China AIDC and Power Corporate Day Takeaways

Goldman Sachs hosts a corporate day highlighting the gradual shift to 800V/SST technologies in data centers and a clear margin divergence between domestic China and overseas markets.

Key Takeaways

• 1.The transition to 800V DC architectures and Solid State Transformers (SST) in data centers is underway but will be gradual, with large-scale commercialization expected in 2027 and beyond.
• 2.Overseas markets, particularly North America, offer premium margins due to capacity shortages and a 'cost-plus' pricing model, contrasting with highly competitive domestic China markets.
• 3.Prefabricated and modular power solutions are gaining significant traction among project owners to shorten construction cycles and lower installation costs in overseas markets.

Table of Contents

• #1. UPS demand intact with a gradual transition towards 800 VDC/SST
• #2. Evolving landscape in the 800 VDC/SST space
• #3 Prefabrication products gaining traction
• #4 Margins bifurcation between domestic and overseas markets
• Stock Ideas
• Kstar (002518.SZ, Buy)
• Kehua (002335.SZ, Neutral)
• Honor Electronic (300870.SZ, NC)
• Sifang (601126.SS, NC)
• Jinpan (688676.SS, NC)
• Sinexcel (300693.SZ, NC)
• Investment thesis, valuation methodology, and risks

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