LONGSHINE(SZ:300682) Xin Lang Cai Jing·2025-08-23 10:39Core Viewpoint - The company reported mixed financial results for 1H25, with a slight decline in revenue and a significant drop in net profit, but overall performance met market expectations [1] Financial Performance - In 1H25, the company achieved revenue of 1.54 billion yuan, a year-on-year decrease of 0.39% - The net profit attributable to shareholders was 28.64 million yuan, down 23.0% year-on-year - For 2Q25, revenue was 876 million yuan, a decline of 0.6% year-on-year, while net profit was 25.27 million yuan, down 55.2% year-on-year [1] Development Trends - The energy digitalization business showed steady growth, with revenue of 472 million yuan in 1H25, an increase of 0.73% year-on-year - The company is enhancing AI technology applications in the power grid, focusing on new power system construction and renewable energy integration, leading to positive progress in various AI pilot projects [2] AI and Energy Internet Growth - The energy internet business generated revenue of 864 million yuan in 1H25, reflecting a year-on-year increase of 10.46%, with a gross margin improvement of 3.32 percentage points to 54.44% - The company’s new electric platform recorded nearly 3 billion kWh of charging volume in 1H25, indicating a positive adjustment in business structure and service ecosystem - In the virtual power plant sector, the company connected nearly 50 GW of distributed photovoltaics and engaged in power market transactions across over 10 provinces, with a total trading volume of nearly 2 billion kWh, a year-on-year increase of approximately 2.5 times [3] RWA Development Opportunities - The company partnered with Ant Group to complete the first nationwide RWA based on renewable energy assets in Hong Kong, using charging stations as anchor assets - This innovative financing method is expected to benefit numerous quality renewable energy assets and facilitate a positive cycle of financing, operation, and revenue for small and medium operators [4] Profit Forecast and Valuation - Due to the accelerated construction of the electricity market, the company raised its profit forecasts for 2025 and 2026 by 26.1% and 30.9% to 427 million yuan and 576 million yuan, respectively - The current stock price corresponds to a P/E ratio of 58.2x for 2025 and 43.1x for 2026 - The target price was increased by 70.5% to 24.9 yuan, implying an upward potential of 8.4% based on a 46.7x P/E for 2026 [5]