Sun King Technology (580 HK, HK$2.79, HK$4.5bn) An overlooked play in supplying critical components to AIDCs

Sun King is a leader in China’s power transmission and distribution components.  It is also the China general agent for Hitachi Energy Semiconductor (formerly ABB Semiconductor) in China. In recent years, its products for HVDC Flexible (aka HVDC Light by ABB) and new energy storage have been driving the company’s growth.  In 2025, revenue reached RMB 2.3bn (+40% YoY) with a net profit of RMB 138mn (+34.5% YoY). As AI data centers are upgrading to 800V HVDC, demand for solid-state transformers (SST) and related components is set to surge. However, in our opinion, the company’s strength in this area remains unnoticed by investors.

Solid-State DC Circuit Breaker (SSCB) – Key Safety Device for 800V HVDC in AI Data Centers: AI-driven power demand is boosting data center power architecture from 54V low voltage to 800V HVDC, with solid-state transformer (SST) as the next‑generation solution.  It is anticipated that by 2028, global new AI data center power demand may exceed 20GW, implying a market size over RMB20bn.

Sun King has strategically prioritized data center power systems and launched a series of SSCBs covering 800V and 1500V platforms. The product originates from Swiss subsidiary Astrol (ex‑ABB power electronics team), with a 1500V marine version already deployed at Siemens, ABB, and Schneider. It is expected that Sun King’s 800V products will see its first shipment by end‑2026 and mass production will take place as soon as 2H27. The company is already engaged with key AIDC integrators in north America including Delta, and Vertiv.  With limited number of domestic competitions in the SSCB space, we believe Sun King will enjoy a first-mover advantage.

2300V SiC MOSFET – Core Enabler of SST High‑Voltage Operation: SST requires SiC MOSFETs for high-voltage, high-frequency operation. To support higher power density and efficiency, SiC voltage ratings are moving from 1.2kV toward 3.3kV and beyond. Infineon and Wolfspeed have already introduced 2300V+ devices, and Sun King has launched its own 2300V SiC MOSFET in April 2026, directly targeting data center SSTs. The management indicated that 1200V/1500V packaging is expected in 3Q26, and 2300V sampling and validation by end‑2026, which are roughly in line with Infineon’s timeline. Revenue from self-developed power semiconductors already doubled in FY25 and stood at RMB121mn, accounting for 5.4% of total revenue. This segment is poised to become a new growth driver, as SST volume production commences in 2027, combined with tight SiC supply, will likely accelerate domestic substitution.

A Critical Supplier Essential to Power Grid Development: The 15th Five‑Year Plan (2026–2030) is expected to witness State Grid’s fixed asset investment reaching RMB4tn, up 40% from the previous version. Priorities include UHV DC and grid digitalization, offering clear growth for T&D component suppliers. Sun King is a likely beneficiary as it is holding several industry-leading and proprietary technologies in conventional UHV DC, with strong technical barriers and high GPM.

Its anode‑saturated reactor is the only domestically developed technology, and nearly all domestic UHV projects since 2014 have applied Sun King’s product. Its power capacitor business ranks among the top three in the market. In HVDC Flexible, the company has achieved a domestic breakthrough in DC‑link capacitors, capturing 75% of the domestic share in the Gansu‑Zhejiang project.

In 2025, combined revenue from conventional and HVDC Flexible reached RMB872mn, with 35% YoY growth and around 40% of total revenue. The company guides at least 15% YoY growth in 2026, lifting the segment revenue above RMB 1bn. Potential orders for these segments under the 15th Five‑Year Plan already exceed RMB 8bn.

Our Views: Sun King is a leader in China’s power transmission with clients including NARI, XD Electric, and State Grid. In May 2026, the company signed a strategic partnership with Siyuan Electric (a major T&D equipment manufacturer) to co-develop 800V DC systems, leveraging Siyuan’s overseas channel for global expansion. 

It is a leading player in the high potential AIDC power systems.  Industry research Semi Analysis forecasts that the global SST market will reach roughly $13bn by 2030 (estimated CAGR ~90%) and Yole Group projects the global SiC power device market at over $10bn by 2030 (CAGR 20%). Sun King fits well here by providing three critical SST components, namely the 2300V SiC MOSFET (the switching core), the SSCB (safety protection), and the DC-link capacitor (passive device).  

We are positive on the company’s positioning across both the UHV construction cycle and the AI data center power upgrade trend. Going forward, the key catalysts are the volume ramp‑up of SST and AI data center power products. The counter is trading at 26x FY26E P/E. (Research Department)