Huafu Securities: Huawei proposes SST strategy for the first time, solid-state transformers usher in industry turning point from 0 to 1.

Huafu Securities released a research report stating that Huawei has officially released its Source Network Holland Storage AIDC strategy, clearly proposing the "3+1" comprehensive restructuring concept, specifically covering four core upgrade dimensions. It also proposed that in the future, it will gradually evolve towards energy routers with SST technology as the core. The current point is the starting point for SST from 0 to 1, and it is expected to achieve product verification and sampling by 2026, which will bring the greatest elasticity in valuation reshaping. It is recommended to pay attention to leading power equipment with advantages in overall card positioning and core incremental links such as high-frequency transformers/magnetic core materials/circuit breakers/power semiconductors. Huafu Securities' main points of view are as follows: Huawei's entry into SST has dual strategic significance, establishing its ultimate position in the AIDC power supply architecture from both a technological dimension and opening up the imagination space for full scenario penetration from a market dimension. On the technical level, from the perspective of an industry leader, SST's high reliability, high power density, high conversion efficiency, and green core values are certified. From the market perspective, with Huawei's global sales network covering more than 170 countries and a strong brand endorsement in the digital energy field, it will significantly accelerate the cross-border penetration of SST from data centers to scenarios such as self-supply of green electricity, supercharging of electric vehicles, new energy grid connection, and flexible distribution networks, pushing SST from AI computing power hardware upgrades to a universal infrastructure for new power systems. The four-stage evolution of the power supply architecture, SST is the ultimate solution As the power of AI cluster single cabinet jumps, the industry's technology roadmap is evolving along UPS UPS+SideCar 800VHVDC 800VSST four stages. SST replaces traditional iron core copper wires with power electronic devices, integrates AC/DC rectification and DC/DC conversion highly, directly converts medium-voltage AC into 800V DC, reducing volume by 60~90% compared to traditional solutions, and has the ability to achieve bidirectional power flow, reactive power compensation, and millisecond-level response to eliminate voltage drops, improving power supply stability. SST in the power system is like CPO in optical communication CPO integrates the optical engine and exchange chip together, shortening the optical link to form a highly integrated multilevel architecture; SST is also a highly integrated power electronic product. On the other hand, CPO compresses the optical link, SST compresses the electric link, both achieving the goal of reducing power consumption/loss. There is a time lag in the market's understanding of SST, considering it too long-term, but industrial progress has accelerated significantly Several companies have already released data center SST products this year, including Delta, Beijing Sifang Automation, Eaglerise Electric & Electronic, and Huawei's strategic orientation. The current period is the reserve period and accumulation period for SST, and later we may see the small-scale introduction and even the stage of large-scale implementation of SST. Risk warning: Data center construction speed is below expectations, industrialization is below expectations, policy risks, etc.