Shanghai Liangxin Electrical (SZ:002706)2025-09-07 16:19Summary of Conference Call Records Industry Overview - The global low-voltage electrical market is steadily recovering, with a market size of approximately 400 billion RMB in 2023, and a projected compound annual growth rate (CAGR) of about 6% over the next five years, driven by the demand for renewable energy generation and data center construction [1][3][4] - The low-voltage electrical market is dominated by international giants such as Schneider, ABB, and Siemens, while the domestic market is relatively fragmented, with companies like Chint and Liangxin making progress in technology accumulation and overseas business expansion [1][5] Key Insights and Arguments - Data center circuit breakers are crucial for power distribution systems, ensuring uninterrupted power supply. The trend towards intelligent integration in data center power distribution systems and the shift from AC to DC for backup UPS will further enhance the value of individual products [1][6][7] - The global market for low-voltage electronic products in data centers is expected to exceed 30 billion RMB by 2026-2027, with the penetration rate of DC low-voltage electronic products increasing from about 10% in 2025 to over 30% by 2027, driving up the overall product value [1][8] - Liangxin Electric has a comprehensive product line covering medium and low voltage distribution and control, with customized development for various industries such as wind power generation, photovoltaic charging, electric vehicle charging stations, 5G base stations, and data centers [1][9] Future Trends - The future development direction of data center power distribution systems includes modularization and intelligence, which can significantly reduce construction time and improve efficiency and reliability [2] - The global installed capacity of renewable energy generation is expected to reach 4.6 billion kilowatts by 2024, further pushing the transformation of low-voltage electrical products towards intelligence and digitalization [4] Competitive Landscape - The competitive landscape of the circuit breaker industry shows that while international brands hold a significant market share, domestic brands like Chint and Liangxin are gradually increasing their market presence due to improved technology and cost-effectiveness [5][12] - In 2023, the market share of domestic C23 enterprises is approximately 40%, and C25 enterprises around 50%, with Schneider holding about 15% and Liangxin around 5% [5] Product Innovations - Liangxin has launched a solid-state DC circuit breaker, which offers advantages such as short response time, no arc limitation, and long service life, expected to become the standard for 800V HVDC data centers [11] - The new solid-state circuit breaker is anticipated to be launched in the second half of 2026, significantly enhancing Liangxin's competitiveness in the market [11] Additional Insights - The penetration of DC low-voltage electronic products is expected to rise rapidly, with domestic market values for AC low-voltage products around 3 RMB per watt and DC products approximately 6 RMB per watt, indicating a higher value for DC products in overseas markets [8] - Liangxin's strategic partnerships with leading clients like Huawei and Weidi for customized components are aimed at expanding its market share in the context of increasing demand for DC and high-voltage products [10][12]