Core Viewpoint - The report highlights a decline in revenue and net profit for the company in the first half of 2025, primarily driven by challenges in the energy storage business, while other segments like industrial power supply and electric vehicle charging equipment show growth [3][4][5][6]. Group 1: Financial Performance - In H1 2025, the company achieved revenue of 1.362 billion yuan, a year-on-year decrease of 4.79%, and a net profit of 158 million yuan, down 12.91% [3]. - In Q2 2025, revenue was 758 million yuan, reflecting an 8.87% decline, with net profit dropping 26.04% to 85 million yuan [3]. Group 2: Energy Storage Business - The energy storage segment reported revenue of 284 million yuan in H1 2025, a significant decline of 38.98%, with a gross margin of 27.79%, down 2 percentage points [4]. - The decline in the energy storage business is attributed to immature commercial models in the domestic market and intensified competition in the overseas market [4]. Group 3: Industrial Power Supply Business - The industrial power supply segment saw revenue growth of 11.42% to 280 million yuan in H1 2025, with a gross margin of 58.66%, an increase of 4 percentage points [5]. - The company has gained recognition in the AI and intelligent computing center sectors, positioning itself as a leading brand in the low-voltage power quality market [5]. Group 4: Electric Vehicle Charging and Battery Testing Equipment - The electric vehicle charging equipment business generated revenue of 632 million yuan, up 13.70%, but with a gross margin of 34.86%, down 3 percentage points [6]. - The battery testing and formation equipment segment achieved revenue of 133 million yuan, a growth of 5.61%, but experienced a gross margin decline of 10 percentage points to 39.30% [6].

Investment Rating - The report maintains a "Buy" rating for the company [7] Core Views - The company achieved significant growth in H1 2025, with revenue of 1.884 billion RMB (up 36.39% YoY) and net profit of 243 million RMB (up 56.79% YoY) [1][2] - The strong performance in Q2 2025 was driven by high demand in downstream sectors, particularly in wind and energy storage, alongside effective cost control that improved overall gross margins [1][3] - The company is focusing on core technology platforms and diversifying application scenarios, which is expected to enhance its market position [1] Financial Performance - In Q2 2025, the company reported revenue of 1.111 billion RMB (up 33.33% YoY, up 43.60% QoQ) and a net profit of 137 million RMB (up 38.11% YoY, up 30.34% QoQ) [1][2] - The gross margin for Q2 2025 was 35.44%, an increase of 0.45 percentage points YoY, while the net margin was 12.68%, a slight decrease of 0.50 percentage points YoY due to increased credit impairment losses [2] - The company’s H1 2025 revenue from the new energy control business was 1.524 billion RMB (up 44.97% YoY), while the engineering transmission business revenue was 226 million RMB (up 11.50% YoY) [3] Business Segments - The new energy control business experienced robust growth, benefiting from strong demand in offshore wind and energy storage, although its gross margin decreased due to intensified market competition [3] - The engineering transmission business saw an increase in gross margin to 47.71% (up 8.26 percentage points YoY), attributed to the acceleration of domestic substitution and higher-value projects [3] Product Development and Market Expansion - The company is actively promoting large-capacity power supply and power quality products, with significant growth potential in data centers [4] - The overseas revenue for H1 2025 reached 148 million RMB (up 54.46% YoY), accounting for 7.83% of total revenue, indicating strong growth momentum in international markets [4] Profit Forecast and Valuation - The company’s projected net profits for 2025-2027 are 642 million RMB, 750 million RMB, and 830 million RMB, respectively, with corresponding EPS of 1.41, 1.65, and 1.83 RMB [5] - The report assigns a target price of 48.05 RMB for 2025, based on a PE ratio of 34 times, reflecting confidence in the company’s growth across its various business segments [5]

Core Viewpoint - Shenzhen Hewei Electric Co., Ltd. experienced a significant stock price fluctuation, with a cumulative closing price deviation exceeding 20% over three consecutive trading days from July 29 to July 31, 2025 [2][3]. Group 1: Stock Trading Anomaly - The company's stock price deviation was identified as an abnormal trading situation according to the Shanghai Stock Exchange trading rules [2][3]. - The stock's turnover rates for the last three trading days were 14.55%, 17.65%, and 7.36%, indicating substantial short-term volatility [7]. Group 2: Company Operations and Major Events - The company confirmed that its production and operational activities are normal, with no significant changes in daily operations [4]. - There are no undisclosed major events or information related to the company, its controlling shareholders, or actual controllers, including significant asset restructuring or major transactions [4][6]. Group 3: Product and Market Rumors - The company clarified that its main products remain unchanged, covering wind power generation, photovoltaic products, energy storage, electric drive products, hydrogen power products, and power quality products [5]. - The company addressed market rumors regarding its involvement in HVDC products, stating that it currently does not have such products [5]. Group 4: Management and Shareholding - The company has a share reduction plan for senior management, which was disclosed on July 18, 2025 [6]. - During the stock price fluctuation period, there were no stock trading activities by the controlling shareholders, actual controllers, or senior management [6].

Core Viewpoint - The stock of Hewei Electric (603063.SH) experienced an abnormal trading fluctuation, with a cumulative closing price increase exceeding 20% over three consecutive trading days from July 29 to July 31, 2025 [1] Company Overview - Hewei Electric's main products remain unchanged, which include wind power generation products, photovoltaic power generation products, energy storage products, electrical transmission products, hydrogen power supply products, and power quality products [1] - The company has noted market rumors regarding its involvement in HVDC products; however, it currently does not have any HVDC products [1]

Core Viewpoint - Hezhong Electric (603063.SH) announced that its stock price experienced an abnormal fluctuation, with a cumulative increase of over 20% in closing prices over three consecutive trading days from July 29 to July 31, 2025 [1] Company Overview - The company confirmed that there have been no changes to its main products, which include wind power generation products, photovoltaic power generation products, energy storage products, electric drive products, hydrogen power products, and power quality products [1] - The company noted market rumors regarding its involvement in HVDC products; however, it clarified that it currently does not have any HVDC products [1] Market Awareness - The company urged investors to be aware of the risks associated with secondary market trading, emphasizing the importance of risk awareness to prevent market speculation and to make rational investment decisions [1]

Core Viewpoint - Hezhong Electric has experienced a decline in stock price over six consecutive trading days, with a cumulative drop of -5.81% [1] Company Overview - Shenzhen Hezhong Electric Co., Ltd. (stock code: 603063) focuses on the research, production, sales, and service of new energy and electrical transmission products, including wind power generation products, photovoltaic products, energy storage products, hydrogen power products, power quality products, and electrical transmission products [1] - The company possesses complete independent development capabilities and testing platforms for large power electronic devices and monitoring systems [1] Fund Involvement - Two funds under Guotai Fund have entered the top ten shareholders of Hezhong Electric, both of which are new entries in the first quarter of this year. The funds are Guotai Valuation Advantage Mixed (LOF) A and Guotai Ju Xin Value Advantage Mixed A [1] - Guotai Valuation Advantage Mixed (LOF) A has a year-to-date return of 22.39%, ranking 334 out of 4529 in its category, while Guotai Ju Xin Value Advantage Mixed A has a year-to-date return of 11.06%, ranking 398 out of 2301 [1] Fund Manager Profiles - Wang Zhaoxiang, the fund manager for Guotai Valuation Advantage Mixed (LOF) A, has been with Guotai Fund since August 2014 and has held various positions including researcher and assistant fund manager. He has been the fund manager since June 21, 2022 [3][4] - Cheng Zhou, the fund manager for Guotai Ju Xin Value Advantage Mixed A, has extensive experience in the industry, having joined Guotai Fund in April 2004 and held multiple managerial roles in various funds [4] Company Background - Guotai Fund Management Co., Ltd. was established in March 1998, with its chairman being Zhou Xiangyong and general manager being Li Sheng. The company has three shareholders: China Jianyin Investment Co., Ltd. (60%), Assicurazioni Generali S.p.A. (30%), and State Grid Yingda International Holdings Group Co., Ltd. (10%) [5]

Report Summary 1. Report Industry Investment Rating No information provided. 2. Core Viewpoints - The domestic charging pile market is shifting from emphasizing construction speed to high - quality development, with potential for increased market share and attention to niche applications [22]. - The charging module market requires technology innovation and high - quality development due to high technical barriers [23]. - China's new energy vehicle battery swapping market will grow rapidly with policy support and technological and business model maturation [23]. - The global energy system's low - carbon transformation provides a policy guarantee for the new energy storage industry, and the power market reform creates development space for it [24]. - The company responds to the competition in the energy storage market by enhancing product efficiency, reliability and driving differentiation through innovation [25]. - The company's power quality products have a wide range of applications, and it maintains an advantage in the market through R & D and channel expansion [26]. - The company's products for data centers and smart computing centers benefit from the growth of the AI - related sectors, and it makes forward - looking preparations for this field [27]. 3. Summary by Directory 3.1 Research Basic Information - The research object is Shenghong Co., Ltd., belonging to the power equipment industry. The reception time was May 30, 2025, and the receptionist was Hu Tianshun, the board secretary [16]. 3.2 Detailed Research Institutions - Institutions participating in the research include Great Wall Fortune (other), Boshi Fund (fund management company), Rongyuan Dafang Investment (other), Baoying Fund (fund management company), Jinyuan Securities (securities company), Jianxin Pension (other financial company), Oriental Alpha Fund (fund management company), and Guolian Minsheng (securities company) [17]. 3.3 Research on Company's Business - **Domestic Charging and Battery - Swapping Market**: The domestic charging pile market is moving towards high - quality development, and the battery - swapping market will grow rapidly with policy support [22][23]. - **Energy Storage Market**: The low - carbon transformation of the global energy system and power market reform provide development opportunities for the energy storage industry, and the company takes actions to deal with competition [24][25]. - **Power Quality Products**: The company's power quality products are widely used in over 30 industries, and it maintains market leadership through R & D and channel expansion [26]. - **AIDC Field**: The company's products are used in data centers and smart computing centers, and it makes forward - looking preparations for this field [27].