 29.78, up 10.01% [1] - Far East Holdings (600869) at 8.18, up 9.95% [1] - Other stocks with positive performance included: - Dongfang Electronics (000682) at 11.78, up 3.51% [1] - Sanhui Electric (002857) at 24.82, up 2.48% [1] Capital Flow - The power equipment sector saw a net outflow of 1.55 billion yuan from institutional investors, while retail investors contributed a net inflow of 1.525 billion yuan [2] - The capital flow for specific stocks showed: - Far East Holdings (600869) had a net inflow of 1.62 billion yuan from institutional investors [3] - Dongfang Cable (603606) recorded a net inflow of 1.01 billion yuan [3] Individual Stock Analysis - Meishuo Technology (301295) faced a significant decline of 5.47%, closing at 29.88 [2] - ST Huicheng (002168) dropped by 4.96%, closing at 4.02 [2] - The stock performance of other companies included: - Zhiyang Innovation (688191) down 4.56% at 28.68 [2] - New Wind Power (688663) down 4.40% at 37.83 [2]

Market Overview - On September 17, the market showed a strong upward trend, with the Shanghai Composite Index rising by 0.37%, the Shenzhen Component Index by 1.16%, and the ChiNext Index by 1.95%[2] - The total trading volume reached 2.4 trillion, a slight increase of approximately 30 billion compared to the previous trading day[1] Sector Performance - More than half of the sectors experienced gains, with notable increases in power equipment, automotive, home appliances, coal, and machinery[1] - The main sectors attracting capital include computing power, semiconductors, robotics, and new energy, indicating a high level of market activity[1] Capital Flow - On September 17, net inflows into the Shanghai Stock Exchange amounted to 27.539 billion, while the Shenzhen Stock Exchange saw net inflows of 24.762 billion[3] - The top three sectors for capital inflow were automotive parts, batteries, and power grid equipment, while the sectors with the highest outflows were components, chemical pharmaceuticals, and liquor[3] Policy and Regulatory Developments - The State-owned Assets Supervision and Administration Commission announced plans to promote strategic restructuring of state-owned enterprises to enhance core competitiveness and operational efficiency[4] - Hong Kong's Chief Executive proposed exploring a reduction in the stock settlement cycle to T+1 to attract more overseas companies for secondary listings[5] Industry Dynamics - The Ministry of Industry and Information Technology is focusing on 116 key directions for product and process innovation, including high-performance integrated electric joint modules and precision transmission technologies[7][8] - The 2025 World Energy Storage Conference reported a total planned investment of 24.58 billion in 18 signed projects, covering new batteries, storage systems, and zero-carbon parks[9] Fundraising Activity - In September, 122 new funds were launched, representing a 45.24% increase compared to August, with a notable improvement in fundraising efficiency[11][12] - Foreign institutions have conducted nearly 1,800 research visits to A-share companies since the second half of the year, indicating sustained interest in Chinese assets[13]

Market Performance - The grid equipment sector increased by 1.98% on the previous trading day, with Yangdian Technology leading the gains [1] - The Shanghai Composite Index closed at 3876.34, up 0.37%, while the Shenzhen Component Index closed at 13215.46, up 1.16% [1] Stock Performance - Yangdian Technology (301012) closed at 26.49, up 16.85% with a trading volume of 414,400 shares and a transaction value of 1.03 billion [1] - TBEA (600089) closed at 16.15, up 10.01% with a trading volume of 3.68 million shares and a transaction value of 5.77 billion [1] - Hangzhou Electric (603618) closed at 8.35, up 10.01% with a trading volume of 551,000 shares and a transaction value of 460 million [1] - Other notable stocks include Baoguang Co. (600379) up 9.99%, and Songsheng Co. (301002) up 7.06% [1] Capital Flow - The grid equipment sector saw a net inflow of 846 million from institutional investors, while retail investors contributed a net inflow of 129 million [2] - TBEA experienced a net inflow of 132.7 million from institutional investors but a net outflow of 68.5 million from speculative funds [2] - Yangdian Technology had a net inflow of 108 million from institutional investors, with significant outflows from both speculative and retail investors [2]

Market Overview - The grid equipment sector increased by 0.32% compared to the previous trading day, with Luokai Co., Ltd. leading the gains [1] - The Shanghai Composite Index closed at 3861.87, up 0.04%, while the Shenzhen Component Index closed at 13063.97, up 0.45% [1] Top Performers - Luokai Co., Ltd. (603829) closed at 24.93, up 10.02% with a trading volume of 79,400 shares and a transaction value of 194 million [1] - Hangdian Co., Ltd. (603618) closed at 7.59, up 10.00% with a trading volume of 415,400 shares [1] - Songsheng Co., Ltd. (301002) closed at 41.80, up 8.01% with a trading volume of 120,100 shares [1] - Weiteng Electric (688226) closed at 51.82, up 7.71% with a trading volume of 102,400 shares [1] Underperformers - Kelin Electric (603050) closed at 17.10, down 3.06% with a trading volume of 188,400 shares [2] - Jiusong Electric (301082) closed at 18.57, down 2.26% with a trading volume of 99,200 shares [2] - Tereader (300001) closed at 24.47, down 1.69% with a trading volume of 308,900 shares [2] Capital Flow - The grid equipment sector experienced a net outflow of 841 million from institutional investors, while retail investors saw a net inflow of 716 million [2] - The main capital inflow and outflow for selected stocks in the sector indicate varying investor sentiment [3] Notable Capital Movements - Hangdian Co., Ltd. (603618) had a net inflow of 89.76 million from main capital, but a net outflow of 43.69 million from speculative capital [3] - Luokai Co., Ltd. (603829) saw a net inflow of 30.27 million from main capital, with a net outflow of 8.71 million from speculative capital [3]

Investment Rating - The report maintains a "Buy" rating for the renewable energy sector, indicating a positive outlook for the industry based on recent developments and market trends [4][7]. Core Insights - The report highlights that the recent "anti-involution" actions in the photovoltaic industry have reached the highest strategic level in the country, signaling a positive trend for the sector. The focus is on capacity integration in the silicon material segment and strengthening price regulation across the industry [4]. - The new policy initiatives, including the "New Energy + Storage" market mechanism, are expected to enhance the participation of new energy sources in the electricity market, which will be crucial for the industry's growth [3][22]. - The report emphasizes that the photovoltaic industry is currently at the bottom of its cycle, with future policy strength being a key variable influencing the industry's trajectory. It anticipates a shift towards high-quality development in the medium to long term, driven by technological upgrades and market optimization [4][5]. Weekly Market Review - From September 8 to September 12, 2025, the Shanghai Composite Index rose by 1.52%, while the Shenzhen Component Index and the ChiNext Index increased by 2.65% and 2.10%, respectively. The Shenwan Electric Power Equipment Index saw a modest increase of 0.53%, underperforming the CSI 300 by 0.85 percentage points [12][19]. - Within the sub-sectors, photovoltaic equipment and wind power equipment experienced declines of 3.28% and 2.04%, respectively, while battery and grid equipment saw increases of 1.28% and 1.02% [12][16]. Key Sector Tracking - The report notes the release of the "New Type Energy Storage Scale Construction Special Action Plan (2025-2027)" by the National Development and Reform Commission and the National Energy Administration, which aims to enhance the utilization of new energy storage and optimize resource allocation in the electricity market [3][22]. - The report also mentions the first mechanism electricity prices for renewable energy, with wind power priced at 0.319 yuan/kWh and photovoltaic at 0.225 yuan/kWh, reflecting a decrease of 43% and 19.2% compared to previous benchmark prices [23]. Investment Recommendations - For the photovoltaic sector, the report suggests focusing on companies with clear alpha and those in the silicon material, glass, and battery segments, such as Aiko Solar, Flat Glass Group, and GCL-Poly Energy [4]. - In the wind power sector, the report recommends attention to companies like Goldwind Technology and Yunda Co., which are well-positioned in the domestic wind power supply chain [4]. - The report highlights the rapid growth of the electric vehicle sector in China, recommending investment in battery and structural component manufacturers that benefit from low upstream raw material prices, such as CATL and EVE Energy [5].

Market Overview - The net outflow of main funds in the power equipment sector was 30.79 million yuan, while retail investors saw a net inflow of 92.98 million yuan [2][3] - The overall performance of the power equipment sector showed a decline of 0.18% on the previous trading day, with the Shanghai Composite Index closing at 3860.5, down 0.26% [1] Stock Performance - *ST Huicheng led the decline in the power equipment sector, with a closing price of 4.22 yuan, down 4.95% [2] - Zhongchao Holdings saw a significant increase of 10.02%, closing at 5.16 yuan, with a trading volume of 2.39 million shares [1] - Other notable gainers included Longkai Co., which rose by 10.00% to 22.66 yuan, and Weiteng Electric, which increased by 7.80% to 48.11 yuan [1] Trading Volume and Value - The trading volume for Zhongchao Holdings was 2.39 million shares, with a transaction value of approximately 1.197 billion yuan [1] - The total transaction value for the power equipment sector was highlighted, with significant contributions from stocks like Jinlongyu, which had a transaction value of 860 million yuan despite a decline of 3.42% [2] Fund Flow Analysis - The main funds showed a net inflow in stocks like Wanma Co. and TBEA, while experiencing outflows in stocks like Longkai Co. and Jindian Technology [3] - The net inflow of retail investors was particularly notable in Zhongchao Holdings, indicating strong retail interest despite the overall sector decline [3]

Summary of Conference Call Records Industry or Company Involved - The conference call discusses the performance and outlook of the A-share and Hong Kong stock markets, particularly focusing on the impact of global liquidity, currency fluctuations, and sector performance. Core Points and Arguments 1. **Global Liquidity and Market Performance** Global liquidity easing is beneficial for risk assets, with both Hong Kong and A-shares expected to benefit. The U.S. Treasury's actions, such as increasing short-term debt issuance, may further lower U.S. interest rates, supporting risk asset growth [1][4]. 2. **AH Premium Narrowing** The narrowing of the AH premium is influenced by changes in U.S.-China interest rate differentials and shifts in market expectations regarding China's long-term growth. The AH premium has decreased from 35-40% to below 20% this year [1][5]. 3. **RMB Appreciation and Market Sentiment** The appreciation of the RMB enhances market risk appetite and supports downward space, leading to foreign capital inflows. Historical data shows significant foreign capital inflows during RMB appreciation periods, with passive funds reacting more strongly [1][6]. 4. **Sector Performance in Hong Kong** The technology sector in Hong Kong is poised for a dual boost in valuation and sentiment. Major internet companies are gaining attention for their AI, gaming, and cloud services, despite competitive pressures [1][7]. 5. **Foreign Investment Trends** There is a noticeable increase in foreign interest in Chinese assets, particularly in A-shares and Hong Kong stocks. The inflow of passive funds is outpacing market growth, indicating potential for further allocation increases [1][8]. 6. **Sectoral Benefits from RMB Appreciation** During RMB appreciation, the technology sector leads in performance, while sectors like non-ferrous metals, agriculture, home appliances, and machinery benefit from reduced cost pressures and advantages in overseas markets [1][9][10]. 7. **Investment Recommendations for Hong Kong** Recommendations for Hong Kong investments include a focus on technology, followed by non-bank financials and traditional consumer goods, as these sectors may gain further advantages amid foreign capital inflows and RMB appreciation [1][11]. 8. **Sentiment Indicators for Investment Decisions** Sentiment indicators can objectively measure market participant emotions, providing insights for investment timing. A divergence between personal sentiment and sentiment indicators may signal good entry points [2][12]. 9. **Performance of Overseas Chinese Stocks** The performance of overseas Chinese stocks in the first half of 2025 was stable, with revenue growth around 2% and profit growth around 5%. The financial sector showed slight declines, while non-financial sectors remained robust [1][13][14]. 10. **Sector Highlights in Financial Reports** The technology hardware and new consumption sectors showed strong revenue and profit growth, while the internet and automotive sectors faced challenges but are still in a revenue growth phase [1][15][16]. 11. **Cash Flow and ROE Trends** The cash flow situation for overseas Chinese stocks is improving, with operating cash flow rising and dividend payouts increasing by about 10%. The return on equity (ROE) has slightly improved, driven by net profit margin enhancements [1][18][20]. 12. **Market Dynamics and Future Outlook** The A-share market has shown signs of recovery, with active trading and sector trends becoming more pronounced. The outlook for domestic fundamentals remains positive, with expectations of stabilization in capacity cycles [1][22][23]. 13. **Investment Selection Criteria** Investment selection is based on inventory and capacity cycles, with recommendations for sectors showing signs of recovery and improvement in order trends, such as TMT and high-end manufacturing [1][29]. Other Important but Possibly Overlooked Content - The overall sentiment in the market is influenced by external factors, including U.S. Federal Reserve policies, which are expected to favor growth sectors like pharmaceuticals and technology in Hong Kong [1][25]. - The internal competition in the Hong Kong market is less severe compared to A-shares, providing a more favorable environment for certain sectors [1][19].