Shenzhen Kstar Science & Technology Co., Ltd. (Kstar) (002518)

Individual Stock Analysis Report　|　Industry: Power Electronics Equipment and Energy Infrastructure　|　Report Date: September 13, 2026　|　As of the September 11, 2026 close; technical positioning is primarily based on the closing price of RMB 34.74, while certain indicators are sourced from third-party pages or estimated based on historical closing prices

This report was automatically compiled by AI based on publicly available information. It is for reference only and does not constitute investment advice.

1. Executive Summary

Kstar generated revenue of RMB 2.591 billion in the first half of 2026, up 19.81% year on year; net profit attributable to shareholders was RMB 290 million, up 13.61%, while non-GAAP attributable net profit was RMB 268 million, up 13.39%. Both revenue and profit continued to grow, although profit growth was slower than revenue growth. Net cash flow from operating activities was RMB 177 million, up 29.46% year on year. By business, smart power and data-center products generated revenue of RMB 1.526 billion, up 17.52%; PV-storage-charging products and systems generated revenue of RMB 1.005 billion, up 25.08%; overseas revenue was RMB 1.512 billion, accounting for 58.35% of total revenue and increasing 43.92% year on year.

The company’s growth is primarily driven jointly by data-center infrastructure and new-energy PV-storage-charging businesses. In 2025, data-center industry revenue was RMB 3.131 billion, accounting for 59.40% of total revenue; new-energy industry revenue was RMB 2.087 billion, up 51.39%. Data-center UPS, liquid-cooling thermal management and integrated power modules have relatively high barriers in reliability, certification and services. The new-energy business benefits from overseas markets, the recovery of energy-storage operations and product volume growth, but has a higher degree of standardization and more intense price competition. Its profitability is therefore more sensitive to product mix and market prices.

Profitability has recovered from the low point in 2024 but has not yet returned to 2023 levels. In 2025, the company’s gross margin was approximately 28.98% and net margin approximately 11.68%. The gross margin of the new-energy industry rose to 19.42%, but remained significantly below that of the data-center business. In the first half of 2026, overall gross margin was approximately 29.4%, broadly flat year on year. The company has a high proportion of raw-material costs. In 2025, raw materials accounted for 84.01% and 87.82% of the respective product costs of data-center and new-energy products, meaning that costs, exchange rates and the competitive landscape have a substantial impact on profit elasticity.

As of September 11, 2026, the share price closed at RMB 34.74, in the lower part of its 52-week range and below the MA20, MA50 and MA100, but slightly above the level around the MA200. MACD remained in negative territory, while RSI14 was 45.345. The technical picture therefore showed short-term recovery alongside medium-term weakness. The current dynamic P/E was approximately 31.33x and the non-GAAP dynamic P/E approximately 33.23x, indicating that the valuation already incorporates some growth expectations. The institutional average forecast for 2026 attributable net profit was RMB 887 million, but this represents research-firm forecasts rather than company guidance.

2. Company Overview

2.1 Basic Information

2.2 Main Businesses and Product Portfolio

• Critical data-center infrastructure: Includes UPS uninterruptible power supplies, precision air conditioners and data-center thermal-control equipment, micro-module data centers, integrated power modules, lead-acid and lithium iron phosphate batteries, power and environmental monitoring, prefabricated and containerized data-center solutions, as well as high-power UPS and liquid-cooling thermal-management products for AI computing centers. Data-center industry revenue was RMB 3.131 billion in 2025, accounting for 59.40% of total revenue; smart power and data-center product revenue was RMB 2.955 billion, accounting for 56.05% of total revenue and increasing 13.76% year on year.
• New-energy PV-storage-charging business: Includes centralized and string PV inverters, residential PV and energy-storage inverters, intelligent combiner boxes and monitoring systems, energy-storage converters (PCS), utility-scale energy storage, commercial and industrial energy storage, residential energy storage, integrated inverter-boost systems, EMS energy-management systems, peak-shaving and frequency-regulation systems, large containerized energy-storage systems, and integrated PV-storage-charging systems. New-energy industry revenue was RMB 2.087 billion in 2025, accounting for 39.61% of total revenue and increasing 51.39% year on year; PV-storage-charging products and systems generated revenue of RMB 2.069 billion, accounting for 39.26% of total revenue and increasing 52.01% year on year.
• New-energy vehicle charging business: Includes split-type DC chargers, liquid-cooled DC chargers, integrated DC chargers, AC charging piles, charging modules and operation-management platforms. The 2025 annual report disclosed products covering 7kW AC charging piles, 120—480kW split-type DC chargers, 480—960kW fully liquid-cooled split-type DC chargers and 2.5MW DC charging piles. The business primarily serves power companies, energy companies, urban investment and transportation investment companies, expressways, charging operators, heavy trucks and automakers, and is not yet a major revenue contributor.
• Production and sales cross-check: In 2025, data-center product sales were 2.3799 million units, production was 2.3471 million units and ending inventory was 242,900 units; new-energy product sales were 292,400 units, production was 309,200 units and ending inventory was 75,600 units. Compared with 2024, data-center product sales declined 3.64%, while new-energy product sales increased 52.04%.

2.3 Position in the Upstream and Downstream Value Chain and Cost-Profit Structure

Kstar operates in the power-electronics equipment manufacturing and energy-infrastructure systems-integration segment. Its data-center UPS and infrastructure businesses occupy a relatively high-value-added position in the midstream, while its PV, energy-storage and charging businesses are positioned in more intensely competitive power-conversion equipment and systems-integration segments.

• Major purchases include power semiconductors, IGBTs, MOSFETs, chips, control boards, electronic components, inductors, transformers, rectifiers, capacitors, relays, switching devices, as well as copper, aluminum, steel and sheet-metal structural parts.
• Data-center and thermal-management products also involve lead-acid batteries, lithium-battery-related materials and cells, as well as air-conditioning compressors, heat exchangers, fans and refrigeration-system components. PV inverters and energy-storage PCS also require power devices and structural components.
• In 2025, raw-material costs for data-center products were RMB 1.724 billion, accounting for 84.01% of the product’s cost; raw-material costs for new-energy products were RMB 1.477 billion, accounting for 87.82% of new-energy product costs, indicating a high proportion of material costs.
• Purchases from the five largest suppliers were RMB 691 million in 2025, accounting for 22.13% of total annual purchases; the largest supplier accounted for 8.25% of total purchases. The company has not fully disclosed supplier dependence for key categories such as power semiconductors, chips and battery cells, so it cannot be concluded that all core components have multi-supplier substitution capabilities.
• The company has certain scale-purchasing capabilities for ordinary structural parts, general-purpose electronic components and some standardized materials. However, key components such as power semiconductors, core chips and battery cells remain affected by global supply and demand, technical certification and supplier concentration. The company therefore has some price-taker characteristics on the cost side. Cost improvements will mainly depend on scale procurement, product platformization, supply-chain optimization and product-mix upgrades.
• Downstream customers include financial institutions, telecommunications operators, internet and IDC companies, government and public-infrastructure customers, power and energy groups, PV power-station and energy-storage project developers, overseas distributors and ODM customers, as well as charging operators, expressways and automakers.
• Data-center products have entered the procurement systems of China Mobile, China Unicom and China Telecom, and serve financial customers including ICBC, ABC, Bank of China and CCB, as well as internet data-center customers. These customers place high importance on reliability, certification, delivery and after-sales service, resulting in relatively high supplier-switching costs.
• The new-energy business is more market-oriented. PV inverters and energy-storage systems are sensitive to initial investment costs, system efficiency, warranties, delivery and overseas certification. Manufacturers generally have weaker bargaining power with downstream customers than in the high-reliability data-center UPS business. Energy storage is also affected by cell prices, project returns, overseas policies and trade barriers.
• Sales to the five largest customers were RMB 1.232 billion in 2025, accounting for 23.38% of total revenue; the largest customer accounted for 11.82%. The ratio for the five largest customers was 17.34% in 2024. The data comes from the company’s annual report, but customers are disclosed anonymously, making it impossible to determine whether there is dependence on a single major customer or concentration risk by customer industry.
• The current memorandum lists five-largest-customer concentration data only for 2024 and 2025. Actual customer names were not disclosed, so customer quality, industry distribution and actual dependence cannot be further cross-checked. The latest annual report should be taken as the definitive reference.
• As of December 31, 2024, the book value of accounts receivable was RMB 1.499 billion, approximately 36.05% of annual revenue and approximately 3.80x attributable net profit; accounts-receivable days were approximately 124.54 days in 2024 versus approximately 133.68 days in 2023. Collection efficiency improved, but the absolute number of days remained high. Net operating cash flow was RMB 911 million in 2025, up 85.53% year on year, mainly related to increased operating scale, higher sales collections and a higher proportion of bill settlement on the supply-chain side. At the end of 2025, the book value of accounts receivable was RMB 1.590 billion, accounting for 20.22% of total assets. These data indicate project-based sales, credit-period settlement and periodic settlement by large customers. Cash collection is not entirely controlled by the company, and attention should remain focused on the collection quality of overseas new-energy customers, project customers and ODM customers.
• Purchases from the five largest suppliers accounted for 22.13% in 2025, with the largest supplier accounting for 8.25%; sales to the five largest customers accounted for 23.38%, with the largest customer accounting for 11.82%. Overall supplier concentration is not extreme, but dependence on individual suppliers of key power semiconductors, chips and battery cells has not been fully disclosed. Customer concentration increased from 17.34% in 2024, but because customer names are anonymous, customer quality, industry distribution and single-customer dependence cannot be further verified. The latest annual report should be taken as the definitive reference.

Kstar occupies a relatively high-value-added position in the midstream of power-electronics equipment manufacturing and systems integration. Data-center UPS products generate relatively high value added through reliability, certification, brand and service, while the new-energy PV-storage-charging business is closer to the highly competitive power-conversion equipment segment, where material costs account for a high proportion of costs. Future profit improvement will mainly depend on volume growth in high-power UPS, liquid cooling and integrated power modules for AI data centers; upgrades in new energy toward overseas brands, commercial and industrial energy storage and higher-value-added systems solutions; expansion of overseas localized services and customer certifications; and scale procurement, product platformization and supply-chain optimization.

3. Financial Data and Valuation Analysis

3.1 Recent Operating Results

The latest formal financial report is the 2026 interim report disclosed by the company on August 27, 2026, covering the period ended June 30, 2026. Non-GAAP attributable net profit in the first half of 2026 was RMB 268.26 million, up 13.39% year on year; basic EPS was RMB 0.50, up 13.64%; and net cash flow from operating activities was RMB 177.13 million, up 29.46%. In 2025, non-GAAP attributable net profit was RMB 577.04 million, up 67.51%; basic EPS was RMB 1.05, up 54.41%; and net cash flow from operating activities was RMB 911.46 million, up 85.53%.

In the first half of 2026, the company maintained year-on-year growth in revenue and profit, but net profit growth was slower than revenue growth. Overall gross margin was approximately 29.4%, broadly flat year on year. Financial expenses changed from a net gain of RMB 43.06 million in the first half of 2025 to an expense of RMB 28.41 million in the first half of 2026, mainly because exchange losses increased due to movements in the US dollar and euro exchange rates. By product, smart power and data-center products generated revenue of RMB 1.52612 billion in the first half of 2026, up 17.52% year on year; PV-storage-charging products and systems generated RMB 1.00520 billion, compared with RMB 803.63 million in the prior-year period. Second-quarter revenue was approximately RMB 1.35 billion and attributable net profit approximately RMB 151 million; these figures and the judgment of an acceleration in data-center operations are based on securities-broker analysis rather than formal company disclosure. 2025 results were primarily driven by the data-center business, overseas markets and the recovery of energy-storage operations.

3.2 Earnings Forecasts

Forecast data comes from a compilation of institutional research reports by Tonghuashun F10. As of August 27, 2026, 11 institutions had issued 2026 earnings forecasts during the preceding six months. These are not company guidance or formal exchange disclosures. Representative forecasts include: Huaxi Securities expected 2026—2028 revenue of RMB 6.764 billion, RMB 8.587 billion and RMB 10.971 billion, attributable net profit of RMB 904 million, RMB 1.201 billion and RMB 1.542 billion, and EPS of RMB 1.55, RMB 2.06 and RMB 2.65, respectively, in its June 30, 2026 forecast; Huatai Securities expected revenue of RMB 6.758 billion, RMB 8.569 billion and RMB 10.718 billion, attributable net profit of RMB 907 million, RMB 1.179 billion and RMB 1.484 billion, and EPS of RMB 1.56, RMB 2.02 and RMB 2.55, respectively, in its June 1, 2026 forecast; and Huafu Securities expected revenue of RMB 7.026 billion, RMB 8.903 billion and RMB 10.931 billion, attributable net profit of RMB 906 million, RMB 1.191 billion and RMB 1.515 billion, and EPS of RMB 1.56, RMB 2.05 and RMB 2.60, respectively, in its May 1, 2026 forecast. Soochow Securities expected 2026—2028 attributable net profit of RMB 925 million, RMB 1.416 billion and RMB 1.951 billion, with EPS of approximately RMB 1.59, RMB 2.43 and RMB 3.35. Its forecast was materially higher than those of most institutions and represents a relatively optimistic scenario.

3.3 Valuation and Institutional Ratings

As of the September 11, 2026 close, the company’s share price was RMB 34.74, market capitalization was approximately RMB 20.23 billion, dynamic P/E approximately 31.33x, non-GAAP dynamic P/E approximately 33.23x, P/B approximately 4.07x and TTM EPS approximately RMB 1.11. Assuming the share price remains at RMB 34.74 and using Tonghuashun’s institutional consensus EPS, forecast P/E for 2026—2028 is approximately 22.9x, 17.1x and 13.1x, respectively. Based on consensus attributable net profit, forecast P/E is approximately 22.8x, 17.0x and 13.1x, respectively. Huatai Securities’ target price of RMB 54.55 corresponds to approximately 35x 2026 P/E, while Soochow Securities’ target price of RMB 64 corresponds to approximately 40x 2026 P/E. Current TTM P/E of approximately 31x is higher than the forward P/E calculated using 2026 institutional forecast profit, indicating that the valuation already incorporates some earnings-growth expectations. If AIDC orders, overseas ODM, high-power UPS and overseas energy-storage demand materialize, earnings growth could drive valuation lower year by year. If exchange-rate volatility, overseas trade policies, energy-storage price competition, raw-material prices or order-delivery timing fall short of expectations, earnings forecasts could be revised downward and valuation could come under pressure. The above valuation calculations do not consider future changes in share capital, ex-dividend adjustments or forecast revisions.

4. Recent News and Announcements

4.1 No New Major Company Announcements in September 2026

As of September 12, 2026, public searches found no new earnings forecast, share repurchase, controlling shareholder shareholding increase or reduction plan, major merger and acquisition or regulatory penalty announcement disclosed by Kstar between September 1 and September 12, 2026. Current September information mainly concerns shareholder numbers, margin financing and securities lending, and market news. Certain Shenzhen Stock Exchange and CNINFO search pages use dynamic loading, so announcements that were newly disclosed but not yet indexed by search engines cannot be completely ruled out.

4.2 2026 Interim Report: Revenue and Profit Continued to Grow

Kstar disclosed its 2026 interim report and summary on August 28, 2026. In the first half of 2026, revenue was RMB 2.591 billion, up 19.81% year on year; net profit attributable to shareholders of listed companies was RMB 290 million, up 13.61%; and non-GAAP attributable net profit was RMB 268 million, up 13.39%.

4.3 Data-Center and PV-Storage-Charging Businesses Grew, with Faster Overseas Revenue Growth

In the first half of 2026, smart power and data-center products generated revenue of RMB 1.526 billion, accounting for approximately 58.89% of total revenue and increasing 17.52% year on year; PV-storage-charging products and systems generated RMB 1.005 billion, accounting for approximately 38.79% and increasing 25.08% year on year. Overseas revenue was RMB 1.512 billion, accounting for 58.35% of total revenue and increasing 43.92% year on year.

4.4 Interim Report Disclosed No Major Asset Sales or Profit-Distribution Arrangements

The company disclosed that there were no other major matters requiring explanation in the first half of 2026 and did not disclose any major asset sale or major equity sale. The profit-distribution proposal for the reporting period was to pay no cash dividend, issue no bonus shares and make no capitalization of capital reserves.

4.5 RMB 200 Million Aggregate Maximum Guarantee for Wholly Owned Subsidiaries

On August 8, 2026, the company disclosed an update on guarantees provided to wholly owned subsidiaries. The company signed maximum guarantee agreements with the Shenzhen Branch of Ping An Bank, providing joint and several liability guarantees with maximum principal limits of RMB 100 million each for Shenzhen Kstar New Energy Co., Ltd. and Guangdong Kstar Industrial Technology Co., Ltd., for an aggregate of RMB 200 million. The guarantee period is three years from the date on which the performance period of the principal contract debt expires. As of the announcement date, the total approved guarantee quota for the company and its subsidiaries was RMB 1.305 billion, while the actual effective guarantee balance was RMB 605 million. There were no overdue guarantees, litigation-related guarantees or guarantees provided to entities outside the consolidated statements.

4.6 Controlling Shareholder’s Reduction Plan Completed; Ownership Reduced to 55.76%

The controlling shareholder, Ningbo Kstar Venture Capital Partnership (Limited Partnership), reduced its holdings by a cumulative 5.8222 million shares through centralized bidding between March 11 and May 12, 2026, equivalent to 1.00% of the company’s total share capital. Following completion, its holdings declined from 330.46206 million shares, or 56.76%, to 324.63986 million shares, or 55.76%. As of June 30, 2026, the interim report showed that its ownership remained 55.76%, and no new reduction plan by the controlling shareholder had been disclosed.

4.7 Director Li Chunying Reduced Holdings by 424,000 Shares During the Reporting Period

The company’s 2026 interim report disclosed that Director Li Chunying reduced her holdings by 424,000 shares during the reporting period, with her period-end holdings declining from 1.69638 million shares to 1.27238 million shares. As of September 12, 2026, no new executive share-reduction plan or completion announcement for September 2026 had been found.

4.8 Shareholder Numbers Relatively Stable

As of June 30, 2026, the total number of ordinary-shareholders was 46,699. As of August 10 and August 20, 2026, market-data platforms showed approximately 53,000 shareholders, with the August 20 figure broadly flat compared with August 10. The latter two figures mainly come from market and shareholder databases and are not formal periodic disclosures in the interim report.

4.9 2025 Earnings Guidance Was Broadly Achieved

On January 17, 2026, the company disclosed its 2025 earnings forecast, expecting 2025 attributable net profit of RMB 600 million to RMB 660 million, representing year-on-year growth of 52.21% to 67.43%. Actual 2025 attributable net profit in the annual report was RMB 611 million, within the forecast range. As of September 12, 2026, no 2026 interim or third-quarter earnings forecast had been found. The company directly disclosed its interim report on August 28, 2026.

4.10 No Share-Repurchase Announcement Identified in 2026

As of September 12, 2026, no valid announcement had been found indicating that Kstar had implemented a share repurchase, released a new repurchase plan or disclosed repurchase progress during 2026. The 2026 interim report disclosed that share-repurchase implementation during the reporting period was not applicable and that there was no repurchase account among the top ten shareholders.

4.11 No New Major M&A, Asset Restructuring or Regulatory Negative Events Identified

As of September 12, 2026, no new announcement of major M&A, major asset restructuring or major equity acquisition by Kstar in September 2026 had been found. During the same period, no Shenzhen Stock Exchange, China Securities Regulatory Commission or company announcement was found disclosing regulatory measures, disciplinary action, an inquiry letter or an investigation involving Kstar. Market discussions of overseas ODM, data centers, energy storage and AIDC mainly relate to operating outlook, investor-relations activities or securities-broker research interpretations and cannot be directly regarded as signed and effective major M&A transactions or major order announcements.

5. Share-Price Performance and Technical Analysis

5.1 Price Overview

5.2 Technical Indicators

As of September 11, 2026, Kstar closed at RMB 34.74. The price was in the lower part of its 52-week range, below the MA20, MA50 and MA100, but slightly above the MA5, MA10 and the level around the MA200. The technical picture combined short-term recovery with medium-term weakness: MACD was -0.34 and remained in negative territory, while RSI14 was 45.345 and had not entered a clearly oversold area. The estimated Bollinger Bands showed that the share price was below the middle band and above the lower band. On the fund-flow side, combined net outflow from extra-large and large orders was approximately RMB 21.5554 million on September 11. Turnover value and turnover rate over the past five days had declined from earlier highs, with no clear signal of sustained main-fund inflows. In terms of shareholder structure, concentration among the top ten tradable shareholders was relatively high, but the concentration data was as of June 30, 2026 and cannot be directly treated as the real-time position structure on September 11.

5.3 Short-Term Outlook (Next Week, Scenario Analysis for Reference Only)

⚠️ Risk warning: The following content is only a subjective scenario analysis based on closing data as of September 11, 2026. It does not constitute investment advice or a definitive judgment about future price movements.

① Key Technical Levels

② Scenarios for the Next Week (Subjective Weights, Not Statistical Probabilities)

• Range-bound consolidation (relatively high subjective heuristic weight, approximately six-tenths; this weight is based on the current technical and fund-flow structure and is not a statistical probability): The reference price range is RMB 33.80~35.60. Trigger conditions include holding the RMB 33.80~34.30 support zone, turnover value remaining around RMB 450 million~RMB 700 million, no obvious new negative catalyst and no decisive break above the RMB 35.00~35.60 resistance zone. In this scenario, the MA20 and MA50 may repeatedly act as resistance, with the price more likely to fluctuate around RMB 34~35.
• Weak decline (medium subjective heuristic weight; this weight is based on the current technical and fund-flow structure and is not a statistical probability): The reference price range is RMB 32.30~33.80. Trigger conditions include a decisive closing break below RMB 33.80, consecutive net outflows of main funds, an expansion in daily turnover while the share price declines, or simultaneous weakness in the electrical-equipment, energy-storage and data-center sectors. If RMB 33.80 is lost, RMB 33.20 and the RMB 32.70~32.95 area should be monitored. If strong support is also lost, attention should shift to around RMB 32.30 and the 52-week low of RMB 29.26.
• Strong rebound (low subjective heuristic weight; this weight is based on the current technical and fund-flow structure and is not a statistical probability): The reference price range is RMB 35.60~36.70. Trigger conditions include a high-volume break above RMB 35.60, turnover value expanding continuously to approximately RMB 750 million~RMB 800 million or more, narrowing MACD negativity and signs of a short-term golden cross, or sustained gains in related sectors and new catalysts from company orders, earnings or industrial policy. If the breakout is effective, RMB 36.10 and RMB 36.60~36.70 should be watched in the short term. With MACD still negative and the MA20 and MA50 acting as resistance, the rebound should for now be defined as a technical recovery rather than a confirmed medium-term trend reversal.

③ Fund-Flow and Liquidity Background

As of September 11, 2026, turnover value over the past five trading days was approximately RMB 488 million~RMB 879 million, with a turnover rate of approximately 2.46%~4.24%, representing moderate activity. Turnover value on September 11 was approximately RMB 501 million and the turnover rate was 2.58%, down from the high-volume levels on September 7—8. In terms of shareholder structure, as of June 30, 2026, the top ten tradable shareholders held approximately 388 million shares in aggregate, representing approximately 68.70% of tradable shares. Ningbo Kstar Venture Capital Partnership held approximately 325 million shares, or approximately 57.44% of tradable shares; Hong Kong Securities Clearing Company Limited held approximately 28.11 million shares, or approximately 4.97%. Funds or social-security products including E Fund Environmental Protection Theme Mixed A, Social Security Fund 17022 Portfolio, E Fund High-End Manufacturing Mixed A and China Universal Technology Innovation Mixed A were among the top ten tradable shareholders. Tonghuashun statistics show that as of June 30, 2026, approximately 311 institutions held positions, representing approximately 72.65% of tradable shares. Funds held approximately 9.45%, insurance companies approximately 0.61% and other institutions approximately 62.41%. The total number of shareholders was approximately 53,000 as of August 20, 2026, an increase of approximately 8.16% from July 31, 2026, indicating that chip concentration had declined somewhat since July compared with late June to mid-July. The latest shareholder data is as of June 30, 2026, more than two months before the current closing date. Portfolio adjustments and share purchases or sales may have occurred during this period, so the data cannot be directly treated as the real-time position structure on September 11, 2026. The practical implication is that the controlling shareholder and top ten tradable shareholders have relatively high concentration, meaning that actually tradable shares are relatively concentrated. Controlling-shareholder reductions, institutional portfolio adjustments or concentrated trading by large funds could therefore have a relatively visible impact on prices. However, current turnover value and turnover rate do not indicate extremely low liquidity.

A verifiable trading-confirmation signal would be as follows: if daily turnover value expands to approximately RMB 750 million~RMB 800 million or more for two consecutive days, or at least repeatedly during the coming week, while the share price simultaneously moves above RMB 35.60, this could be viewed as confirmation of renewed short-term fund strength. If turnover expands while the share price falls below RMB 33.80, the move would more likely indicate high-volume distribution or fund outflows rather than effective buying.

④ Key Points to Monitor (Observation Framework Only, Not Trading Instructions)

• Observe whether the RMB 35.00~35.60 resistance zone can be decisively broken with an increase in turnover value; this observation does not constitute a trading instruction.
• Observe whether the RMB 33.80~34.30 first-support zone holds and whether a break below RMB 33.80 extends toward RMB 33.20; this observation does not constitute a trading instruction.
• Observe the combined support provided by the RMB 32.70~33.20 strong-support zone, the lower Bollinger Band, pivot support and the phased low; this observation does not constitute a trading instruction.
• Observe whether turnover value can return to approximately RMB 750 million~RMB 800 million or more, and assess the nature of fund flows by whether the price moves above RMB 35.60 or below RMB 33.80; this observation does not constitute a trading instruction.

The above scenario analysis is based on the September 11, 2026 closing data and calculations using historical prices and technical indicators. Short-term share prices may also be affected by news, fund flows, broader-market conditions and other factors. Technical indicators have inherent lags and limitations. This analysis does not guarantee actual future price movements or constitute a buy or sell recommendation. Investors should independently assess the situation based on the latest market information and assume their own investment risks.

6. Industry Landscape and Competitor Analysis

6.1 Industry Status

The company’s industry spans data-center UPS and infrastructure, PV inverters, energy-storage PCS and new-energy vehicle charging equipment. Competition in the data-center business focuses on power-range coverage, modular and high-power product technology, power-supply reliability and efficiency, liquid-cooling and micro-module capabilities, certification among key industry customers, project delivery and after-sales service. Competition in new energy focuses on cell and power-device costs, conversion efficiency, safety and thermal management, overseas certification, project delivery, financing and bankability, warranties and overseas localized services.

6.2 Competitive Landscape

• Competitors in data-center UPS and infrastructure include international integrated manufacturers such as Schneider, Vertiv and Eaton; domestic integrated digital-energy manufacturers such as Huawei Digital Power, Kehua Data and Kstar; and specialized-market manufacturers such as East, Zhongheng Electric and INVT.
• Public industry data shows that the main participants in China’s high-end UPS market in 2023 included Kehua Data, Huawei, Vertiv, Schneider, Eaton and Kstar. ICTresearch’s 2024—2025 China UPS Product Market Report listed Schneider, Vertiv, Eaton, Huawei and Kehua Data as key competitors.
• Major PV inverter competitors include Huawei, Sungrow, Sineng Electric, TBEA, Kehua Data, GoodWe, Ginlong Technologies, Hopewind, Deye and Kstar.
• Energy-storage PCS competitors include Sungrow, Kehua Digital Energy, Sineng Electric, NARI-TECH, Inovance, Xuji Electric, Hopewind and Inovance Energy. According to CNESA’s 2024 domestic energy-storage PCS shipment rankings, Kstar was not among the top ten, indicating that its domestic utility-scale PCS scale remains behind leading manufacturers.
• Kstar has a domestic brand, R&D, manufacturing, customer-certification and delivery base in UPS and data centers, but compared with Huawei, Schneider and Vertiv, it still lags in global revenue scale, software platforms, hyperscale data-center ecosystems and overseas service networks.
• The new-energy industry has a higher degree of standardization and faster product-price changes. Kstar can leverage power-electronics technology, customer relationships and overseas channels developed in the UPS business, but its competitive advantages in new energy are not yet as well established as those in data-center UPS.

6.3 Major Competitors

Kstar’s core differentiation lies in its domestic brand, R&D and manufacturing capabilities, customer-certification base and flexible delivery capabilities in UPS and data-center infrastructure. Compared with international integrated manufacturers, it remains behind in globalization and software ecosystems. Compared with new-energy leaders such as Sungrow, it remains weaker in PV inverter and energy-storage PCS scale, domestic utility-scale energy-storage rankings and overseas systems-integration capabilities. The company’s business mix is shifting from absolute dominance by data centers toward a relatively balanced “data centers + new energy” structure. New-energy revenue recovered in 2025, but its gross margin remained below that of the data-center business, leaving overall profitability sensitive to new-energy price competition, overseas demand and product mix.

7. Risk Factors

• Risk of pressure on new-energy profitability and overall gross margin: New-energy revenue accounted for approximately 39.61% of total revenue in 2025, but its gross margin was 19.42%, still significantly below that of the data-center business. If competition intensifies in PV inverters, energy-storage PCS and PV-storage-charging products, revenue growth may not translate into corresponding profit growth.
• Raw-material and core-component cost risk: In 2025, raw-material costs accounted for 84.01% and 87.82% of the respective product costs of data-center and new-energy products. The company has insufficiently disclosed dependence on individual suppliers of key components such as power semiconductors, chips and battery cells. Rising component prices or supply constraints could compress gross margins and affect delivery.
• Overseas business, exchange-rate and trade-policy risk: Overseas revenue accounted for 58.35% of total revenue in the first half of 2026, up 43.92% year on year. During the same period, financial expenses changed from a net gain in the first half of 2025 to an expense, mainly because changes in the US dollar and euro exchange rates increased exchange losses. Changes in overseas policies, trade barriers, certification and localized services could affect orders, collections and profit.
• Accounts-receivable and project-collection risk: At the end of 2025, the book value of accounts receivable was RMB 1.590 billion, accounting for 20.22% of total assets; accounts-receivable days were approximately 124.54 days in 2024. The company’s customers include large project customers, overseas customers and ODM customers. Project-based and credit-period settlement may cause revenue growth and cash collection to become out of sync.
• Rising customer concentration and major-customer dependence risk: Sales to the five largest customers accounted for 23.38% of total revenue in 2025, up from 17.34% in 2024, while the largest customer accounted for 11.82%. Customer names were disclosed anonymously, preventing further verification of actual customer quality, industry distribution and single-customer dependence. Changes in procurement schedules among important customers could affect revenue.
• Data-center competition and order-fulfillment risk: Although data-center products benefit from customer certifications, reliability and service advantages, the company faces competition from Huawei Digital Power, Kehua Data, Schneider, Vertiv and Eaton. Growth expectations for AI computing centers, high-power UPS and liquid cooling still need to be validated through actual orders, delivery and profit performance. Market outlook should not be directly equated with effective major orders.
• Operating and market-volatility risks from guarantees and controlling-shareholder reductions: The company provided joint and several liability guarantees with maximum principal limits of RMB 100 million each for two wholly owned subsidiaries. Total approved guarantees were RMB 1.305 billion and the actual effective guarantee balance was RMB 605 million. At the same time, the controlling shareholder completed a 1% share reduction in 2026, lowering its ownership to 55.76%. These matters may increase market attention to funding arrangements and shareholder reductions.
• Valuation and technical volatility risk: As of September 11, 2026, the dynamic P/E was approximately 31.33x, the share price had declined approximately 47% from its 52-week high, MACD was negative and the share price was below several medium-term moving averages. If institutional earnings forecasts are revised downward, earnings delivery falls short of expectations or the share price breaks technical support, the company could face combined valuation and price pressure.

8. Conclusion and Outlook

Kstar’s medium-term growth depends on whether its data-center and new-energy business lines can become complementary. The data-center business can leverage its foundation in UPS, liquid-cooling thermal management, high-power power supplies and customer certifications. The new-energy business needs to increase value added through overseas channels, commercial and industrial energy storage, overseas localized services and systems solutions. Both core businesses continued to grow in the first half of 2026, while overseas revenue grew rapidly, indicating that overseas markets and the PV-storage-charging business remain important sources of incremental growth.

In terms of earnings quality, operating cash flow improved and the 2025 earnings forecast was broadly achieved, indicating continued fundamental growth. However, the increasing share of new-energy revenue makes overall margins more vulnerable to price competition, raw-material costs and fluctuations in overseas demand. Going forward, attention should focus on actual orders and delivery in high-power UPS, data-center-related products, overseas ODM and energy storage, as well as whether revenue growth can translate into faster profit growth.

The share price is currently in the lower part of its 52-week range, and technical indicators have not confirmed a medium-term reversal. The RMB 35.00 to RMB 35.60 area faces resistance from multiple moving averages, while RMB 33.80 to RMB 34.30 and RMB 32.70 to RMB 33.20 are technical areas to monitor. The company’s future performance will continue to depend on earnings delivery, the overseas operating environment, exchange rates and market risk appetite. Institutional earnings forecasts and technical scenarios do not constitute definitive judgments.

Data Sources

• Company Announcements_Kstar: 2024 Annual Report Summary_Sina Finance_Sina.com
• https://static.cninfo.com.cn/finalpage/2026-04-27/1225189515.PDF
• Kstar (002518)_Company Announcements_Kstar: Response to the Review Inquiry Letter on the Application Documents for Kstar’s Issuance of Shares to Specific Objects_Sina Finance_Sina.com
• Kstar (002518)_Company Announcements_Kstar: 2024 Annual Report_Sina Finance_Sina.com
• https://static.cninfo.com.cn/finalpage/2025-04-25/1223277009.PDF
• Analysis of China’s High-End Power Supply (UPS) Industry Market Status and Competitive Landscape in 2024: Kehua Data Ranked First in Market Share in 2023_Research Report - Forward Industry Research Institute
• 〖Industry Deep Dive〗Insights 2024: Competitive Landscape and Market Share of China’s PV Inverter Industry (Including Market Concentration and Corporate Competitiveness Evaluation)_Industry Research Report - Qianzhan.com
• https://research.cnesa.org/report/info/?id=6052&utm_source=openai
• Shenzhen Kstar Science & Technology Co., Ltd. 2025 Annual Report Summary
• Kstar (002518)_Company Announcements_Kstar: 2026 Interim Report_Sina Finance_Sina.com
• Kstar: 2026 Interim Report_Stock Channel_Securities Star
• 2026 Interim Report Review: Q2 Data Centers Accelerate, Overseas ODM + Commercial and Industrial Energy Storage Drive Growth - Macroeconomic Research Report_Data Centers_Eastmoney.com
• Kstar (002518)_Company Announcements_Kstar: 2025 Annual Report_Sina Finance_Sina.com
• Kstar (002518) Earnings Forecast_F10_Tonghuashun Financial Services
• [B23

Information Disclosure

Disclosure

Monday, April 27, 2026

[email protected] (0](https://epaper.stcn.com/att/202604/27/ZQ27B023-MM_eBook.pdf?utm_source=openai)

• Institutional Rating|CICC Gives Kstar an “Outperform” Rating
• Kstar (002518) Latest Stock Price, Real-Time Chart, Stock Price Analysis and Forecast_Investing.com
• Kstar (002518)_Stock Quotes, Market Homepage_CFI.cn
• Kstar (002518)_Company Announcements_Kstar: 2026 Interim Report_Sina Finance_Sina.com
• Kstar A-Share Shareholder Count Unchanged; Average Holdings per Tradable A-Share Holder Increased 0.00% to 10,700 Shares, Average Market Value Declined 1.92% to RMB 349,200_Sina Finance_Sina.com
• https://static.cninfo.com.cn/finalpage/2026-08-08/1225463283.PDF
• Kstar (002518)_Company Announcements_Kstar: Announcement on Providing Guarantees for Wholly Owned Subsidiaries_Sina Finance_Sina.com
• Recently, the company received notice from controlling shareholder Ningbo Kstar that, as of the date of this announcement, the reduction plan had been completed. The details are as follows:
• Kstar (002518) Earnings Forecast_Sina Finance_Sina.com
• Kstar (002518) Corporate Events_F10_Tonghuashun Financial Services
• Shenzhen Kstar Science & Technology Co., Ltd. 2026 Interim Report Summary_Shanghai Securities News
• Historical 002518.SZ stock prices (quote) - Shenzhen Kstar Science And Technology
• Kstar (002518) Technical Analysis, Future Forecast and Buy/Sell Operating Recommendations_Investing.com
• Kstar (002518)_Capital Flows_Securities Star
• Kstar (002518) Capital Flows_Individual Stock Market_Tonghuashun Finance
• Kstar (002518) Historical Stock Data: Historical Quotes, Prices and Charts_Investing.com
• Kstar (002518)_Shareholder Research_F10_Tonghuashun Financial Services

This report was automatically retrieved, compiled and generated by AI based on publicly available information. The information is current as of the September 11, 2026 close; technical positioning is primarily based on the closing price of RMB 34.74, while certain indicators are sourced from third-party pages or estimated based on historical closing prices and may differ in timeliness. Specific data should be verified against the company’s formal announcements and authoritative data terminals. This report is for information organization and research reference only and does not constitute investment advice. Investors should make independent judgments and assume their own investment risks.