Group 1: AIDC Power Equipment and Grid Industry - The AIDC power equipment sector has seen a general increase in the past two weeks, with the top three performers being uninterruptible power supplies (UPS) at +21.0%, high voltage direct current (HVDC) at +20.7%, and battery backup power (BBU) at +15.9% [1] - Recommendations for investment focus include four key areas: transformers and switchgear, UPS and HVDC, active power filters (APF), and server power supplies, with specific companies suggested such as Jinpan Technology, Mingyang Electric, Hezhong Electric, Shenghong Co., and Weilan Lithium [1] - For the grid sector, the national power engineering investment completion amount in July 2025 was 65.3 billion yuan, down 8.9% year-on-year, while the cumulative investment from January to July was 428.8 billion yuan, up 3.1% year-on-year [1] Group 2: Wind Power Industry - In July 2025, China's newly installed wind power capacity was 2.28 GW, a decrease of 44.0% year-on-year, while the cumulative new capacity from January to July reached 53.67 GW, an increase of 79.4% year-on-year, totaling 574.87 GW, which accounts for 15.7% of total installed capacity [1] - The wind power sector has also experienced a general increase in the past two weeks, with the top three performing segments being bearings at +14.9%, complete machines at +12.5%, and blades at +11.7% [1] Group 3: Offshore Wind and Onshore Wind Developments - Major projects in Jiangsu and Guangdong for offshore wind are set to commence in the first half of 2025, with expectations for planning, competitive allocation, bidding, and policies to be implemented in the second half of the year [2] - The annual average offshore wind installation during the 14th Five-Year Plan period is expected to exceed 20 GW, significantly surpassing the previous plan's levels [2] - The onshore wind industry is projected to reach 100 GW of installed capacity in 2025, marking a historical high, with component manufacturers experiencing simultaneous increases in volume and price, leading to substantial growth in annual performance [2] Group 4: Public Utilities and Environmental Protection - In August, the industrial power generation volume increased by 1.6% year-on-year, totaling 936.3 billion kWh, while the cumulative generation from January to August was 6419.3 billion kWh, reflecting a 1.5% year-on-year growth [3] - The Guangdong Provincial Development and Reform Commission and Energy Bureau released a plan to deepen the market-oriented reform of renewable energy grid pricing, with existing project pricing set at 0.453 yuan per kWh [3]

Group 1: AIDC Power Equipment Industry - The AIDC power equipment sector has seen significant growth, with the top three performers being uninterruptible power supplies (UPS) at +21.0%, high voltage direct current (HVDC) at +20.7%, and battery backup power (BBU) at +15.9% [7] - Key companies in the sector include Kehua Data (+34.6%), Zhongheng Electric (+27.2%), and Xinwangda (+24.3%) [7] - The industry is expected to benefit from the ongoing domestic replacement of computing chips, with a shift in the data center value chain towards Chinese companies anticipated in 2025 [7][8] - Investment in national power engineering reached 653 billion yuan in July 2025, a year-on-year decrease of 8.9%, while cumulative investment for the first seven months was 4.288 trillion yuan, up 3.1% [9] Group 2: Wind Power Industry - As of September 2025, the cumulative public tender capacity for wind turbines in China is 68.6 GW, a decrease of 13% year-on-year, with onshore wind accounting for 64.3 GW [13] - The average winning bid price for onshore wind turbines (excluding towers) in 2025 is 1,533 yuan/kW [13] - The wind power sector has shown strong performance recently, with the top three segments being bearings (+14.9%), complete machines (+12.5%), and blades (+11.7%) [13] - The industry is expected to see significant growth in offshore wind projects, with annual installations projected to exceed 20 GW during the 14th Five-Year Plan period [13] Group 3: Home Appliance Industry - In August 2025, the production and sales of air conditioners exceeded expectations, with domestic sales increasing by 1% and exports declining by 4% [17] - The overall home appliance export value decreased by 6.2% year-on-year, with air conditioner exports under pressure while refrigerator exports saw a rebound [18] - The U.S. home appliance retail sales grew by 2.6% year-on-year in August, indicating stable demand despite tariff impacts [19] - The home appliance sector's relative performance increased by 2.04% recently, with key recommendations including Midea Group, Gree Electric, and Haier Smart Home [20] Group 4: Public Utilities and Environmental Protection - In August 2025, the industrial power generation volume increased by 1.6% year-on-year, with significant developments in renewable energy projects [21] - The Guangdong provincial government has released a plan to promote high-quality development in renewable energy, with specific pricing mechanisms for offshore wind and solar projects [21][22] - The public utilities sector is expected to benefit from ongoing policy support for renewable energy, with recommendations for leading companies in the sector [22] Group 5: Gold Mining Industry - The company operates in the gold mining sector, with a focus on resource expansion and strategic partnerships, including a long-term gold stream agreement with Zijin Mining [24][25] - The average gold resource grade is 8.26 grams per ton, with a total resource volume of 55 tons, and projected revenues of 1.6 billion HKD in 2024 [24] - The company anticipates a significant increase in net profit over the next three years, with a projected growth rate of 269% in 2025 [26]

Investment Rating - The investment rating for the AIDC power equipment and grid industry is "Outperform the Market" (maintained) [1] Core Viewpoints - The AIDC power equipment sector has seen a general increase in the past two weeks, with the top three performers being Uninterruptible Power Supply (UPS) (+21.0%), High Voltage Direct Current (HVDC) (+20.7%), and Battery Backup Unit (BBU) (+15.9%) [4] - The industry perspective indicates that global giants like Vertiv, Eaton, and Schneider have established strong product lines and solution capabilities in the data center power equipment sector, while domestic companies are gaining competitive advantages in various segments [4] - The year 2025 is anticipated to be a pivotal year for global AIDC construction, with significant capital expenditures expected from major cloud providers [4] - The report suggests focusing on technological innovations in data center power distribution, particularly the adoption of 800V HVDC and solid-state transformers [4] Summary by Sections AIDC Power Equipment - The demand for AIDC power equipment is projected to grow significantly, with an expected annual average growth rate of 20% from 2025 to 2030 [12] - The estimated market space for various AIDC power equipment by 2030 includes: transformers (85 billion), medium and low voltage switchgear (341 billion), UPS (41 billion), HVDC (380 billion), and solid-state transformers (239 billion) [12] - The report highlights the importance of focusing on four key areas: transformer/switchgear, UPS/HVDC, active power filters (APF), and server power supply [4] Grid Industry - The national power engineering investment completion amount for July 2025 was 65.3 billion, a year-on-year decrease of 8.9%, while the cumulative investment from January to July was 428.8 billion, an increase of 3.1% [31] - The national grid engineering investment completion amount for July 2025 was 40.4 billion, a year-on-year decrease of 0.7%, with a cumulative investment of 331.5 billion from January to July, reflecting a 12.5% year-on-year increase [32] - The report indicates that the bidding for ultra-high voltage projects is expected to see a concentrated release in the second half of 2025, with related companies maintaining strong performance certainty and scarcity [4] - The report recommends focusing on three main areas in the grid sector: ultra-high voltage orders and deliveries, virtual power plants, and the international expansion of power equipment [4]

Summary of Conference Call Records Industry Overview - The AI power supply equipment industry is experiencing significant technological changes, particularly in GPU power consumption, which has increased from 200W to 300W and may double in the future. The number of cards in cabinets is also rising, from 172 to potentially 288 cards, leading to increased cabinet power from 198kW to an expected 500kW or even megawatt levels by 2027-2028. This presents challenges for data center space architecture but also opportunities for leading domestic companies [2][6][10]. Key Points and Arguments - **Market Size and Pricing**: The price of power supplies is approximately 2 yuan per watt. A 200kW cabinet corresponds to a market space of about 40 billion yuan, with the overall market potentially reaching 100 billion yuan when including components like supercapacitors and BBO [4][5]. - **HVDC Technology**: As cabinet power exceeds 250kW, the need for higher energy efficiency will drive the adoption of HVDC paths, with penetration expected to rise from 10% to over 20% by 2026. Major overseas clients are choosing Delta and Veichi Technology, while domestic companies like Megmeet, Kehua, and Kstar are also actively positioning themselves [6][10]. - **Supercapacitors**: Supercapacitors are crucial in AI power supply devices, capable of handling millisecond-level fluctuations. For instance, the JD300 chip can experience a 90% fluctuation, equating to a 1.9kW variation for a 1kW load. Supercapacitors provide high-frequency, long-lifetime energy storage solutions, essential for system stability [7][9]. - **Investment Opportunities**: There are multiple investment opportunities in PSU, HVDC, and DC-DC segments. Companies like Megmeet and HVDC-related firms show strong certainty, while new players like Newray may achieve AC-DC conversion. Jianghai Co., Blok New Materials, and Sanhuan Group may also see new opportunities due to technological changes [12]. Additional Important Insights - **Technological Iteration**: The secondary power supply (ACDC) segment is expected to undergo technological iterations due to increased power density. The core components will change as integration levels rise and switching frequencies increase from 30kHz to 500kHz, presenting substantial investment opportunities [3]. - **Market Potential for Jianghai Co.**: Jianghai Co. has secured significant orders from major clients like Meta for supercapacitors, with each module priced around $5,000. The company is expected to capture a significant market share and gradually realize profits as downstream clients ramp up demand [10]. - **Impact of IFAX**: The anticipated increase in IFAX production in 2026 will lead to changes in the DC-DC segment, with a projected market space of 1.7 billion yuan for chip-level components. Companies like Boke, with integrated advantages, are expected to capture a large share of this market [11].

Summary of Conference Call Transcript Industry Overview - The report discusses the evolution of power supply architectures in data centers, focusing on High Voltage Direct Current (HVDC) systems and their adoption by major overseas companies such as Microsoft, Google, and Meta [1][10]. - The increasing demand for AI computing power is driving the need for more efficient power supply solutions in data centers, impacting both energy consumption and operational costs [1][10]. Key Points on Power Supply Architecture Evolution of Power Supply Systems 1. **First Generation**: Utilized Uninterruptible Power Supply (UPS) systems, converting AC from the grid to DC for server use, with a power capacity of 10-15 kW [2]. 2. **Second Generation**: Introduced an open pricing power supply model, integrating power sources directly into the system [2]. 3. **Third Generation**: Features a high-voltage direct current (HVDC) solution that separates power supply from IT cabinets, allowing for better scalability and efficiency [3][4]. Major Companies' Initiatives - **Microsoft**: Launched the Mount Diablo power architecture, separating power and server units, currently using a 50V DC supply [4]. - **Google**: Presented a two-phase power architecture at the OCP conference, with a transition plan to a direct DC supply of ±400V for data centers [5]. - **Meta**: Announced a three-step approach to high-power rack solutions, gradually moving towards HVDC systems [6][7]. - **NVIDIA**: Introduced an 800V power architecture capable of supporting over 600 kW, focusing on future-proofing against increasing power demands [9]. Domestic vs. Overseas Trends - Domestic HVDC systems in China are primarily at 240V, with a focus on compatibility with existing equipment, while overseas systems are moving towards 400V and 800V solutions [17][18]. - Chinese companies like Alibaba and Tencent are still utilizing 240V systems, with some planning for higher voltage systems in the future [19][20]. Supply Chain and Market Dynamics - The supply chain for 400V systems is mature, making it cost-effective, while 800V systems are newer and face higher costs and safety concerns [13][14]. - The transition to HVDC will be gradual, with existing systems needing to adapt to new power supply standards [10][22]. Investment Opportunities - Companies such as Zhongheng, Kehua, and others are positioned to benefit from the increasing penetration of HVDC systems in both domestic and international markets [22]. Additional Insights - The report highlights the importance of solid-state transformers (SST) in future power supply solutions, which can enhance efficiency and reduce size [15][16]. - The compatibility of existing servers with new power supply systems remains a critical factor in the transition to higher voltage solutions [22][23]. This summary encapsulates the key insights from the conference call, focusing on the evolution of power supply systems in data centers, the initiatives of major companies, and the implications for investment in the sector.