Core Viewpoint - The company, United Power, is set to debut on the stock market with strong fundamentals and high growth potential in the electric vehicle power system sector, despite the pressure from high issuance price and fundraising amount [1][4]. Company Overview - United Power is a leading provider of power systems for electric vehicles, focusing on core components such as electric drive systems and power supply systems [1][2]. - The company has been deeply involved in the electric vehicle power system industry for nearly 10 years and operates as the sole entity within the industrial automation leader, Huichuan Technology [1][2]. - It has provided power system solutions for over 40 automotive manufacturers, including major brands like Li Auto, GAC Group, Xiaomi Auto, Volvo, and Volkswagen, with a projected product shipment of over 4.5 million units in 2024 [1][2]. Industry Insights - The electric vehicle power system industry is crucial as it serves a similar function to the engine and transmission in traditional fuel vehicles, converting electrical energy into mechanical energy [2]. - The market for electric vehicle power systems has been experiencing rapid growth, with annual growth rates exceeding 40% since 2020 [2]. - The value of the power system per vehicle typically exceeds 8,000 yuan, making it one of the highest-value components in electric vehicles [2]. Financial Performance - United Power's projected revenues for 2022, 2023, and 2024 are 5.03 billion yuan, 9.37 billion yuan, and 16.18 billion yuan, respectively, with year-on-year growth rates of 73.2%, 86.3%, and 72.7% [3]. - The company anticipates a net profit of -179 million yuan in 2022, turning to 186 million yuan in 2023 and 936 million yuan in 2024, with growth rates of 28.3%, 203.9%, and 403.6% [3]. - The IPO raised 3.6 billion yuan, with funds allocated for three projects and working capital [3]. Market Expectations - Recent trends indicate that new stocks in the A-share market have seen an average first-day increase of 296%, with a median increase of 38% [4]. - United Power's first-day performance is expected to align with these trends, with a potential increase range of 187% to 296% based on recent averages [4]. - The company's dynamic price-to-earnings ratio is 25, significantly lower than the average of comparable companies at 86, suggesting a valuation advantage [5]. - The issuance price of 12.48 yuan per share is relatively low within the market context, although the high fundraising amount may exert pressure on its initial performance [5].