Market Overview - The A-share market experienced a slight increase on June 5, with the Shanghai Composite Index rising by 0.08% to 3378.82 points, the Shenzhen Component Index up by 0.16%, and the ChiNext Index increasing by 0.32% [1][2] - The total market turnover for the half-day session reached 728.469 billion yuan [1] Regulatory Environment - The Shenzhen Securities Regulatory Bureau reported a decrease in illegal securities and futures activities due to strict regulations, but warned that fraud tactics are evolving and becoming more deceptive [3] - Investors are advised to remain vigilant against illegal stock recommendation scams and to practice rational investing [3] Sector Performance - The computing power industry chain showed strong performance, with sectors such as CPO and copper connections leading the gains [4] - The following sectors recorded notable increases: - Copper cable connections: +2.26% - CPO concept: +2.17% - Sports concept: +1.79% [5] Company Insights - Anke Intelligent Electric is seeing stable growth in its cable connection business, with new products like GIL and modular substations driving future growth [8] - Zeyu Intelligent is actively developing in areas such as virtual power plants and AI-powered inspection systems, with recent advancements in smart inspection model algorithms [8] - Zhongheng Electric holds a leading position in HVDC product technology and is expected to benefit from the growing demand driven by the AI technology revolution [8] - Shuangjie Electric, a veteran in the power distribution sector, is focusing on investments in renewable energy in resource-rich areas to drive business growth [8] Upcoming Developments - The National Development and Reform Commission and the National Energy Administration have issued guidelines to accelerate the development of virtual power plants, aiming for a regulation capacity of over 20 million kilowatts by 2027 and over 50 million kilowatts by 2030 [6]

Financial Performance - The fourth quarter accounts for a significant portion of the company's revenue and net profit due to seasonal factors and procurement patterns from major clients like State Grid and Southern Power Grid [1][2]. - The company expects a revenue growth of 13.21% for 2024, with specific segments showing notable increases: cable accessories up 24.28%, GIL up 52.60%, and smart modular substations up 20.02% [8]. Research and Development - The company plans to enhance R&D by shifting from passive to proactive innovation, increasing incentives for innovation, and utilizing PLM tools for better management [2][3]. - Key R&D focuses include smart, lightweight, and environmentally friendly cable connection products, with ongoing efforts to optimize production processes [5]. Market Opportunities - The company anticipates an increase in GIL product market share due to its status as a recognized leader in the industry, with a cost advantage of approximately 30% lower than traditional single-phase GIL [3]. - The upcoming high-voltage projects, such as the Gansu-Zhejiang and Zhejiang ring network, are expected to create significant market opportunities starting in 2025 [10]. Product Innovations - The smart modular substation technology offers a 30% reduction in lifecycle costs and a 50%-70% decrease in land use, with an 80% reduction in construction time compared to traditional substations [4]. - The company has successfully applied its GIL products in various projects, including photovoltaic and data center applications, demonstrating their versatility [13]. International Expansion - The company is focusing on expanding its presence in overseas markets, particularly in Europe, the Middle East, and Southeast Asia, capitalizing on the demand for electrical equipment due to aging infrastructure and AI advancements [7][17]. - Plans include strengthening the sales team, forming partnerships with quality overseas agents, and participating in international trade shows to attract more clients [9][17]. Strategic Focus - In 2025, the company will prioritize enhancing management, risk control, and efficient production to support strategic R&D and market expansion [8]. - The company is exploring innovative business models, such as leasing for smart modular substations, to reduce customer costs and expand market reach [15]. Industry Trends - The "14th Five-Year Plan" is expected to boost investment in power grid construction, presenting both opportunities and challenges for the company, particularly in the context of increasing demand for renewable energy integration [10][12]. - The company is monitoring industry consolidation trends and is open to potential mergers and acquisitions to strengthen its position in the supply chain [14].

Core Viewpoint - The company, Ankao Zhidian, focuses on innovative research and development in the power industry, particularly in cable connection systems, GIL systems, and smart modular substations, aiming to support the development of a new power system and contribute to carbon neutrality goals. Company Overview - Ankao Zhidian is dedicated to providing comprehensive services across the entire power industry chain, including generation, transmission, transformation, distribution, storage, and usage [6][11]. - The company holds various engineering qualifications and has developed core technologies in ultra-high voltage cable transmission and GIL transmission [6][7]. Main Products and Applications - **Cable Connectors**: The company produces a full range of cable connectors from 1kV to 750kV, significantly reducing prices in the domestic market and breaking foreign monopolies [8][12]. - **GIL (Gas Insulated Line)**: Ankao Zhidian has developed GIL products with a capacity range of 10kV to 1100kV, which are used in various power generation and transmission applications [9][13]. - **Smart Modular Substations**: The company’s innovative substations reduce costs by 30%, save 70% in land use, and shorten construction time by 80% compared to traditional substations [10][13]. Market Position and Competition - Ankao Zhidian is a key player in the cable connector market, having participated in the formulation of national standards and significantly impacting pricing and market dynamics [12][13]. - In the GIL sector, the company has established a leading position with its unique products and has a competitive edge over both domestic and international firms [13]. - The smart modular substation market is also competitive, with Ankao Zhidian offering differentiated services to capture market share [13]. Performance Drivers - The acceleration of ultra-high voltage construction is expected to create significant market opportunities for the company’s products, with projected investments in GIL projects ranging from 10 to 20 billion yuan [14][15]. - The "14th Five-Year Plan" emphasizes urban infrastructure development, including resilient and smart grid construction, which aligns with the company’s product offerings [15]. - The rapid growth of electric vehicle ownership is driving demand for enhanced distribution networks, presenting further opportunities for the company’s GIL and smart substation products [15][16]. Recent Developments - The company has successfully developed new products that have received international recognition for their performance, which will support the transition to a low-carbon energy system [20]. - Ankao Zhidian is investing in a new project to produce high-end fluorinated materials, which will enhance its product offerings in environmentally friendly power equipment [21].