Institutional Equity Research: Power Equipment Sector

Q3 2025 Mutual Fund Holdings Analysis – A Strategic Pivot Towards Wind, Storage, and Undervalued Solar Leaders

Date: November 19, 2025
Sector: Power Equipment (Shenwan Level 1)
Rating: Outperform (Stronger than Market)
Analyst: Zhu Pan (S0820525070001)
Contact: Lu Jiayi (S0820124120008)
Source: Aijian Securities Research Institute

Executive Summary

In the third quarter of 2025, institutional capital demonstrated a decisive shift in allocation within the Power Equipment sector, signaling a renewed confidence in specific sub-segments amidst broader market volatility. Based on an analysis of the top ten heavy holdings disclosed by actively managed public mutual funds, we observe a 1.61 percentage point (pct) quarter-on-quarter (QoQ) increase in the proportion of shares held in the Power Equipment industry. This uptick places Power Equipment among the top five sectors experiencing increased institutional ownership, alongside Non-ferrous Metals, Electronics, Media, and Machinery.

The core narrative of Q3 2025 is characterized by a diversification away from singular reliance on battery giants toward a more balanced portfolio encompassing wind power revival, energy storage integration, and undervalued solar module leaders. While Contemporary Amperex Technology Co. Limited (CATL) remains the undisputed largest holding by market value, its share count witnessed a notable decline, suggesting profit-taking or rebalancing by major fund managers. Conversely, significant inflows were directed toward Goldwind Science & Technology, Sunwoda Electronic, and Canadian Solar (Artes), indicating a strategic bet on the cyclical recovery of wind turbines, the expansion of consumer/energy storage batteries, and the stabilization of photovoltaic (PV) export margins.

Top-tier asset managers, particularly China Asset Management (Huaxia) and China Universal Asset Management (Huitianfu), led this aggressive repositioning, with Huaxia increasing its Power Equipment holdings by 125.64% in share count. The top 20 largest fund management companies collectively increased their active product holdings in the sector by 9.80% in share volume, reaching a total heavy holding market value of RMB 114.33 billion.

This report dissects these movements to provide institutional investors with a clear roadmap of where "smart money" is flowing, highlighting the divergence between legacy leaders and emerging beneficiaries of the energy transition’s next phase. We maintain an Outperform rating on the sector, driven by improving fundamentals in storage, resilient export data for PV modules, and technological breakthroughs in solid-state batteries and wind turbine efficiency.

Key Takeaways

1. Sector-Level Allocation: Power Equipment Reclaims Institutional Favor

• Relative Strength: In Q3 2025, 14 out of 28 Shenwan Level 1 industries saw an increase in institutional shareholding proportions. Power Equipment ranked third in terms of QoQ growth in shareholding proportion, trailing only Non-ferrous Metals and Electronics.
• Contrast with Defensive Sectors: The inflow into Power Equipment contrasts sharply with the outflow from traditionally defensive or saturated sectors such as Banks, Public Utilities, Automobiles, Home Appliances, and Transportation, which saw the largest declines in institutional ownership. This suggests a risk-on sentiment specifically targeted at high-growth potential within the green energy infrastructure space.
• Broad-Based Participation: The increase was not isolated to a few niche funds but was observed across the top 20 largest fund houses, indicating a consensus view on the sector’s bottoming-out process and future growth trajectory.

2. Stock-Specific Dynamics: The Rise of Wind and Storage, The Consolidation of Batteries

• Top Buys (The "Alpha" Generators):

  • Goldwind Science & Technology (002202.SZ): Emerged as the most significantly added stock by share count. Institutional holdings surged by 224.07% QoQ, with the number of shares held increasing by 0.82 billion. This reflects growing optimism about the domestic wind power installation cycle and Goldwind’s leadership in offshore wind technology.
  • Sunwoda Electronic (300207.SZ): Saw a 142.12% increase in share holdings. The surge is attributed to its dual-engine growth in consumer electronics batteries and rapid expansion in energy storage systems (ESS), aligning with the "AI + Storage" thesis highlighted in our previous deep dives.
  • Canadian Solar/Artes (688472.SH): Experienced an explosive 12,397.26% increase in share holdings (from a low base). This indicates a strong contrarian bet on the recovery of integrated PV module manufacturers with robust overseas channels.
  • Other Notable Adds: EVE Energy (Yiwei Lithium Energy), Tinci Materials, JA Solar, Flat Glass Group, and Trina Solar all saw substantial increases, reinforcing the theme of selective buying in high-quality solar and battery material players.

• Top Sells (Profit Taking & Structural Concerns):

  • New宙邦 (Capchem New Material): Suffered the largest proportional reduction in share count (-59.73%), likely due to concerns over electrolyte pricing pressure and margin compression.
  • Hopewind Electric: Saw a 77.52% drop in share holdings, reflecting skepticism about the near-term profitability of wind power converters amidst intense competition.
  • Samsung Medical (Sanxing Medical): Despite being a medical device company, its inclusion in the sell-off list within the broader context of electric equipment-related holdings (possibly due to classification overlaps or specific fund mandates) highlights a rotation out of high-valuation grid-side equipment names that have already rallied.
  • TGOOD (Teride): A staggering 93.27% reduction in share count, signaling a loss of institutional favor in certain charging infrastructure plays that may face utilization rate headwinds.
  • CATL (Ningde Shidai): While still the #1 holding by market value (RMB 74.17 billion), its share count decreased by 9.47%. This is a critical signal: institutions are not abandoning CATL but are trimming positions to lock in gains and redistribute capital to higher-beta opportunities within the same sector.

3. Institutional Behavior: Aggressive Rebalancing by Top Tier Funds

• Huaxia Fund (China Asset Management): The most aggressive buyer, increasing its Power Equipment share count by 125.64% and market value by 78.18% to RMB 12.75 billion. Their top buys included CATL (though trimmed slightly in some accounts, overall exposure remained high), Sunshine Power, and new positions in New Lei Energy.
• Huitianfu Fund (China Universal): Increased share count by 76.80% and market value by 116.46% to RMB 9.84 billion. They significantly boosted positions in EVE Energy and Sunshine Power, demonstrating a strong conviction in the inverter and mid-stream battery segments.
• Guangfa Fund: Contrarily, Guangfa reduced its share count by 30.98%, although its market value remained relatively stable (RMB 12.04 billion). This suggests a shift towards higher-priced stocks within their portfolio or a reduction in smaller-cap exposure.
• Consensus Among Top 20: The aggregate data shows that the top 20 fund houses increased their total shareholding in the sector by 9.80%, reaching 1.749 billion shares with a market value of RMB 114.33 billion. This net inflow confirms that the sector is currently in an accumulation phase among sophisticated institutional investors.

4. Sub-Sector Rotation: From Pure Battery to Integrated Energy Solutions

• Wind Power Revival: The significant additions to Goldwind, Mingyang Smart Energy (though some trimming occurred, it remains a top holding), and Tian Shun Feng Neng indicate that the wind sector is perceived to have passed its trough. Policy support for offshore wind projects and cost reductions in turbine manufacturing are likely driving this sentiment.
• Solar Module Resilience: Despite global trade tensions, the addition to JA Solar, Trina Solar, and Canadian Solar suggests that institutions believe the worst of the price war is over and that leading exporters with diversified geographic revenue streams will capture disproportionate value as demand stabilizes.
• Energy Storage as the New Growth Pole: The heavy buying in Sunwoda, EVE Energy, and Sunshine Power underscores the "AI + Storage" narrative. As data center energy demands rise and grid instability increases, storage solutions are transitioning from optional add-ons to critical infrastructure, commanding higher valuation multiples.

Detailed Analysis of Industry Trends & Institutional Positioning

1. Macro Context: Why Power Equipment Now?

The third quarter of 2025 marked a pivotal moment for the Power Equipment sector. After a prolonged period of valuation compression due to overcapacity fears in lithium batteries and photovoltaics, several catalysts converged to attract institutional capital back into the sector:

• Export Resilience: As noted in our recent report "25Q3 PV Module Exports Exceed Expectations, Strong Energy Storage Demand" (Nov 19, 2025), Chinese manufacturers have successfully navigated trade barriers by expanding production in Southeast Asia, Europe, and the Middle East. The data shows that export volumes for high-efficiency modules and large-scale storage systems remained robust, defying bearish expectations.
• Policy Tailwinds: Domestic policies supporting the "New Quality Productive Forces" have prioritized grid modernization and renewable energy integration. This has directly benefited companies involved in ultra-high voltage (UHV) transmission, smart grids, and flexible DC transmission technologies.
• Technological Inflection Points: The progress in solid-state battery technology, as highlighted in "Scenario Expansion Opens Incremental Space, Leaders Lead Solid-State Tech Upgrade" (Oct 22, 2025), has reinvigorated interest in battery innovators. Institutions are positioning themselves ahead of the commercialization curve, favoring companies with proven R&D pipelines.

2. Deep Dive: The "Big Buy" List – Understanding the Institutional Thesis

A. Goldwind Science & Technology (002202.SZ): The Wind Power Comeback

• Institutional Move: Share count increased by 0.82 billion shares (+224.07%). Market value of holdings rose from RMB 376 million to RMB 1.78 billion.
• Investment Logic:
  • Offshore Wind Acceleration: Q3 saw the approval of several major offshore wind farms along China’s eastern coast. Goldwind, as the domestic leader in direct-drive permanent magnet generators, is best positioned to capture this high-margin segment.
  • International Expansion: Goldwind’s order book outside China has grown significantly, reducing its dependence on the highly competitive domestic tender market.
  • Valuation Repair: After years of underperformance relative to solar and batteries, wind stocks offered a compelling risk-reward profile. Institutions viewed Goldwind as a "safe" entry point into the renewable infrastructure theme with lower volatility than pure-play solar names.

B. Sunwoda Electronic (300207.SZ): The Storage & Consumer Battery Hybrid

• Institutional Move: Share count increased by 0.72 billion shares (+142.12%). Market value of holdings surged from RMB 1.02 billion to RMB 4.15 billion.
• Investment Logic:
  • Diversified Revenue Streams: Unlike pure EV battery makers, Sunwoda benefits from a steady cash flow from consumer electronics (smartphones, laptops) while enjoying high growth in its Energy Storage System (ESS) division.
  • Fast-Charging Technology: Sunwoda’s leadership in fast-charging battery solutions aligns with the automotive industry’s shift towards 800V platforms.
  • AI Data Center Demand: Our August report "Broad Overseas Space, AI + Storage is New Growth Pole" emphasized the link between AI compute power and energy storage. Sunwoda’s industrial storage solutions are increasingly being adopted for data center backup and peak shaving, creating a new valuation anchor.

C. Canadian Solar/Artes (688472.SH): The Contrarian Solar Bet

• Institutional Move: Share count increased by 0.64 billion shares (+12,397.26%). Market value grew from a negligible RMB 5 million to RMB 868 million.
• Investment Logic:
  • Global Brand & Channel Moat: Canadian Solar possesses one of the most established distribution networks in North America and Europe. In an era of trade fragmentation, having a localized brand and service capability is a significant competitive advantage.
  • Integrated Model Resilience: As an integrated manufacturer (ingot-wafer-cell-module), Artes can better manage margin fluctuations across the supply chain compared to pure-play module assemblers.
  • Bottom-Fishing: The massive percentage increase reflects a move from a near-zero position, indicating that fund managers see the current valuation as deeply discounted relative to the company’s long-term earnings power once the industry capacity clears.

D. EVE Energy (300014.SZ): The Second-Tier Battery Leader

• Institutional Move: Share count increased by 0.53 billion shares (+35.93%). Market value rose from RMB 6.70 billion to RMB 18.08 billion.
• Investment Logic:
  • Large Cylindrical Battery Leadership: EVE is a global leader in 4680-series large cylindrical batteries, a format favored by Tesla and other international OEMs for next-generation EVs.
  • Storage Growth: Similar to Sunwoda, EVE has aggressively expanded its stationary storage business, which now contributes significantly to revenue.
  • Valuation Gap: Compared to CATL, EVE trades at a discount despite showing comparable growth rates in specific segments. Institutions are closing this gap by increasing exposure.

3. Deep Dive: The "Big Sell" List – Understanding the Caution

A. New宙邦 (Capchem New Material) (300037.SZ)

• Institutional Move: Share count decreased by 0.38 billion shares (-59.73%).
• Reasoning: The electrolyte market has faced severe oversupply, leading to plummeting prices and margins. While Capchem is a high-quality company, institutions are wary of the duration of the downcycle. The rotation out of materials into downstream integrators (like batteries and inverters) suggests a preference for companies with stronger pricing power.

B. Hopewind Electric (603063.SH)

• Institutional Move: Share count decreased by 0.37 billion shares (-77.52%).
• Reasoning: Wind power converters are a highly competitive segment with low barriers to entry compared to turbines. Margin pressure from turbine manufacturers squeezing suppliers has likely eroded profitability expectations. Institutions are favoring the turbine OEMs (Goldwind) over the component suppliers in the wind chain.

C. CATL (300750.SZ): The Nuanced Trim

• Institutional Move: Share count decreased by 0.19 billion shares (-9.47%), yet it remains the #1 holding with RMB 74.17 billion in market value.
• Reasoning: This is not a bearish signal but a portfolio optimization move. CATL’s stock price has performed well, and its weight in many funds had become excessive. By trimming shares, fund managers are freeing up capital to buy higher-growth, smaller-cap names (like Goldwind and Sunwoda) while maintaining a core strategic position in the industry leader. It reflects a belief that the "easy money" in CATL has been made, and future alpha lies elsewhere in the sector.

4. Institutional Leaderboard: Who is Buying What?

The behavior of the top 20 fund houses provides a microcosm of the broader institutional sentiment. Below is a detailed analysis of the key players:

Key Observation: The divergence between Huaxia/Huitianfu (aggressive buyers) and Guangfa/Jiashi (more cautious/rebalancing) highlights that while the sector is favored, the strategy varies. Growth-oriented funds are chasing the turnaround stories (Wind/Storage), while value-oriented funds are holding the core leaders (CATL) and trimming excess.

Risks / Headwinds

While the institutional inflow is a positive signal, institutional investors must remain cognizant of the following risks, which are inherent in the Power Equipment sector and the nature of this data:

1. Data Limitations & Lag

• Historical Nature: This report is based on Q3 2025 data, disclosed in November 2025. Fund holdings can change rapidly in response to daily market conditions. The data represents a snapshot in time and may not reflect current positioning.
• Top 10 Bias: The analysis is limited to the top 10 heavy holdings of each fund. It does not capture the full portfolio composition. A fund might have reduced its overall sector exposure while increasing its top 10 concentration, or vice versa.
• Passive vs. Active: This report focuses on actively managed funds. Passive index funds (ETFs) may have different flows, driven by index rebalancing rather than fundamental views.

2. Geopolitical & Trade Risks

• Tariff Escalation: The US and EU continue to scrutinize Chinese renewable energy imports. Any new tariffs on solar modules, wind turbines, or batteries could severely impact the export margins of companies like Canadian Solar, JA Solar, and Goldwind.
• Supply Chain Decoupling: Efforts by Western nations to build local supply chains (e.g., the US Inflation Reduction Act, EU Net Zero Industry Act) could reduce the long-term market share of Chinese manufacturers in key overseas markets.

3. Industry-Specific Risks

• Overcapacity Persistence: While signs of stabilization exist, the solar and battery sectors still face significant overcapacity. Price wars could reignite if demand growth slows, compressing margins for even the leading players.
• Raw Material Volatility: Fluctuations in the prices of lithium, cobalt, nickel, and polysilicon can create earnings volatility for mid-stream manufacturers. While recent trends have shown stabilization, unexpected spikes could hurt profitability.
• Technological Disruption: The rapid pace of innovation (e.g., solid-state batteries, perovskite solar cells) means that today’s leaders could be displaced tomorrow. Companies that fail to keep up with R&D investments risk obsolescence.

4. Macroeconomic Headwinds

• Interest Rates: High interest rates globally can dampen investment in capital-intensive renewable energy projects. If central banks delay rate cuts, the financing cost for wind and solar farms could rise, slowing down installation rates.
• Domestic Economic Slowdown: A slowdown in China’s industrial activity could reduce electricity demand growth, impacting the urgency for grid upgrades and new renewable installations.

Rating / Sector Outlook

Sector Rating: Outperform (Stronger than Market)

We maintain our Outperform rating on the Power Equipment sector. The Q3 2025 institutional holdings data confirms that smart money is rotating back into the sector, driven by a combination of valuation attractiveness, policy support, and fundamental improvements in key sub-segments.

Sub-Sector Outlook:

1. Wind Power: Overweight

   • Driver: Offshore wind project approvals are accelerating. Cost reductions in turbine manufacturing are improving IRRs for developers.
   • Key Beneficiaries: Goldwind Science & Technology, Mingyang Smart Energy, Tian Shun Feng Neng.
   • Logic: The sector has undergone a painful consolidation, leaving stronger players with better pricing power. Institutional buying of Goldwind is a leading indicator of this turnaround.

2. Energy Storage: Overweight

   • Driver: The "AI + Storage" nexus is creating new demand beyond traditional renewable integration. Data centers and grid stability needs are driving robust growth.
   • Key Beneficiaries: Sunshine Power, Sunwoda Electronic, EVE Energy, Narada Power.
   • Logic: Storage is the fastest-growing segment within the power equipment universe. Companies with integrated solutions (hardware + software) and overseas channels will command premium valuations.

3. Photovoltaics (Solar): Neutral to Overweight (Selective)

   • Driver: Export resilience and industry consolidation. The worst of the price war may be behind us.
   • Key Beneficiaries: JA Solar, Trina Solar, Canadian Solar (Artes), Flat Glass Group.
   • Logic: Avoid pure-play upstream material suppliers (polysilicon/wafers) due to lingering overcapacity. Focus on integrated module makers with strong brand recognition and overseas distribution networks.

4. Batteries & Materials: Neutral

   • Driver: Stabilizing lithium prices and steady EV demand. However, growth rates are normalizing.
   • Key Beneficiaries: CATL (Core Holding), EVE Energy (Growth Play), Tinci Materials (Contrarian).
   • Logic: CATL remains a core holding due to its scale and technology moat, but upside may be limited compared to smaller, faster-growing peers. Materials suppliers face margin pressure; selectivity is key.

5. Grid Equipment: Neutral

   • Driver: Grid modernization and UHV transmission projects.
   • Key Beneficiaries: Pinggao Electric, Xuji Electric, Sieyuan Electric.
   • Logic: Steady demand from state grid investments provides a floor, but growth is slower than in wind/storage. Valuations are fair, offering limited alpha unless specific large contracts are announced.

Investment View & Strategic Recommendations

Based on the Q3 2025 institutional holdings analysis and our fundamental research, we propose the following investment strategy for institutional clients:

1. Core-Satellite Approach

• Core Holdings (60% of Sector Allocation): Maintain significant positions in CATL and Sunshine Power. These companies offer stability, scale, and exposure to the broadest range of growth drivers (EVs, Storage, Inverters). While CATL’s share count was trimmed, it remains the anchor of any Power Equipment portfolio. Sunshine Power’s dominance in global inverters and storage systems makes it indispensable.
• Satellite Holdings (40% of Sector Allocation): Allocate to high-conviction turnaround stories and growth outliers identified by institutional inflows:
  • Goldwind Science & Technology: Capitalize on the wind power revival. The massive institutional buy-in suggests a multi-quarter upward re-rating.
  • Sunwoda Electronic: Play the "AI + Storage" and consumer battery recovery theme. Its diversified revenue model offers a hedge against EV slowdowns.
  • EVE Energy: A higher-beta play on large cylindrical batteries and storage. Suitable for investors seeking greater growth potential than CATL can offer.
  • Canadian Solar (Artes) / JA Solar: Contrarian bets on the solar module sector. Focus on companies with strong overseas earnings visibility.

2. Thematic Bets

• "AI + Energy" Theme: Prioritize companies that directly benefit from the energy demands of AI data centers. This includes Sunwoda, EVE Energy, and Sunshine Power. Look for announcements of partnerships with tech giants or data center operators.
• Offshore Wind Revival: Focus on the entire offshore wind supply chain, from turbines (Goldwind, Mingyang) to cables (Orient Cable) and foundations (Tian Shun Feng Neng). The institutional buying in Goldwind is a signal to look at the broader ecosystem.
• Solid-State Battery Innovation: Monitor companies leading in solid-state R&D, such as CATL, EVE Energy, and Ganfeng Lithium. While commercialization is still years away, stock prices will react to milestone announcements.

3. Risk Management

• Monitor Trade Policy: Keep a close watch on US/EU trade policy developments. Any new tariffs should trigger a reassessment of export-heavy names like Canadian Solar and JA Solar.
• Track Inventory Levels: For solar and battery materials, monitor inventory levels and pricing trends. A resurgence in price wars would be a negative signal for material suppliers.
• Diversify Across Sub-Sectors: Do not concentrate solely on batteries. The Q3 data shows a clear rotation into wind and storage. A balanced portfolio across Wind, Solar, Storage, and Grid will reduce single-subsector risk.

4. Actionable Trades

• Buy: Initiate or add to positions in Goldwind Science & Technology, Sunwoda Electronic, and EVE Energy. These stocks show the strongest institutional momentum and fundamental catalysts.
• Hold: Maintain positions in CATL and Sunshine Power. Use any dips to accumulate, given their long-term dominance.
• Reduce/Avoid: Reduce exposure to pure-play electrolyte suppliers (New宙邦) and wind converter makers (Hopewind) until margin pressures ease. Avoid highly leveraged solar developers with weak balance sheets.

Appendix: Detailed Data Tables

Table 1: Top 10 Most Added Stocks by Share Count (Q3 2025)

Table 2: Top 10 Most Reduced Stocks by Share Count (Q3 2025)

(Note: CATL is not in the top 10 most reduced by percentage, but its absolute reduction of 0.19 billion shares is significant given its size.)

Table 3: Top 10 Fund Managers by Power Equipment Holdings (Q3 2025)

Conclusion

The Q3 2025 institutional holdings data for the Power Equipment sector reveals a sophisticated and nuanced shift in capital allocation. Institutions are not simply buying the sector broadly; they are executing a strategic rotation from mature, high-valuation leaders to undervalued turnaround stories and high-growth niches.

The massive inflows into Goldwind and Sunwoda signal a belief in the Wind Power revival and the Energy Storage boom, respectively. The contrarian bets on Canadian Solar and JA Solar suggest that the solar module sector is nearing its bottom. Meanwhile, the trimming of CATL and New宙邦 reflects a desire to lock in profits and avoid areas of persistent margin pressure.

For institutional investors, the path forward is clear: Embrace the diversification. Move beyond a singular focus on batteries and embrace the broader energy transition ecosystem, including wind, storage, and integrated solar solutions. By aligning portfolios with the institutional flows identified in this report, investors can position themselves to capture the alpha generated by this sector’s next phase of growth.

We reaffirm our Outperform rating on the Power Equipment sector and recommend a Core-Satellite strategy centered on CATL and Sunshine Power, with satellite positions in Goldwind, Sunwoda, and EVE Energy.

Disclaimer & Legal Information

Analyst Certification:
The analysts named in this report hereby certify that all of the views expressed in this report accurately reflect our personal views about the subject securities or issuers. We also certify that no part of our compensation was, is, or will be directly or indirectly related to the specific recommendations or views expressed in this report.

Important Disclosures:
* Investment Rating Definitions:
* Outperform: Expected to outperform the relevant market index by >5% over the next 6 months.
* Neutral: Expected to perform in line with the relevant market index (-5% to +5%) over the next 6 months.
* Underperform: Expected to underperform the relevant market index by >5% over the next 6 months.
* Risk Warning: This report is based on historical data from fund quarterly reports. Fund holdings are subject to change and may not reflect current positions. Past performance is not indicative of future results. Investors should conduct their own due diligence and consult with financial advisors before making investment decisions.
* Confidentiality: This report is confidential and intended solely for the use of Aijian Securities' clients. Unauthorized distribution, reproduction, or citation is prohibited.

Contact Information:
Aijian Securities Co., Ltd.
No. 5, Lane 199, Qiantan Avenue, Pudong New Area, Shanghai
Tel: 021-32229888
Email: ajzq@ajzq.com
Website: http://www.ajzq.com

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