1. Reported Industry Investment Rating - No information provided 2. Core Viewpoints of the Report - Core Energy Convertible Bonds are low - risk and high - value investment targets due to the issuer's stable power generation income, high gross profit margin, strong cash flow, excellent asset quality, and low absolute price of the bonds [1][3][4] 3. Summary by Relevant Catalogs 3.1 Information on Core Energy Convertible Bonds - Core Energy Convertible Bonds (113679.SH) are rated AA - with a bond balance of 880 million yuan, accounting for 99.99% of the total issuance. The remaining term is 3.90 years. On December 3rd, the closing price was 122.22 yuan, the conversion premium rate was 69.01%, and the YTM was - 0.59% [1] 3.2 Information on the Underlying Stock - The underlying stock is Core Energy Technology (603105.SH), which mainly focuses on the investment and operation of self - owned distributed photovoltaic power stations, covering PV EPC, energy storage, and charging piles. In 2025.1 - 3Q, its revenue was 586 million yuan, a year - on - year increase of 3.60%; the net profit attributable to the parent was 186 million yuan, a year - on - year increase of 0.07%. The latest total market value is 4.61 billion yuan, and the PE TTM is 23.6x [2] 3.3 Key Highlights of Core Energy Convertible Bonds - Focus on commercial and industrial distributed photovoltaic power stations, with stable power generation income and a leading gross profit margin. In H125, the power generation income accounted for 87.41%, and the gross profit margin in 2025.1 - 3Q was 60.17%, higher than the industry average and continuously increasing for five years. The total installed capacity of grid - connected self - owned photovoltaic power stations exceeds 962MW [3] - Coordinate the layout of energy storage and charging pile businesses to build an "optical - storage - charging" integrated business model. In 2025, multiple demonstration projects for energy storage - related business have been launched, and the investment and operation of charging piles are coordinated with photovoltaic power stations [4] - Strong operating cash flow and excellent asset quality. In Q325, the net cash flow from operating activities was 185 million yuan, a year - on - year increase of 78.3%. In 1 - 3Q, the revenue and net profit attributable to the parent were basically the same as the previous year, with an annualized ROE of 11.11%. At the end of Q325, the asset - liability ratio was 50.98%, and the monetary fund balance was 491 million yuan [4] - The convertible bond has a relatively low absolute price. Although the conversion premium rate is high and the short - term willingness to lower the conversion price is low, the market price of around 120 yuan is one of the lowest in the market. Coupled with the fact that the PE valuation of the underlying stock is at a historical low, it is a good low - risk investment target [4] 3.4 Reasonable Valuation of Core Energy Convertible Bonds - Based on the Shanxi Securities Convertible Bond Valuation Model, if the stock price remains unchanged and without considering forced redemptions and downward revisions, the reasonable valuation of Core Energy Convertible Bonds is between 123 - 129 yuan [5]