A[Welgo: Net profit in the third quarter increased by 462% year-on-year. Orders for AI server power supply AC-DC products grew rapidly] On October 16, Welgo (301251.SZ) announced that its operating income in the third quarter was 877 million yuan, a year-on-year increase of 115.24%; net profit was 138 million yuan, a year-on-year increase of 461.86%. Operating income in the first three quarters was 1.856 billion yuan, a year-on-year increase of 65.41%; net profit was 182 million yuan, a year-on-year increase of 161.43%. Since 2026, the demand for AI server power supplies has exploded. The company's thick copper plate flagship products have continued to iterate. Ultra-thick copper, high multi-layer, and HDI technology and process capabilities have been further improved. Overseas production capacity layout has gradually taken shape. The company's AI server power supply AC-DC product orders have grown rapidly, with a significant increase compared with the same period last year. In terms of DC-DC high-end products, it has obtained supply qualifications from key large customers, and is simultaneously promoting certification and introduction for multiple customers. The talent system has been improved and small batch delivery has been achieved. During the reporting period, AI server power products accounted for approximately 63% of the main business revenue. Xiaocai Note: The company’s Q3 net profit was 138 million, and Q2 net profit was 37 million. Based on this calculation, Q3 net profit increased by 268% month-on-month. A[Understand Northbound Funds in One Picture: The total market value of positions shrank by 550 billion yuan in the third quarter The value of stock holdings in the banking and pharmaceutical sectors has increased significantly] October 15th, as of the end of the third quarter of 2026, the total market value of northbound capital positions was close to 2.58 trillion yuan, a decrease of nearly 550 billion yuan from the end of the second quarter, and basically falling back to the level at the end of the first quarter; the number of individual stocks held reached 3,531, a slight increase of 21 from the previous period, and the overall number of targets changed little. From an industry perspective, the new value of northward holdings in the banking, pharmaceutical and biotech, non-bank finance, and transportation sectors all exceeded 10 billion yuan, while the electronics and power equipment sectors both decreased by more than 200 billion yuan, and the communications, mechanical equipment and other sectors also experienced significant declines. It is worth noting that the list of industries with heavy holdings of northbound funds has also undergone significant changes. The banking sector’s shareholding value ranking jumped from sixth place in the second quarter to the current third place, while the communications sector fell from third place in the second quarter to seventh place. In terms of individual stocks, excluding factors affecting stock prices, Zijin Mining, China Merchants Bank, WuXi AppTec, Ping An, Midea Group, Ping An Bank, Industrial and Commercial Bank of China, etc. were among the top net buyers of northbound funds, while CATL, E-Sheng, Northern Huachuang, Zhongji InnoLight, Sungrow Power, and Weichai Power received net sales of more than 10 billion. Among them, although CATL's Northbound shareholding dropped by 10% in the third quarter, and the value of its shareholdings also decreased by nearly 118.3 billion yuan, it is still the largest holding in Northbound, with a shareholding value of nearly 233 billion yuan, which is about three times that of the second-placed Midea Group (76.6 billion yuan). B[Three departments: Carry out ship financing leasing, standardized box power supply leasing and other businesses] On October 13, the Ministry of Transport, the Ministry of Industry and Information Technology, and the National Energy Administration issued the "Action Plan for the Promotion and Application of Inland River New Energy Ships (2026-2030)" to encourage innovative business models. Support cargo owners, equipment, energy, ports and shipping companies to leverage their advantages and explore new models for integrated development of the entire chain. Give full play to the advantages of the battery industry, support the development of new business models for battery replacement such as ship power separation and battery banks, and carry out business such as ship financing leasing and standardized box power supply leasing. Encourage energy, port and shipping companies to establish long-term stable price mechanisms linked to traditional energy sources. B[Inverter concept moved up, Shougang New Energy's 20cm daily limit] On October 12th, the inverter concept moved up in the afternoon, Shougang New Energy's 20cm daily limit, Shangneng Electric rose more than 10%, Deye Shares, Hitech New Energy, GoodWe, Chint Power, and Sungrow Power followed suit. In terms of news, the second regular meeting of the China-EU Trade and Investment Consultation Mechanism was held recently. The European side clarified that the EU's financing guidance document for inverter projects is not targeted at specific countries, and the two sides will further negotiate on this issue. B[Multiple departments plan to standardize products that use virtual control parts to replace traditional physical buttons in automobiles] On October 10, four departments including the Ministry of Industry and Information Technology jointly issued a notice (Draft for Comments) on further strengthening the management of innovative design and R&D testing and verification of automotive products. The Draft for Comments proposes that products that use virtual control parts (touch buttons, pressure-sensitive buttons, etc.) to replace traditional physical buttons should, in addition to meeting the "Technical Conditions for Motor Vehicle Operation Safety" (GB 7258), "Marking of Automobile Control Parts, Indicators and Signaling Devices" (GB 4094) and other requirements, evaluation and verification of touch reliability, accidental touch prevention performance, feedback clarity, etc. should also be completed. If virtual controls are used for functions involving key driving safety (lights, wipers, defrost and defogging, etc.), their operational convenience, reliability and safety in various driving scenarios should be evaluated, and they should also have physical controls. Emergency control parts related to safety, such as automobile emergency escape devices, emergency braking devices, and drive system power cutoff devices, should have physical control parts and eye-catching labels to facilitate emergency operations. A[19 "Xinwen Lianbo" important news items for Saturday, October 3rd] October 3rd, the main contents of today's "Xinwen Lianbo" are:
1. [New ideas lead a new journey] Ecology for the people paints a new picture of a beautiful China;
2. [On the Field of Hope] China’s autumn grain harvest is ushering in a large-scale harvest, with progress exceeding 30%;
3. Celebrate colorful holidays and praise a good life;
4. Take multiple measures to activate consumption vitality during the National Day holiday;
5. The box office of National Day movies in 2026 will exceed 500 million yuan, and "Movie+" will stimulate new increases in consumption;
6. Holiday travel routes are heating up, and the transportation department has increased transportation capacity to ensure passenger travel;
7. [The 20th Asian Games] The Chinese team achieved the highest number of gold medals in overseas participation in the Asian Games;
8. Since the beginning of this year, China’s new round of prospecting breakthroughs has achieved remarkable results;
9. Trains with the word "Jing" are online, and senior citizens can enjoy "higher discounts" when purchasing tickets;
10. "Ningxiang DC" supporting peak-shaving power supply was put into production;
11. The shield excavation of the second submarine tunnel in Jiaozhou Bay, Qingdao, Shandong has been completed;
12. China’s first 100-megawatt compressed carbon dioxide energy storage project is connected to the grid;
13. Chinese embassies and missions abroad held activities to celebrate the 77th anniversary of the founding of New China;
14. Saudi Arabia launched multiple air strikes on areas controlled by the Houthi armed forces in Yemen;
15. The Afghan prosecutor said that the co-pilot of the passenger plane involved attempted a "terrorist attack";
16. The G7 agreed to release strategic oil reserves to ease pressure;
17. The inflation rate in the Eurozone rose to the highest level in three years in September;
18. The death toll from the Ebola epidemic in the Democratic Republic of the Congo exceeds 4,000;
19. China Splendid. B[CSSC Power releases China's first independently developed "Nuclear Diesel No. 1" 6MW nuclear power unit] On September 22, reporters learned from China Shipbuilding Power Group that it today released China's first independently developed "Nuclear Diesel No. 1" 6MW nuclear power emergency diesel generator set. At the same time, CSSC Power Group The CSSC Hudong Heavy Machinery Nuclear Power Service Center was also officially inaugurated, marking that China has fully mastered the core technology of independent design, research and development and manufacturing of this level of units, and has made up for the shortcomings in independent nuclear power high-power emergency power supply equipment, which will significantly enhance China's nuclear power plant accident emergency response and safe operation and maintenance capabilities. In terms of performance parameters of this unit, the diesel engine has a 100% operating power of 7,000 kilowatts and the unit has a 100% power of 6,600 kilowatts. The unit startup time is less than 10 seconds, the average trouble-free working time is more than 2,000 hours, and the average diesel engine repair time is less than 4 hours. (Reporter Hu Haoqiong) B[JPMorgan Chase: Maintaining a positive view on energy storage demand before 2030, optimistic about CATL, etc.] On September 21, JPMorgan Chase issued a research report saying that China's energy storage value chain stocks in the A-share market have adjusted significantly since June this year, with CATL, HyperXtron, Deye Technology, Sungrow, etc. falling far beyond the performance of the market, reflecting investors' concerns about the weak outlook for China's energy storage demand next year and rising geopolitical uncertainty. The bank believes that the market is overly pessimistic and maintains a positive view on energy storage demand before 2030. It predicts that China's energy storage installed capacity will have an average annual compound growth rate of approximately 22% until 2030. Battery shipments are expected to increase by approximately 20% year-on-year in 2027, which is almost zero growth compared to market expectations. Among all stocks, the bank continues to list CATL, Sungrow and Deye as its top choices, and views CATL as the best choice to capture the growth of global energy storage because of its leading market share, strong overseas exposure and attractive recently adjusted valuation, with a target price of HK$725. B[Demand for mature processes explodes Wafer foundries such as UMC and Power Semiconductor are planning to increase prices] "Science and Technology Innovation Board Daily" reported on the 21st that AI has promoted a strong market for advanced semiconductor processes, and the demand for mature process chips such as peripheral power management ICs, microcontrollers, sensors and MOSFETs has simultaneously exploded. Coupled with the order spillover effect after TSMC gradually reduced some mature processes, the capacity utilization rate of wafer foundries such as UMC, Power Semiconductor Manufacturing Co., Ltd., and World Advanced Micro Devices has reached high levels, and supply exceeds demand. UMC has announced that it will launch price increases, and Power Semiconductor's quoted price will increase by 40%. UMC and Power Semiconductor both confirmed that the recent order reception situation has been improving. UMC bluntly stated that if the market supply and demand trend continues, the adjustment of wafer foundry prices next year will be more obvious than in the second half of this year. (Taiwan Economic Daily) B[CITIC Securities: Huawei Connect Conference releases new AIDC energy infrastructure products Energy storage and liquid cooling accelerated upgrades] On September 19th, CITIC Securities research reported that Huawei held a fully connected conference from September 17th to 18th, and held an AIDC infrastructure summit on the afternoon of the 17th to further launch a new generation of energy and thermal management products around the source, grid, and load storage AIDC, including Taishan UPS, Hengshan centralized DC UPS, the highest density power module 5.0, smart lithium battery 5.0, and AI smart liquid cooling systems. Huawei proposes a "3+1" reconstruction of Watt, Heat, Bit, and construction models for AIDC, and uses MIMO architecture to achieve multi-power input, multi-standard output, and multi-level energy storage collaboration. We believe that as AIDC develops to hundreds of MW and GW levels and the power of single cabinets continues to increase, the power supply and cooling system of traditional data centers is accelerating the reconstruction. Energy storage will be upgraded from traditional power backup to load smoothing, grid-friendly and energy regulation. Liquid cooling will also be upgraded from a single refrigeration equipment to an intelligent thermal management system. Energy storage and liquid cooling are expected to become important incremental links in AIDC infrastructure. B[Fuda Co., Ltd.: Plans to invest 880 million yuan in the construction of a large-scale marine electric crankshaft and precision forging project] On September 17th, Fuda Co., Ltd. announced that the company’s board of directors reviewed and approved a proposal for the company and its wholly-owned subsidiaries to invest in the construction of a large-scale marine electric crankshaft digital intelligent production line project and a large-scale marine electric crankshaft precision forging project. The total investment of the project is 880 million yuan. It is planned to build a large-scale marine electric crankshaft digital intelligent production line, forming an annual production capacity of 15,000 large-scale marine electric crankshafts covering the range of 2m-4.5m. It is planned to build a production line that can produce large-scale marine electric crankshaft forgings with a length of 2m-4.5m, forming an annual production capacity of 20,000 large-scale marine electric crankshaft precision forgings. The implementation of the above two projects will help enhance the company's market competitiveness in the field of large crankshafts.
The announcement shows that the company has established a large-scale marine electric crankshaft division in June 2026, aiming to promote the company to achieve professional operations in the application fields of diesel and natural gas generators such as ship power, backup and emergency power, distributed energy, and large industrial power. The company already has high-quality main engine customers such as Yuchai and Cummins. B[State Grid: Strengthen condition monitoring and operation maintenance of substations and lines around key enterprises with new productivity, such as chip manufacturing, precision processing, biomedicine, etc.] September 16th, according to State Grid news, State Grid announced several measures to create a modern electricity business environment to empower high-quality economic and social development. It is mentioned that we will fully serve the new quality, productivity and high reliability of electricity. Strengthen the condition monitoring and operation maintenance of substations and lines around key new productivity enterprises such as chip manufacturing, precision processing, and biomedicine, optimize the power grid structure and customer access plans, and guide customers to rationally configure uninterruptible power supplies and other devices to improve safe and stable operations. B[Welgo: Current production and operation activities are normal and there are no major changes in the main business] On September 16th, Welgo (301251.SZ) issued a change announcement. The company is concerned that the market has recently paid high attention to relevant links in the artificial intelligence computing power industry chain and the printed circuit board (PCB) industry, and the secondary market transactions in related sectors are relatively active. The company's main business is the R&D, production and sales of printed circuit boards (PCBs). The company's main products include high multi-layer, thick copper (used in motors, electronic controls, and power supply fields), HDI boards, etc., which are mainly used in industrial control, AI server power supply, digital communications, commercial displays, intelligent control, automotive electronics, new energy and other fields. After verification, the company's current production and operation activities are normal, there have been no major changes in its main business, and there have been no major changes in the company's industry policies and internal and external operating environments.
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