Zhongjin: Intensive release of SST products, further advancing the industrialization timeframe.

Zhongjin released a research report stating that recently, the various characteristics of solid state transformer products are promising, and companies with strong understanding of the power grid and strong market channel capabilities are expected to stand out. The solid state transformer (SST) industry is transitioning from technical validation to accelerated deployment, further advancing industrialization. It is also indicated that data centers are expected to see small-scale pilot projects and demonstration projects next year, laying the foundation for future large-scale application of SST solutions for the next generation of AIDC. The company is optimistic about the accelerated pace of SST industrialization and recommends keeping an eye on the progress of relevant companies. Key points from Zhongjin: Products have their own characteristics, and companies with strong understanding of the power grid and strong market channel capabilities are expected to stand out The company reviewed recent product launches: Delta's containerized SST DC mobile smart computing center integrates CPU, AI accelerator cards, and server hardware, creating a comprehensive solution from the power grid to the chip with the "plug-and-play" feature. Beijing Sifang Automation launched the 2.4MW first model with 10kV input and 800V output, highly integrated design, with the 1.0 product already in mass production and future iterations such as 35kV and 13.8kV versions based on industry demand. The company is optimistic about the company's rich experience in SST operations in the areas of DC distribution networks, microgrids, deep cultivation in the fields of power quality, unit control, grid-type energy storage, and years of experience, at the same time, the company is laying out related businesses in green direct connection, with SST as the core regulatory unit of source-demand coordination, it is expected to empower the comprehensive solution to land. Eaglerise Electric & Electronic released the SST Juno series of new products; while planning to invest more resources to open up the Panama power market; the company's data center transformer entered markets such as the United States and Japan last year. The company has accumulated years of experience in high-frequency transformer technology, and the company is optimistic about its diversified product layout and overseas service response capacity in the AIDC field. Multiple scenarios promote, industrialization rhythm route gradually clear Currently, SST has mature demonstration projects in scenarios such as charging, new energy, microgrids, and rail transit. The company believes that data centers have high requirements for stability and reliability. Currently, there is a lack of complete SST application project cases, and data testing and verification still require time; this year may be a key year for companies to accelerate the research and development of prototype iterations, collaborate with customers to develop customized versions, and test, and subsequently, with the widespread application of overseas 800VDC architecture, it is expected that next year will see small-scale pilot projects and demonstration projects, laying the foundation for future large-scale application of SST solutions for the next generation of AIDC. Valuation and recommendations The company is optimistic about the accelerated pace of SST industrialization and recommends keeping an eye on the progress of relevant companies: Beijing Sifang Automation, Eaglerise Electric & Electronic, Hainan Jinpan Smart Technology, Guangdong Mingyang Electric, China XD Electric, etc. Risks AIDC capital expenditure falls short of expectations, changes in technology routes, and intensified market competition.