Investment Summary - The electronic industry index (CITIC) increased by 44.67% from the beginning of 2025 to December 5, 2025, driven by the innovation wave led by DeepSeek and the continuous iteration of AI applications on the terminal side [3][13][20] - The AI technology-driven innovation in the industrial chain and the recovery of terminal applications are expected to continue to push the electronic industry upward, with the storage sector entering a price increase cycle starting in the second half of 2025 due to supply-demand gaps [3][4][30] Market Review - The electronic sector's performance has outpaced the CSI 300 index, with a notable increase in institutional investment, as evidenced by the total market value held by funds in the electronic sector reaching 937.088 billion yuan, accounting for 5.07% of the circulating A-share market [3][20][25] - The top ten companies by fund holdings in the electronic sector include Maolai Optics, Lanke Technology, and Zhongke Feice, indicating a strong focus on the semiconductor core track [3][21][24] 2026 Investment Outlook - The report suggests capitalizing on the AI innovation cycle by focusing on new technologies, demands, and cycles, with a positive outlook for the following areas: 1. Semiconductor storage: The storage industry is entering an upward cycle driven by explosive demand for AI computing infrastructure, particularly in high-performance storage products like HBM and DDR5 [4][32][58] 2. Semiconductor testing equipment: The demand for testing machines is expected to rise due to the increasing complexity of AI chips and high-performance storage, with the global semiconductor testing equipment market projected to exceed $13.8 billion in 2025 [5][77][81] 3. Magnetic components: The transition to 800V high-voltage direct current (HVDC) architecture is anticipated to accelerate the demand for magnetic components, driven by the increased power requirements of AI servers [6][30][56] Semiconductor Storage - The storage industry is expected to experience a "super cycle" due to the explosive demand for AI computing, with the global storage market projected to approach $300 billion by 2027 [32][36] - The report highlights that AI applications are significantly increasing the demand for storage, with AI servers requiring up to eight times more DRAM and three times more NAND than traditional servers [42][49] - The current inventory levels of NAND and DRAM are at historical lows, and major manufacturers are prioritizing high-margin products for servers, leading to anticipated price increases of at least 20% for DRAM and NAND products [36][40][58] Semiconductor Testing Equipment - The semiconductor testing machine market is expected to grow significantly, with the global market size projected to reach $9.3 billion in 2025 and $9.77 billion in 2026, driven by the increasing complexity of AI chips and high-performance storage [5][77][81] - The report emphasizes the critical role of testing machines in ensuring the quality and reliability of AI chips, as the demand for high-performance computing continues to rise [59][66][72] Magnetic Components - The shift to 800V HVDC architecture is expected to drive the demand for magnetic components, as traditional power supply structures face limitations under increased power demands [6][30][56] - The report identifies key beneficiaries in the magnetic component sector, including companies like Keli Ke and Jingquan Hua, which are positioned to capitalize on the growing demand for efficient power conversion solutions [6][30]

Core Insights - The company reported a revenue of 4.105 billion yuan for the first three quarters of 2023, representing a year-on-year growth of 24.86%, and a net profit of 232 million yuan, up 52.51% year-on-year [1] - In Q3 2023, the company achieved a revenue of 1.438 billion yuan, a 24.10% increase year-on-year, with a net profit of 81.59 million yuan, reflecting a 65.95% year-on-year growth [1] Company Overview - The company specializes in the development, production, and sales of magnetic components such as electronic transformers and inductors, as well as switch power products including power adapters and battery chargers [1] - Its magnetic components are primarily used in sectors like new energy vehicles, photovoltaic energy storage, charging piles, UPS power supplies, AI server power supplies, industrial and consumer power supplies, and medical applications [1] - The company's chargers and switch power products are utilized in network communication, power tools, garden tools, computing servers, industrial equipment, robotics, smart home LED lighting, and instrumentation [1] Market Potential - Research institutions indicate that power supply is a key direction for AI server upgrades, with a market exceeding 15 billion yuan for power magnetic components combined with UPS power supplies [1] - Magnetic components are crucial components in power distribution, accounting for 7% to 8% of power supply costs, with the overall market for server power magnetic components exceeding 5 billion yuan [1] - The data center UPS market is essential, with a market space nearing 10 billion yuan [1] Client Base and Acquisitions - The company has a strong client base, including industry leaders, and expanded its application fields and customer base after acquiring a controlling stake in Haiguang Electronics in 2022 [2] - Haiguang Electronics, established in 1988, specializes in the R&D, manufacturing, and sales of magnetic components, and has been a key supplier for major companies like Huawei for over 20 years [2] - The company’s magnetic components are categorized into three main types: power transformers, switch power transformers, and inductors, with electronic transformers being the leading products [2] R&D Investment - The company is committed to continuous investment in technology R&D, with an allocation of 135 million yuan for R&D in 2024 and 109 million yuan spent in the first three quarters of this year [2]

Core Viewpoint - The company Keleke (002782.SZ) has announced that its magnetic component products can be applied in solid-state battery power systems [1] Group 1 - The application of magnetic components in solid-state battery systems indicates a potential growth area for the company [1]

Core Viewpoint - KeliKe (002782) highlighted its long-term partnership with Haiguang Electronics, a prominent manufacturer of magnetic components in China, emphasizing its strong technical experience and customer resources [1] Company Overview - Haiguang Electronics was established in 1988 and has focused on the research, manufacturing, and sales of magnetic component products [1] - The company has accumulated rich experience in technology, customer resources, and talent reserves, making it a well-known producer and solution provider in the domestic magnetic component market [1] Partnerships and Clientele - Haiguang Electronics has collaborated with Huawei for over 20 years, becoming a major supplier of magnetic components for the company [1] - The company also serves as an important supplier for other notable enterprises such as Sungrow Power Supply (300274), Jinlang Technology (300763), BYD (002594), Weimaisi, Telai Electric, and Yingboer (300681) [1]