In the past few years, with the background of new energy installation far exceeding the construction of the grid, ultra high pressure has clear construction needs as an important channel to support the integration of the energy base in the central and western regions and the mutual assistance between provinces.

The Gansu-Zhejiang Power Transmission Project is a key project in the national "14th Five-Year Plan" for power development, with a rated voltage of ±800kV and a rated capacity of 8 million kW, with a total investment of approximately 35.3 billion yuan. The project collects 11.2 million kW of new energy power sources, and can transmit over 36 billion kWh of electricity to Zhejiang annually after it is put into operation. The sending end gathers Gansu's photovoltaic power, wind power, and energy-saving thermal power plants through a 750kV AC system, and the receiving end is connected to Zhejiang's load center through a 500kV AC system.

The Gansu-Zhejiang Power Transmission 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, ultra high pressure has urgent and continuous industry demand to support the integration of new energy in the central and western regions.

According to the announcement of Sun.King Tech's procurement agreement, the core equipment demand for flexible and direct current valves has been clarified again. At present, the reserves of flexible and direct current projects are abundant, and combined with the demand for offshore wind power and overseas, the equipment and component links are expected to gradually enter the period of performance realization. It is recommended to layout in two main directions: the growth of ultra high pressure and supporting power transmission and transformation demand brought about by the construction of ultra high pressure projects, and the technological progress brought about by the flexible direct current of ultra high pressure.

1) Industrial chain enterprises benefiting from the construction of ultra high pressure direct current channels and the technological progress of flexible direct current.

2) Industry chain enterprises benefiting from the construction of ultra high- pressure and the demand for supporting transmission and transformation construction.

Enterprises related to ultra high pressure equipment include:

Sun.King Tech (00580): announced that on September 14, 2024, a subsidiary of the company, as a supplier, signed a six-party agreement with five parties (referred to as "purchasers"), including Changzhou Borui Electric Power Automation Equipment Co., Ltd., Nanjing Nanrui Semiconductor Co., Ltd., XJ Electric Co., Ltd., Xi'an Xidian Electric Power System Co., Ltd., and Rongxinhuik Electric Co., Ltd., with a total purchase amount of RMB 0.624 billion for power electronic devices, to be used in the Gansu-Zhejiang ±800 kV ultra high-voltage direct current transmission project (Gansu to Zhejiang project).