Investment Rating - The investment rating for the company is "Outperform the Market" (maintained) [2][7][8] Core Views - The company reported a revenue of 1.924 billion yuan for the first half of 2025, a year-on-year decrease of 15%, and a net profit attributable to shareholders of 396 million yuan, down 26% year-on-year. The gross margin was 41.6%, down 2.6 percentage points, and the net margin was 20.5%, down 3.1 percentage points [3][5] - The company has made significant progress in its overseas expansion, including the launch of a smart ultrasonic water meter factory in South Africa and successful bids for distribution products in Asia, Africa, and Latin America [5][6] - Domestic business remains stable with over 400 million yuan in orders secured in the first half of the year, including significant wins in power metering and distribution equipment [6] - The company is investing in new energy solutions, having developed key equipment and systems for microgrid solutions, with successful bids in Africa and Latin America [6] Financial Summary - The company expects net profits for 2025-2027 to be 1.016 billion, 1.165 billion, and 1.3 billion yuan respectively, with year-on-year growth rates of 1.4%, 14.7%, and 11.7% [3][7] - Earnings per share (EPS) are projected to be 2.09, 2.40, and 2.68 yuan for the same period, with corresponding valuations of 13.4, 11.6, and 10.4 times [3][7] - The company reported a second-quarter revenue of 1.14 billion yuan, a year-on-year decrease of 15% but a quarter-on-quarter increase of 45%, with a net profit of 255 million yuan, down 20% year-on-year but up 81% quarter-on-quarter [5]

Group 1 - The latest stock price of Wanma Co., Ltd. is 15.90 yuan, an increase of 0.05 yuan from the previous trading day, with a highest intraday price of 16.17 yuan and a lowest of 15.63 yuan, and a total transaction amount of 1.342 billion yuan [1] - The company operates in the power grid equipment and new materials sectors, with main businesses including power cables, communication cables, and polymer materials, and has been actively expanding into emerging areas such as new energy charging piles and robot cables [1] - On August 17, the company announced plans to conduct forward foreign exchange trading of up to 200 million USD to mitigate exchange rate risks [1] - On August 19, the company disclosed a stock repurchase plan of up to 15.6523 million yuan [1] - The company received a warning letter from the Zhejiang Securities Regulatory Bureau on August 17 regarding two information disclosure violations in 2022 [1] Group 2 - On the same day, the net outflow of main funds for Wanma Co., Ltd. was 12.191 million yuan, with a cumulative net outflow of 178 million yuan over the past five days [1]

Investment Rating - The report maintains a "Buy" rating for the energy and new energy sectors, indicating a positive outlook for the industry [7]. Core Insights - The report highlights a strong resilience in demand within the new energy sector, driven by ongoing policy support and market dynamics [2][4]. - The solar industry is entering a phase of high-quality development, with a focus on technological upgrades and market optimization as key competitive factors [4]. - The wind power sector is expected to benefit from a balanced supply-demand structure and strong profitability among companies, particularly in offshore wind projects [4]. Weekly Market Review - From August 11 to August 15, 2025, the Shanghai Composite Index rose by 1.70%, while the Shenzhen Component Index increased by 4.55%, and the ChiNext Index surged by 8.58%. The Shenwan Electric Power Equipment Index outperformed, rising by 5.84% [12]. - Within sub-sectors, solar equipment, wind power equipment, batteries, and grid equipment saw respective changes of +5.80%, +4.80%, +6.65%, and +2.41% [12]. Key Sector Tracking - On August 11, 2025, CATL announced a temporary halt in mining operations at its Jiangxia Mine due to expired mining qualifications, impacting lithium carbonate prices significantly [3][22]. - The report notes that lithium prices are expected to rise above 80,000 RMB per ton in the short term due to supply disruptions, before stabilizing between 70,000 and 80,000 RMB per ton [3][22]. Investment Recommendations - **Solar Power**: The report suggests focusing on silicon material, glass, and battery cell segments that have undergone sufficient corrections, as well as leading manufacturers with new technologies [4]. - **Wind Power**: The report recommends companies like Goldwind Technology and Yunda Shares, highlighting the positive outlook for the domestic wind power supply chain [4]. - **New Energy Vehicles**: The report emphasizes the importance of upstream raw material cost benefits and suggests focusing on leading companies benefiting from industry recovery [5]. Industry Price Data - The report provides insights into the price trends of key materials, including silicon and battery cells, indicating a general upward trend in prices [41][36].

Market Overview - The grid equipment sector increased by 0.11% compared to the previous trading day, with Guangxin Technology leading the gains [1] - The Shanghai Composite Index closed at 3727.29, down 0.02%, while the Shenzhen Component Index closed at 11821.63, down 0.12% [1] Top Performers - Guangxin Technology (code: 920037) closed at 104.45, up 8.08% with a trading volume of 44,900 shares and a transaction value of 463 million [1] - New Special Electric (code: 301120) closed at 16.76, up 7.09% with a trading volume of 613,900 shares and a transaction value of 1.028 billion [1] - Far East Holdings (code: 600869) closed at 6.58, up 6.47% with a trading volume of 1,515,000 shares [1] Underperformers - Changlan Technology (code: 002879) closed at 19.99, down 5.40% with a trading volume of 275,400 shares and a transaction value of 552 million [2] - Dongfang Cable (code: 603606) closed at 52.79, down 3.40% with a trading volume of 155,700 shares and a transaction value of 828 million [2] - Great Wall Electric (code: 600192) closed at 11.40, down 2.81% with a trading volume of 462,100 shares and a transaction value of 527 million [2] Capital Flow - The grid equipment sector experienced a net outflow of 688 million from institutional investors, while retail investors saw a net inflow of 789 million [2][3] - Major stocks like Far East Holdings had a net inflow of 104 million from institutional investors, but a net outflow of 29.88 million from speculative funds [3] - New Special Electric had a net inflow of 54.86 million from institutional investors, with a net outflow of 14.62 million from speculative funds [3]

Group 1 - The electric grid equipment industry in China is experiencing dual opportunities driven by technological upgrades and policy support, particularly in the context of ultra-high voltage (UHV) as a necessity for energy transition [1] - The demand for Gas Insulated Transmission Lines (GIL) is expected to expand during the 14th Five-Year Plan period, indicating a robust development outlook for the sector [1] - New technologies such as AI and blockchain are increasingly empowering the operation of renewable energy, facilitating a shift from a construction-heavy focus to an operation-centric phase in the industry [1] Group 2 - The RWA (Real World Asset) platform has launched in Hong Kong, with renewable energy RWA becoming a representative of "Chinese characteristics" due to its stability and green finance attributes, enhancing the integration of electric grid assets with financial innovation [1] - The Electric Grid ETF (561380) tracks the Hang Seng A-share Electric Grid Equipment Index (HSCAUPG), which reflects the overall performance of listed companies in the electric grid and power equipment sector in China [1] - Investors without stock accounts can consider the Guotai Hang Seng A-share Electric Grid Equipment ETF Initiated Link A (023638) and Link C (023639) for exposure to this sector [1]

Company Overview - Hualing Cable reported a closing price of 12.58 yuan on August 18, down 1.33% from the previous trading day [1] - The stock price fluctuated between 12.11 yuan and 12.70 yuan on that day, with a trading volume of 222,361 lots and a transaction amount of 277 million yuan [1] Business Operations - The company operates in the power equipment sector, focusing on the research, production, and sales of wires and cables [1] - Its products are widely used in various fields, including electricity, rail transportation, and construction [1] Market Activity - Around 9:38 AM on August 18, Hualing Cable experienced a rapid rebound, with a price increase of over 2% within 5 minutes, resulting in a transaction amount of 83.7368 million yuan [1] - On the same day, the net outflow of main funds was 19.4549 million yuan, with a cumulative net outflow of 107 million yuan over the past five days [1]

Core Viewpoint - Beijing Keri's stock price decreased by 0.54% on August 18, closing at 7.42 yuan, with a trading volume of 1.21 billion yuan [1] Company Overview - Beijing Keri operates in the power grid equipment industry, focusing on the research, production, and sales of smart grid equipment [1] - The company's products are primarily used in the power system transmission and transformation sector, including distribution automation and substation automation [1] Shareholder Actions - On August 18, Beijing Keri announced that its controlling shareholder, Keri North, and actual controller, Fu Xiaodong, plan to reduce their holdings by up to 15.35 million shares, representing 2.83% of the total share capital, starting from September 10 for three months [1] - The controlling shareholder intends to reduce 11.47 million shares, while the actual controller plans to reduce 3.88 million shares [1] Capital Flow - On August 18, the net inflow of main funds was 905,200 yuan, accounting for 0.02% of the circulating market value [1] - Over the past five trading days, the cumulative net outflow of main funds reached 13.06 million yuan, representing 0.33% of the circulating market value [1]

Group 1 - The core stock price of Kelu Electronics on August 18 was 7.16 yuan, down 0.42% from the previous trading day [1] - The trading volume on that day was 957,605 hands, with a transaction amount of 686 million yuan and a turnover rate of 6.84% [1] - Kelu Electronics operates in the power grid equipment industry, focusing on smart grids, renewable energy, and energy conservation [1] - The company has strong R&D capabilities in power electronics technology as a listed company in Shenzhen [1] Group 2 - Kelu Electronics' boost converter-integrated machine products have received access certifications in multiple countries, including the US, Latin America, Europe, and Southeast Asia [1] - The company is actively expanding its related business [1] - Information regarding the number of shareholders will be disclosed in the regular reports [1] Group 3 - On August 18, the net outflow of main funds was 34.90 million yuan, accounting for 0.35% of the circulating market value [1] - Over the past five trading days, the cumulative net outflow reached 212 million yuan, representing 2.11% of the circulating market value [1]

Group 1 - The stock price of Hangdian Co., Ltd. is reported at 6.79 yuan, unchanged from the previous trading day, with an opening price of 6.83 yuan, a highest price of 6.83 yuan, and a lowest price of 6.75 yuan, with a trading volume of 182,200 hands and a transaction amount of 124 million yuan [1] - Hangdian Co., Ltd. operates in the power grid equipment industry, focusing on the research, production, and sales of wires and cables, which are widely used in power, telecommunications, and rail transit sectors [1] - On August 18, the company announced that there are no overdue guarantees [1] Group 2 - On August 18, the net outflow of main funds was 8.8775 million yuan, with a cumulative net outflow of 10.1832 million yuan over the past five days [1]

Group 1 - The core stock price of Daye Intelligent as of August 18, 2025, is 7.73 yuan, reflecting an increase of 0.23 yuan or 3.07% from the previous trading day [1] - The trading volume on the same day was 202,700 hands, with a total transaction amount of 156 million yuan [1] - Daye Intelligent specializes in the research, production, and sales of smart grid equipment, with main products including smart distribution terminals and smart electricity terminals [1] Group 2 - As of the announcement date, Daye Intelligent and its subsidiaries have no ongoing external guarantees, no overdue guarantees, and no amounts related to litigation guarantees or losses due to guarantee judgments [1]