2025-08-11 01:21Summary of Conference Call on HVDC Market: Sungrow and Hezhong Electric Industry Overview - The conference call focused on the HVDC (High Voltage Direct Current) market, particularly in relation to data centers and the transition from traditional power supply systems to HVDC solutions [1][3][4]. Key Points and Arguments 1. Shift to HVDC Power Supply: Major tech companies like Meta, Google, and Microsoft are transitioning to 400V/800V HVDC power supply systems to meet the high power demands and cooling challenges of data centers, as traditional copper-based distribution systems are unsustainable [1][3]. 2. NVIDIA's Influence: NVIDIA's Ruban Ultra and Revolt series products, with single cabinet power reaching up to 600kW and even megawatt levels, are driving CSP manufacturers to adopt HVDC power supply systems [1][4]. 3. Implementation Paths for HVDC: There are two main paths for implementing HVDC: the sidecar power supply solution and the SST (Solid State Transformer) solution. The sidecar solution is favored in the short term for its compatibility with existing systems [1][5][6]. 4. Market Potential for Sungrow and Hezhong Electric: Both companies have technological advantages in large-scale energy storage and wind power generation, positioning them well to capture market share in HVDC equipment development [1][8]. 5. Projected Market Growth: The overseas HVDC market is expected to reach $40-50 billion by 2028. If Sungrow captures a 30% market share, it could contribute $3-6 billion in profits, indicating significant growth potential [2][10]. 6. Challenges with Traditional Power Supply: The traditional 48V power supply architecture is becoming inefficient as it requires excessive copper to manage high currents, leading to unsustainable costs and heat losses [3]. 7. Domestic Suppliers' Opportunities: The transition from 48V to 800V or ±400V HVDC presents opportunities for domestic suppliers to enter the North American market, especially those familiar with HVDC technology [9][13]. 8. Sungrow's Strategic Positioning: Sungrow has made strategic deployments in AIDC (Advanced Intelligent Data Center) and is expected to leverage its inverter and energy storage technology for HVDC applications [10][11]. 9. Hezhong Electric's Competitive Edge: Hezhong Electric, while smaller, has strong ties with major North American data center players and is positioned to quickly integrate into the supply chain [12][15]. 10. Future Market Valuation: The HVC (High Voltage Current) industry is projected to grow rapidly, with Hezhong Electric's market valuation potentially reaching $30 billion within six months, based on a 50x PE ratio [14]. Additional Important Insights - Technological Advancements: The introduction of new products by Delta at the OCP summit, including HVDC systems with 800kW cabinet power, indicates a competitive landscape where Hezhong Electric is well-positioned [15]. - Meta's Prometheus Project: Hezhong Electric's involvement in Meta's Prometheus project, expected to launch in 2026, could significantly boost its profits depending on the market share it captures [13]. This summary encapsulates the critical insights from the conference call regarding the HVDC market, highlighting the strategic positioning of Sungrow and Hezhong Electric amidst industry shifts and technological advancements.