Hong Kong Stock Concept Tracking | Ultra-high Voltage Industry Supports the Continued Improvement of Soft and Rigid Demand. Leading Enterprises in Core Components are Attracting Attention (with Concept Stock).

In the past few years, with the background of new energy installation far exceeding the construction of the power grid, UHV (Ultra High Voltage) plays an important role as a key channel to support the integration of energy bases in central and western China and the mutual assistance among provinces, with clear construction demand. The Gansu to Zhejiang Project is a key project in the national "14th Five-Year Plan" for power development, with a rated voltage of 800 kV and a rated capacity of 8 million kW, with a total investment of about 35.3 billion RMB; the project will gather 11.2 million kW of new energy power sources, and after operation, it can transmit over 36 billion kWh to Zhejiang annually. At the sending end, the 750 kV AC system collects Gansu's photovoltaic, wind, and energy-saving thermal power, while at the receiving end, it connects to Zhejiang's load center via a 500 kV AC system. The Gansu to Zhejiang Project started construction in July 2024, and is expected to be completed and put into operation in 2026. According to a research report released by CITIC Securities, UHV is facing the core demands of supporting the integration of new energy sources in central and western China, with urgent and sustained industry needs. SUN.KING TECH announced a procurement agreement, once again clarifying the core equipment requirements for flexible HVDC valves. Currently, the flexible HVDC project has abundant reserves, and combined with offshore wind and overseas demands, related equipment and components are expected to gradually enter the period of performance realization. It is recommended to focus on UHV projects bringing UHV and supporting power transmission and transformation needs, as well as the technological advancements brought by CKH HOLDINGS' flexible HVDC: 1) Industrial chain enterprises benefiting from the construction of UHV DC channels and the technological progress of flexible DC; 2) Industrial chain enterprises benefiting comprehensively from the construction of UHV and supporting power transmission and transformation needs. Relevant UHV equipment companies include: SUN.KING TECH (00580): announced on September 14, 2024, that one of its subsidiaries, as a supplier, signed a six-party agreement with five parties (referred to as "demand parties"), including Changzhou Borui Electric Power Automation Equipment Co., Ltd., Nanjing Nari Semiconductor Co., Ltd., Xj Electric Co., Ltd., Xidian Electric Power System Co., Ltd., and Rongxinhuik Electric Co., Ltd., to purchase a total of 624 million RMB worth of power electronic devices for the Gansu-Zhejiang 800 kV UHV DC transmission project (Gansu to Zhejiang Project).