Investment Rating - The investment rating for the company is "Buy" with an expected relative increase of over 15% in the next 6-12 months compared to the relevant market index [34][36]. Core Viewpoints - The company, Developer Technology, specializes in the research, production, and sales of smart metering terminals and energy management systems, with a strong focus on international markets, particularly in Europe [6][22]. - The company has shown significant revenue growth, with projected revenues of CNY 17.91 billion, CNY 25.50 billion, and CNY 29.33 billion for the years 2022, 2023, and 2024 respectively, reflecting year-on-year growth rates of 21.42%, 42.39%, and 15.02% [7][11]. - The company is backed by China Electronics, which holds nearly 70% of its shares, and has established a strong reputation in the European market, achieving a market share increase from 9.46% in 2021 to 12.14% in 2023 [22][23]. Summary by Sections Basic Financial Status - The company achieved revenues of CNY 17.91 billion in 2022, CNY 25.50 billion in 2023, and is projected to reach CNY 29.33 billion in 2024, with corresponding net profits of CNY 1.83 billion, CNY 4.86 billion, and CNY 5.89 billion [7][11][24]. Industry Situation - The smart meter industry is experiencing growth driven by increasing global electricity demand and energy system transformations, with the global smart metering market expected to grow from USD 23.17 billion in 2023 to USD 36.39 billion by 2028, at a CAGR of 9.5% [13][19]. Company Highlights - Developer Technology is one of the earliest companies to engage in smart meter development and deployment, with a strong foothold in the European market and a history of successful projects since 1998 [22][23]. - The company is actively expanding into high-potential markets in the Middle East and Southeast Asia, with significant contracts and projects underway [23][24]. Fundraising Project Investments - The company plans to invest in three main projects through its IPO, including the construction of an automated production line for smart metering terminals, a research and development center, and a global sales and service operation center [24][26]. Peer Company Comparison - Compared to peer companies in the industry, Developer Technology's revenue and gross margin are below the average, with peer companies showing an average revenue of CNY 3.35 billion and an average PE ratio of 17.80x for 2023 [27][29].

Investment Rating - The report suggests to pay attention to the company due to its increasing influence in overseas markets and the growing demand for smart metering products driven by the replacement cycle [4]. Core Viewpoints - The company, Kaifa Technology, is a leader in smart energy metering, focusing on intelligent and digital energy management solutions, with a strong presence in overseas markets [1][8]. - The global smart metering market is expected to reach USD 36.39 billion by 2028, with a compound annual growth rate (CAGR) of 9.5%, indicating significant growth potential for the company [2]. - The company has a strong market position in Europe, with its market share increasing from 9.46% in 2021 to 12.14% in 2023 [3]. Company Overview - Kaifa Technology specializes in smart metering solutions, including smart electricity, water, and gas meters, as well as AMI system software [1][8]. - The company was established in 2016 and has a history of over 20 years in the smart metering industry, having participated in significant projects in Europe [9]. - The company’s revenue is primarily derived from overseas sales, with 92.15% of its revenue coming from international markets in the first half of 2024 [32]. Financial Performance - The company forecasts revenue and net profit for 2024 to be approximately CNY 29.33 billion (+15.02%) and CNY 5.88 billion (+20.64%), respectively [1]. - In the first half of 2024, the company achieved revenue of CNY 12.98 billion, with a gross margin of 37.35% [39]. - The company’s main products, smart meters and their core units, accounted for 98.52% of its revenue in the first half of 2024 [39]. Market Dynamics - The global trend towards building smart energy systems and new power systems is driving demand for smart metering infrastructure [2]. - The company is well-positioned to benefit from the ongoing replacement cycle of smart meters, particularly in regions where demand is strong [2][3]. - The company plans to invest CNY 1.017 billion in projects that are expected to enhance its performance [3]. Competitive Positioning - The company’s P/E ratio for 2024 is estimated at 14.27X, compared to the industry average of 18.22X for 2023, indicating potential undervaluation [4]. - The company has established stable relationships with major power companies and contractors, which supports its revenue stability [28].