2025-07-16 06:13Summary of Conference Call Notes Industry Overview - The focus is on the ultra-high voltage (UHV) projects in the domestic power equipment sector, with a notable slowdown in project approvals until late June when two UHV projects were approved in quick succession. [1] - The expectation is for a significant acceleration in project approvals in the second half of the year, presenting a potential investment opportunity in related power equipment stocks. [1] Key Insights and Arguments - The total market size for domestic power grid equipment companies is estimated at approximately 1.8 trillion yuan, with a year-on-year growth rate of about 13%. [3] - The investment from the State Grid and Southern Grid is projected to be around 800 billion yuan, with UHV investments expected to range between 100 billion to 140 billion yuan annually. [3][4] - The UHV sector is highlighted as having high attention compared to other investment demands, with a simplified research framework focusing on three keywords: ideal, reality, and deviation. [4][5] - The UHV investment for 2023 is expected to exceed 500 billion yuan, with significant project approvals anticipated in the latter part of the year. [6][9] Future Projections - For 2025, the UHV investment is projected to surpass 1.5 trillion yuan, indicating a growth trajectory from the 1.2 trillion yuan level in 2023. [9][10] - The contribution of major companies like Pinggao, Xudong, and NARI to profits is expected to increase, with profit contributions from UHV projects projected to rise by about 10% from 2023 to 2027. [11] Risks and Considerations - Several risks were identified, including regional challenges due to the length and complexity of the projects, environmental assessments, limited manpower from the State Grid, and potential changes in financing schemes. [13][14][15] - The approval and construction timelines are critical, with expectations that projects approved by October could lead to significant bidding for equipment by the end of the year. [9][11] Additional Important Points - The conference emphasized the importance of monitoring the approval pace and the subsequent impact on equipment orders and profit contributions for companies involved in UHV projects. [2][12] - The overall sentiment is optimistic regarding the UHV sector, with recommendations for investment in companies that are currently undervalued. [15]