COSHIP(002052) Zheng Quan Zhi Xing·2025-06-15 08:12Core Viewpoint - Shenzhen Tongzhou Electronics Co., Ltd. reported significant growth in its high-power power supply business, with a net profit of 0.70 billion yuan, a year-on-year increase of 193.13%, and a net cash flow from operating activities of 3.37 billion yuan, up 1,828.48% [1][2]. Business Model and Market Analysis - The high-power power supply products are mainly used in computing servers, categorized into four types: server power supplies, energy storage and new energy power supplies, industrial and special power supplies, and automotive and communication power supplies [2][3]. - The company’s high-power power supply products utilize advanced technologies such as high-efficiency circuit topology design and digital control, achieving a power density of 104.1W/inch³ and an efficiency of up to 96.8% [3][4]. - The company has invested approximately 1.31 billion yuan in the high-power power supply business, focusing on production costs, including raw material purchases and processing fees [5][6]. Customer and Supplier Relationships - The top five customers are not related parties, and the company has established a direct sales model where customers place orders through email or their supplier management systems [7][8]. - The main suppliers include Shenzhen Huayouxintai Technology Co., Ltd., which has a close relationship with the company’s shareholders, and other suppliers providing essential components like chips and transformers [6][8]. Financial Performance - The high-power power supply business generated revenue of 4.74 billion yuan, accounting for 79.15% of total revenue, with a gross margin of 39% [1][15]. - The company’s gross margin is competitive compared to peers, with a gross margin of 39%, which is comparable to Newray and higher than Magtech and Oulu [15][16]. Market Growth and Trends - The power supply industry in China is experiencing rapid growth, with the market size expected to reach 542.1 billion yuan by 2025, driven by developments in data centers, medical devices, high-end equipment manufacturing, and new energy applications [8][9]. - The demand for high-power power supplies is primarily driven by computing servers, new energy vehicles, and renewable energy systems, with AI server shipments expected to grow significantly [9][10]. Operational Stability and Sustainability - The company has established a stable business model for its high-power power supply segment, with a complete production process and the ability to independently calculate costs and revenues [16][18]. - The company has developed a robust supply chain and customer base, ensuring that it does not rely heavily on any single customer or supplier, thus enhancing the sustainability of its operations [19][20].