China Utilities & Renewables Blog: China solar shr px jump; 1H26 ESS development trend largely positive; new nuclear projects approval

Research evidence excerpt

China Utilities & Renewables Blog: China solar shr px jump; 1H26 ESS development trend largely positive; new nuclear projects approval

g nuclear buildout tied to China’s carbon-neutrality goals

benefiting nuclear power operators via capacity growth, and reiterate an OW rating

on CGN Power on secular expansion and improving tariffs supporting earnings.

Investors have raised concerns about whether our coverage (especially low-

voltage electrical equipment) could be vulnerable if data centers begin moving

from traditional AC systems toward a 800V DC architecture. We hosted a call

series with companies offering products tied to the 800V applications to respond

to these questions. Our view is that 800V DC represents an “edge”

configuration for data centers rather than a wholesale substitute for the existing

AC backbone. It may also open up incremental growth avenues for firms

developing next-generation solutions such as solid-state transformers, and our

discussions indicate several Chinese vendors have already provided prototypes to

U.S. cloud service providers, with commercialization likely in late 2027 or 2028.

Korean power companies are also in R&D for certain types of electrical equipment

products suited for the new power architectures.

Table 1: Top stock ideas

Company Ticker Rating Currentprice PT(LC) (Downside)Upside/ Investment thesis/ Key Catalysts

Top Long

Deye 605117 CH OW 80.9 154.0 90% (1) Riding the strong DG ESS growth in EM; (2) Beneficiary of disruption and tailwinds from energy resilience; (3) First mover in EM + cost leadership

Flat Glass 6865 HK OW 7.73 8.80 14% Current valuation is attractive and we see turnaround potential into 2027/28