Summary of the Conference Call for HeMai Co., Ltd. Company Overview - **Company Name**: HeMai Co., Ltd. (禾迈股份) - **Industry**: Power production and supply - **Headquarters**: Hangzhou, Zhejiang, China - **Founded**: 2012 - **IPO**: Listed on the Shanghai Stock Exchange in 2021 - **Core Products**: Microinverters and electrical equipment - **Market Position**: Among the top three manufacturers in the global microinverter industry with an 8% market share in 2021 [10][11] Key Financial Performance - **Q3 2025 Performance**: - Net loss of 59 million RMB for the first nine months of 2025, compared to a net profit of 160 million RMB in H1 2024 and 246 million RMB in the first nine months of 2024 - Q3 2025 net profit turned negative with a loss of 75 million RMB, underperforming market expectations [1][2] - **Revenue Breakdown**: - Microinverters: Revenue decreased by 40% YoY to 600 million RMB, with sales volume down 30% to 540,000 units; gross margin maintained at 47-48% due to cost control and product upgrades [2] - Commercial and large-scale energy storage: Contributed 200-300 million RMB in revenue, but over 100 million RMB in projects delayed to Q4 2025 due to battery supply constraints; gross margin below 10% [2] - Household energy storage: Revenue of 100 million RMB; distributed photovoltaic projects generated 300 million RMB [2] Future Outlook - **FY25 Guidance**: - Microinverter revenue expected to reach 800 million RMB, accounting for nearly 50% of total revenue - Commercial and large-scale energy storage projected to contribute 500 million RMB, with household storage at 150 million RMB [3] - **FY26 Guidance**: - Anticipated doubling of commercial and large-scale energy storage revenue to over 1 billion RMB, driven by a 400 million RMB contract order expected to be delivered in Q1 2026 - Household storage revenue could see 3-5 times growth [3] - **Management Goals**: - Increase overseas revenue share of commercial and large-scale energy storage from under 20% in 2025 to 30% by 2026, focusing on Europe and Latin America - Household storage primarily targeting Europe and Asia-Pacific markets [3] Market Reaction - **Investor Sentiment**: Anticipated negative reaction from investors due to weak performance [4] Stock Information - **Current Stock Price**: 108.71 RMB (as of October 29, 2025) - **12-Month Rating**: Buy - **12-Month Target Price**: 127.00 RMB - **Market Capitalization**: 13.5 billion RMB (approximately 1.90 billion USD) - **52-Week Price Range**: 150.57 - 93.60 RMB [5][21] Important Metrics - **Projected Revenue Growth**: - Revenue forecast for 2025: 2.917 billion RMB - Expected net profit for 2025: 296 million RMB - Projected earnings per share (EPS) for 2025: 2.39 RMB [7] - **Valuation Ratios**: - Price-to-earnings (P/E) ratio for 2025: 45.6x - Price-to-book (P/B) ratio for 2025: 2.2x [7] Risks and Challenges - **Industry Risks**: - Lower-than-expected demand for distributed photovoltaics and energy storage - Delays in supportive policy implementation - Slower-than-expected penetration of microinverters [11] - **Company-Specific Risks**: - Slower market share expansion - Delays in product upgrades - Slow expansion of distribution networks [11] Analyst Insights - **Analyst Ratings**: The company is rated as a "Buy" with a target price reflecting a potential upside of 16.8% [9][17] - **Expected Returns**: Projected total return of 17.7%, including a dividend yield of 0.9% [9] This summary encapsulates the key points from the conference call regarding HeMai Co., Ltd., highlighting its financial performance, future outlook, market sentiment, and associated risks.

Core Viewpoint - HeMai Co., Ltd. is a leading global micro-inverter company with strong technical capabilities and R&D strength, but its financial performance is currently under pressure compared to industry peers [1][3]. Financial Performance - In Q3 2025, HeMai's revenue was 1.323 billion yuan, ranking 8th in the industry, significantly lower than the top competitor, Sungrow Power, which reported 66.402 billion yuan [1]. - The company's net profit for the same period was -59.84 million yuan, placing it last in the industry, far behind Sungrow Power's 11.954 billion yuan [1]. - The revenue composition includes micro-inverters and monitoring equipment at 444.6 million yuan (44.39%), photovoltaic power generation systems at 351 million yuan (34.92%), and energy storage systems at 188 million yuan (18.70%) [1]. Financial Ratios - As of Q3 2025, HeMai's debt-to-asset ratio was 24.92%, lower than the industry average of 47.62% [2]. - The gross profit margin was 26.97%, below the industry average of 30.29% [2]. Management Compensation - The chairman, Shao Jianxiong, received a salary of 84,500 yuan in 2024, a decrease of 169,600 yuan from 2023 [2]. - The general manager, Yang Bo, earned 708,800 yuan in 2024, slightly down from 718,100 yuan in 2023 [2]. Shareholder Information - As of September 30, 2025, the number of A-share shareholders increased by 3.82% to 10,200 [2]. - The average number of circulating A-shares held per shareholder decreased by 3.68% to 12,100 [2]. Market Position and Outlook - According to Everbright Securities, HeMai's micro-inverter business is under short-term pressure, but it maintains a leading position with a 22% global market share in micro-inverter shipments outside the U.S. [3]. - The company is expanding its energy storage product lineup and has increased R&D spending by 36.61% year-on-year in H1 2025 [3]. - Longjiang Securities noted a slight increase in micro-inverter sales in Q2 2025, with a 37% year-on-year growth in energy storage system revenue [3].

Summary of the Conference Call for HeMai Co., Ltd. Industry Overview - The company operates in the photovoltaic and energy storage industry, facing challenges due to a downturn in the solar market and increased competition [2][5][30]. Key Financial Metrics - Revenue for the first three quarters reached 1.3 billion CNY, with equipment sales below 1 billion CNY [2][5]. - Micro-inverter revenue declined approximately 30% year-on-year, with expectations of a similar decline for the full year [2][5]. - Gross margin maintained at 47%-48% despite revenue challenges [2][5]. - The company reported a net loss of 75 million CNY in Q3, with a total net loss of 59 million CNY for the year-to-date [4]. Business Segments - **Energy Storage Business**: - Revenue from household energy storage approached 100 million CNY in the first three quarters, expected to reach 150 million CNY for the full year [2][6]. - Commercial and large-scale storage revenue was around 200 million CNY, with expectations of at least 300 million CNY in Q4 [2][6]. - **Micro-inverter Business**: - Expected revenue of approximately 800 million CNY for the year, down 30%-40% year-on-year [8]. Research and Development - R&D investment reached 260 million CNY in the first nine months, with sales expenses increasing by 30%-50% [7]. - The company aims to expand market share in the power electronics sector by 2026 [7]. Market Strategy - Plans to increase overseas market share for large-scale storage to 30%-40% next year, focusing on Europe and Latin America [11][21]. - The company believes in a dual approach of developing both micro-inverters and energy storage systems to address market competition [3][17]. Future Outlook - The company anticipates significant growth in energy storage, projecting a 3-5 times increase in household storage and a 5 times increase in commercial storage revenue next year [8][20]. - Overall revenue for 2026 is expected to exceed 2 billion CNY, driven by energy storage growth [16][29]. Regional Market Insights - The European market is seen as a key area for growth, with a focus on energy storage due to its mature market conditions [21][25]. - The company is also exploring opportunities in the Asia-Pacific region, particularly in countries like Australia and Japan [24]. Challenges and Strategic Response - The main challenge is building capabilities to achieve performance breakthroughs in a competitive landscape [30]. - The company is committed to maintaining strategic focus and investing in R&D to enhance its market position [30]. Conclusion - HeMai Co., Ltd. is navigating a challenging market environment with a strategic focus on energy storage and innovation, aiming for substantial growth in the coming years while addressing competitive pressures and market dynamics [2][30].

Core Insights - HeMai Co., Ltd. (688032.SH) released its Q3 2025 financial report on October 30, 2025, indicating significant institutional investor interest in the company [1] - As of October 29, 2025, six institutional investors held a total of 73.1184 million shares, representing 58.93% of HeMai's total share capital, although this marks a decrease of 1.92 percentage points from the previous quarter [1] Institutional Holdings - The institutional investors include Hangkai Holdings Group Co., Ltd., Hainan Xinhai Investment Partnership (Limited Partnership), Zhejiang University Jiuzhi (Hangzhou) Investment Management Co., Ltd., CITIC Securities Co., Ltd., Zhejiang University Youchuang (Hangzhou) Private Fund Management Co., Ltd., and the Fortune Shanghai Stock Exchange Science and Technology Innovation Board Comprehensive Price ETF Link A [1] - The total proportion of shares held by institutional investors decreased by 1.92 percentage points compared to the previous quarter [1] Public Fund Disclosures - In this reporting period, 161 public funds were disclosed, including Southern CSI 500 ETF, Photovoltaic ETF, Tianhong CSI Photovoltaic A, Bosera Science and Technology Innovation 100 ETF, and Agricultural Bank of China New Energy Mixed A [1]

Summary of Stock Buyback Activities on October 30 Core Insights - On October 30, a total of 26 companies announced 27 stock buyback-related updates, indicating a significant activity in the market [1] Group 1: New Buyback Proposals - 16 companies disclosed stock buyback proposals for the first time, with 6 companies proposing buyback amounts exceeding 10 million [1] - The highest proposed buyback amounts were from HeMai Co., Ltd. (up to 200 million), Sanli Shi (60 million), and Minsheng Health (50.544 million) [1] Group 2: Approved Buyback Plans - 2 companies had their buyback plans approved by shareholders, with the highest proposed amounts from Dayu Biological (up to 5.596 million) and New Weiling (20,200) [1] Group 3: Buyback Implementation Progress - 2 companies reported on the implementation of their buyback plans, with the highest amounts from Guyue Longshan (186 million) and Jiayi Co. (99.0246 million) [1] Group 4: Completed Buybacks - 5 companies completed buybacks exceeding 10 million, with the highest completed amounts from Huafa Co. (310 million), Shenzhou Digital (203 million), and Ruoyu Chen (200 million) [1] - As of October 30, a total of 1711 buyback plans have been completed this year, involving 1281 companies, with 330 companies completing buybacks exceeding 100 million [1] - The leading companies in completed buyback amounts include Kweichow Moutai (6 billion), Muyuan Foods (3 billion), and COSCO Shipping Holdings (2.146 billion) [1]

Group 1 - Linyi Intelligent Manufacturing plans to issue H-shares and list on the Hong Kong Stock Exchange [1] - Jindi Co., Ltd. intends to invest 288 million yuan in a digital transformation project for high-end precision bearing retainers [1] - Tengda Construction has won contracts totaling 1.231 billion yuan in the first three quarters [1] Group 2 - Huali Co., Ltd. plans to acquire 51% of Zhongke Huilian's shares to accelerate its digital transformation [1] - Hemai Co., Ltd. intends to repurchase shares worth 100 million to 200 million yuan [1] - Zhongwei Company reported a net profit of 1.211 billion yuan in the first three quarters, a year-on-year increase of 32.66% [1] Group 3 - Greenfield Machinery's shareholder plans to reduce holdings by no more than 3% [1] - Longyuan Power plans to raise no more than 5 billion yuan through a private placement for wind power projects [1][2] - Sains plans to issue convertible bonds to raise no more than 565 million yuan for a project to produce 100,000 tons per year of efficient flotation agents [2]

Core Viewpoint - The company, HeMai Co., Ltd. (688032.SH), plans to repurchase a portion of its issued ordinary shares through a centralized bidding process on the Shanghai Stock Exchange, with a total repurchase fund amounting to no less than RMB 100 million and no more than RMB 200 million, at a price not exceeding RMB 170 per share [1] Summary by Category - **Repurchase Plan** - The company intends to repurchase its ordinary shares through the Shanghai Stock Exchange [1] - The total amount allocated for the repurchase is set between RMB 100 million and RMB 200 million [1] - The maximum price for the repurchased shares is capped at RMB 170 per share [1]

Core Viewpoint - HeMai Co., Ltd. (688032.SH) reported a revenue of 1.323 billion yuan for the first three quarters of 2025, reflecting a year-on-year growth of 4.57% [1] Financial Performance - The net profit attributable to shareholders of the parent company was -59.1154 million yuan, compared to a net profit of 246 million yuan in the same period last year [1] - The basic earnings per share were -0.48 yuan [1]

Group 1 - The company HeMai Co., Ltd. (688032) announced a share repurchase plan, intending to buy back shares worth between 100 million to 200 million yuan [1] - The maximum repurchase price is set at 170 yuan per share [1]

Group 1 - The company plans to repurchase shares through centralized bidding, with a total amount between 100 million and 200 million yuan, and a maximum repurchase price of 170.00 yuan per share, which is 56.38% higher than the current price of 108.71 yuan [1] - The company has seen a cumulative stock price decline of 0.39% this year [1] - The repurchased shares may be canceled or used for employee stock ownership plans or equity incentive plans [1] Group 2 - As of September 30, the number of shareholders increased by 3.82% to 10,200, while the average circulating shares per person decreased by 3.68% to 12,134 shares [2] - For the period from January to September 2025, the company achieved operating revenue of 1.323 billion yuan, a year-on-year increase of 4.57%, but reported a net profit attributable to shareholders of -59.1154 million yuan, a decrease of 124.07% year-on-year [2] Group 3 - The company has distributed a total of 1.306 billion yuan in dividends since its A-share listing, with 1.186 billion yuan distributed over the past three years [3]