2026-01-15 06:33Summary of Key Points from the Conference Call Transcript Industry Overview - Industry: China Data Center Equipment - Key Focus: Power and cooling upgrades, particularly related to NVIDIA's Vera Rubin platform launch in 2026 [2][3] Core Insights and Arguments - NVIDIA's Rubin Platform: - The Rubin platform is set to double the rack power compared to the previous Blackwell platform, moving from 80% to 100% liquid cooling [2] - Rubin is currently in full production [2] - VR200 NVL72 Specifications: - Delivers approximately 3.5x to 5x the training/inference AI computing power compared to GB300 NVL72, significantly increasing rack-level power demand [3] - Upgrades power shelves to a 33U 110 kW configuration, compared to the GB300's 81U 33 kW shelves [3] - Introduces a 3+1 redundancy design for power shelves [3] - Future Developments: - Anticipation of transitioning to the next-generation Kyber rack design, which will support 800V HVDC to meet rising power requirements driven by AI compute scaling [3] - Potential launch of Rubin Ultra in 2027 could further unleash HVDC demand [3] Investment Opportunities - Stock Picks: - Kstar and Kehua: Expected to benefit from stronger UPS demand and potential upgrades to HVDC and SST [4] - Kstar is anticipated to have strong order intake from US hyperscalers due to strategic partnerships [4] - Kehua's domestic GPU ramp-up and H200 shipment could enhance order intake from domestic hyperscalers [4] Risks and Valuation - Downside Risks for Data Center Equipment Sector: - Slower-than-expected AI data center capacity growth [6] - Slower penetration of high-power density products [6] - Challenges in gaining market share in the overseas AIDC equipment supply chain [6] - Kehua's Price Target and Risks: - Price target based on DCF methodology; downside risks include slower IDC capacity expansion and lower overseas shipment expectations [7] - Upside risks include faster IDC capacity expansion and stronger relationships with hyperscalers [7] - Kstar's Price Target and Risks: - Similar DCF methodology for price target; downside risks include slower IDC capacity expansion and new entrants in the market [8] - Upside risks include faster IDC capacity expansion and higher overseas shipments [8] Additional Important Information - Analyst Team: The report was prepared by UBS Securities Asia Limited, with analysts Yishu Yan, Anna Yuan, and Ken Liu involved [5] - Valuation Methodology: The report emphasizes the use of DCF methodology for price targets and highlights the importance of understanding risks before making investment decisions [7][8] This summary encapsulates the critical insights and data from the conference call, focusing on the developments in the China data center equipment industry, particularly regarding NVIDIA's advancements and the implications for investment opportunities in Kstar and Kehua.