CHINA DATA CENTER ELECTRICALS: 800VDC POWER & COOLING CORPORATE DAY TAKEAWAYS — No signs of demand slowdown so far; Emerging ASIC opportunities; Gradual 800 VDC transition; Buy Kstar/Envicool/Hongfa/Jianghai

On Nov 4, 2026, we hosted 4 companies in the data center electricals supply chain (Kstar, Megmeet, Honor Electronic, Sinexcel) and a liquid cooling industry expert during our GS 2026 China Next-Gen Power & Mobility Corporate Day in Shenzhen. While US backlogs are strong so far, we caution that potential policy-driven project delays could weigh on order/sales momentum. Meanwhile, the growth narrative is shifting toward Southeast Asian expansion and Chinese hyperscaler buildout with easing AI chip constraints. Ex-China capacity bottlenecks are accelerating global ASIC vendors' adoption of Chinese liquid cooling and high-power infrastructure. To optimize profitability and mitigate geopolitical friction, suppliers are expanding manufacturing footprints to ex-China regions. On the other hand, the transition to 800VDC architectures remains gradual, with more pilot programs expected in 2027E before broader scaling in 2028E and beyond. Companies overall note US order backlogs and project pipel