Summary of AIDC Circuit Breaker Conference Call Industry Overview - The domestic circuit breaker industry is experiencing opportunities for de-foreignization and expansion into overseas markets, particularly in North America where demand is strong and solutions are rapidly evolving [1][2] - The global supply landscape is currently dominated by foreign companies such as Westinghouse, Siemens, and Schneider, which hold over 90% market share [2] Key Insights and Arguments - Domestic circuit breaker prices are approximately 0.2 to 0.3 yuan per unit, while overseas prices can double to 0.5 to 0.6 yuan per unit, with even higher prices for direct current solutions [3] - The domestic circuit breaker industry has high technical barriers and is concentrated among a few competitive companies, such as Liangxin Co., which has maintained a gross margin above 30% over the past two years, indicating high technical content in its products [1][5] - Liangxin Co. is well-positioned in the industry with strong growth potential, but replacing foreign production will take time. Institutional interest in these leading companies is a positive signal [6] Important but Overlooked Content - Luokai, a core supplier, holds a 10%-20% share in the circuit breaker value chain and has over 50% market share in the high-end market, indicating its critical role in the industry [7][9] - The operation mechanism of circuit breakers accounts for about 10%-20% of the overall value chain, with higher value in high-end applications [8] - Luokai's revenue is projected to reach 150 million yuan in 2025, with a growth rate of 20%-30% expected in the next two to three years [10] Market Trends and Future Outlook - The overseas market for circuit breakers is robust, with expectations of price increases in 2026 due to strong demand [11] - The value disparity between domestic and overseas markets is significant, with domestic single-unit value at approximately 0.3 yuan per watt, while the overall cabinet price is three times that, indicating potential for price increases [12] - Domestic supply chains are expected to capture over 50% of the international market share, as they face less competition from traditional foreign manufacturers [15][16] Liangxin Co. and Luokai's Future Potential - Liangxin Co. has reduced its real estate business to about 10% and is expected to see over 30% growth in its main business this year, with projected revenues of 9 to 10 billion yuan next year [17] - The trend towards integrated cabinets is a key development direction for Liangxin, enhancing its competitiveness and market position [18] - Future trends in the circuit breaker market include a shift towards integrated cabinet manufacturing and increased demand for direct current and solid-state solutions, which will elevate the value of circuit breakers [19][20] Conclusion - Liangxin Co. is currently undervalued and has significant potential for growth in both domestic and international markets, particularly in the areas of integrated solutions, direct current, and solid-state technology [21]