According to Zhitong Finance APP, Soochow Securities released a research report stating that for SST complete machines, it highlights and recommends Sungrow Power Supply Co., Ltd. (300274.SZ), Sifang Auto Co., Ltd. (601126.SH), Jinpan Technology Co., Ltd. (688676.SH), China XD Electric Co., Ltd. (601179.SH), and Eaglerise Electric & Electronic (China) Co., Ltd. (002922.SZ), and suggests paying attention to Tgood Electric Co., Ltd. (300001.SZ) and Xinfengguang; high-frequency isolation transformers have become core components of SST, and it suggests paying attention to Kelike, Jingquanhua, and Xinte Electric; capacitors account for a relatively large value in SST and are expected to further open up market space, and it suggests paying attention to Fala Electronics and Jianghai Co., Ltd. The main viewpoints of Soochow Securities are as follows: Decades of technological and project accumulation, AI drives SST to usher in a period of large-scale application. Solid-state transformers (SST) are a new generation of power electronic power supply systems based on power semiconductors and high-frequency magnetic components with high power density and high efficiency. Since GE proposed it in 1970, after decades of accumulation plus AI's pull for high-power-density DC power distribution demand, the SST industry is expected to usher in a commercialization inflection point, superimposed on the rapid development of electric vehicles and renewable energy power generation technologies, and SST is expected to usher in its golden period of development. Core components still need iteration, and the technical barrier for complete machines is relatively high. SST is mainly composed of hardware and control systems. In the hardware part, the relatively high value proportions are mainly high-frequency power devices, high-frequency isolation transformers, capacitors, etc., with BOM proportions of about 15%/25%/12% respectively. Among core hardware, SiC MOS best fits SST requirements and is currently developing toward 3.3kV and even 10kV high withstand voltage. The bank believes that overseas companies still have greater advantages in this segment; high-frequency isolation transformers are currently the bottleneck in SST hardware technology, determining SST reliability and operating life. At present, high-frequency isolation transformers still have room for improvement in magnetic core processes, insulation, heat dissipation, etc. Domestic industrial chain projects have rich experience plus talent dividends and are expected to become internationally competitive products; aluminum electrolytic capacitors are currently the main capacitors in SST, and as single-module power and frequency increase, the penetration rate of film capacitors is expected to rise and become the mainstream solution for the front-stage DC-link. System integration design and control systems will be the core competitiveness of mainframe manufacturers, determining the reliability, economy, and performance of future SST large-scale applications, and also the key to victory in competition among leading companies, requiring close attention. Domestic manufacturers are flourishing and are expected to quickly seize the hundred-billion blue ocean market. The SST industry has entered a stage of rapid development, and the pace of domestic industrialization is relatively leading. Overseas, Delta and Eaton are relatively leading, while other manufacturers are mostly startups, which may have supply chain and customer advantages but lack engineering application experience; domestic manufacturers benefit from advanced project cultivation on the grid side. Sifang (601126.SH), XD (601179.SH), Weiguang, etc. have more project engineering experience. Sungrow (300274.SZ), relying on power electronics R&D and talent advantages, has launched prototypes and obtained orders. Domestic players are flourishing and are expected to rapidly scale in AIDC, super charging, renewable energy, power grids, and other fields. The bank estimates that by 2030 the global SST market is expected to exceed 270 billion yuan, and future leading companies have large growth space. Looking at SST's future from the development of inverters: from special equipment to multi-scenario large-scale volume growth. Reviewing the industrial development process of inverters, the bank believes that the development of the SST industry has similarities but also differences: at the pattern level, the bank believes that drawing on the development laws of the entire power electronics industry, its future market pattern is expected to move from fragmentation to a high degree of concentration, among which the Matthew effect of leading companies is especially significant. However, because SST has extremely high requirements for R&D, customer channels, and quality control, the bank believes that the risk of deteriorating industry competition is relatively low. In terms of rhythm, the bank judges that it is currently in a demonstration and exploration period, is expected to usher in an engineering promotion period from 2027 to 2029, and officially enter a large-scale volume growth stage after 2029. [Investment Recommendations] For SST complete machines, it highlights and recommends Sungrow Power Supply Co., Ltd. (300274.SZ), Sifang Auto Co., Ltd. (601126.SH), Jinpan Technology Co., Ltd. (688676.SH), China XD Electric Co., Ltd. (601179.SH), and Eaglerise Electric & Electronic (China) Co., Ltd. (002922.SZ), and suggests paying attention to Tgood Electric Co., Ltd. (300001.SZ) and Xinfengguang; high-frequency isolation transformers have become core components of SST, and it suggests paying attention to Kelike, Jingquanhua, and Xinte Electric; capacitors account for a relatively large value in SST and are expected to further open up market space, and it suggests paying attention to Fala Electronics and Jianghai Co., Ltd. [Risk Warnings] End-customer bidding falls short of expectations, AIDC construction progress falls short of expectations, tariff policies fall short of expectations, intensified competition, etc.
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