Core Viewpoint - A new photovoltaic industry chain company, Youli Intelligent Equipment Co., Ltd., is preparing for an IPO on the Beijing Stock Exchange, with a focus on the photovoltaic bracket sector and a notable growth in revenue and net profit since its establishment in 2017 [1][2]. Group 1: Business Performance - Youli Intelligent specializes in the R&D, production, and sales of core components for photovoltaic brackets, with key products including torque tubes (TTU), bearing components (BHA), installation structures (URA), and rails (RAIL) [2]. - The company's revenue and net profit have shown significant growth, with revenues of 433 million yuan, 658 million yuan, and 729 million yuan from 2022 to 2024, and net profits of 42.19 million yuan, 78.17 million yuan, and 90.05 million yuan for the same period [2]. - However, growth rates for 2024 are expected to slow, with revenue and net profit growth rates of 10.84% and 15.19%, compared to 51.96% and 85.27% in 2023 [2]. Group 2: Market Dynamics - The photovoltaic industry is experiencing a trend of cost reduction and efficiency improvement, leading to increased competition and pressure on profit margins within the photovoltaic bracket sector [3]. - The company's order backlog growth has also slowed, with amounts of 134 million yuan, 298 million yuan, and 299 million yuan reported at the end of each period [3]. Group 3: Customer Concentration - Youli Intelligent's overseas market accounts for a significant portion of its revenue, with foreign sales constituting 88.19%, 73.06%, and 78.72% of total revenue from 2022 to 2024 [4]. - The company has a high customer concentration, with sales to its top five customers accounting for over 90% of total revenue during the reporting periods, indicating a heavy reliance on a few key clients [4]. - The first major customer, NEXTracker, has shown a declining gross profit contribution from 97.29% to 82.58% over the years, raising concerns about the sustainability of this reliance [4][5]. Group 4: R&D and Investment - The company has a lower R&D expense ratio compared to peers, with R&D expenses of 5.07 million yuan, 5.83 million yuan, and 12.13 million yuan from 2022 to 2024, and corresponding R&D expense ratios of 1.17%, 0.89%, and 1.66% [6][7]. - The company plans to raise approximately 270 million yuan for capacity expansion and R&D investments, with specific projects including the construction of a core component production base and a research center [8].

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. I am not a registered investment, tax or legal advisor or broker and therefore cannot promise or guar ...

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