Core Viewpoint - The report from Tianfeng Securities highlights the strong growth potential of Fute Technology (301607.SZ) due to its high-quality customer structure and clear benefits from European trends, along with opportunities for valuation enhancement from potential new businesses [1] Company Overview - Fute Technology, established in 2011, started with electric grid charging and swapping products and has gradually focused on high-voltage power systems for vehicles, expanding into non-vehicle areas to form a complete product line [1] - The company successfully listed on the Shenzhen Stock Exchange's ChiNext in September 2024, marking a new stage in its development [1] Market Position and Growth - The report indicates that China's key components for new energy vehicles (NEVs) have gained strong international competitiveness, with significant achievements in overseas market expansion [2] - Fute Technology, as a leading supplier of high-voltage power systems in China, shows strong development potential, with overseas business revenue expected to rise from approximately 6.8% in 2024 to over 17% in the first half of 2025 [2] International Expansion - To meet overseas customer delivery and service demands, Fute Technology has established a production base in Thailand, which will enhance its capacity to fulfill orders from clients like Renault and Stellantis [3] - The company aims to optimize its global supply chain through local procurement, enhancing supply chain stability and supporting ongoing market share growth [3] Financial Performance - In the first half of 2025, Fute Technology achieved total revenue of 1.474 billion yuan, a year-on-year increase of 122.64%, with a profit of 67 million yuan, reflecting a growth of 14.71% [3] Customer Relationships - Fute Technology has established stable partnerships with well-known automotive companies, including GAC Group, NIO, Xpeng Motors, Xiaomi Motors, Renault, and Stellantis, demonstrating strong customer expansion capabilities [3] - The company is also reducing reliance on single customers by securing projects with traditional automakers like BYD and Changan [4] Industry Trends - The onboard power supply industry is evolving towards integration, high voltage, and diversified functionality, with Fute Technology leading in these areas [5] - The company has developed a three-in-one system product that integrates onboard chargers, DC/DC converters, and power distribution units, significantly reducing size, weight, and cost [5] Technological Advancements - Fute Technology is leveraging third-generation semiconductor materials like silicon carbide (SiC) to enhance power density and support high-voltage fast charging scenarios [5] - The growing popularity of bidirectional charging technologies (such as V2L and V2G) is expanding the functionality of onboard power supplies, allowing NEVs to serve as mobile energy storage [6] Strategic Positioning - Fute Technology is strategically positioned in the core track of NEV development, entering a high-growth phase due to its comprehensive advantages in technology, customer relationships, and global layout [6]

Core Insights - The concept of Vehicle-to-Grid (V2G) is gaining traction as electric vehicle owners can potentially earn money by selling electricity back to the grid, marking a shift in energy and transportation integration [2][3] - V2G technology allows electric vehicles to act as mobile energy storage units, providing power to the grid during peak demand and charging during off-peak times, thus enhancing grid stability and efficiency [2][3][5] V2G Development and Implementation - V2G has transitioned from experimental stages to practical applications, with pilot projects launched in several Chinese cities starting in 2023, and a formal announcement of large-scale applications in 2024 [3][6] - By 2050, it is projected that China will have over 350 million electric vehicles, with a total storage capacity of 240 billion kilowatt-hours, fundamentally changing the operation of the power system [3][6] Economic Model and Benefits - The V2G model operates on a dual charging and discharging mechanism, allowing vehicle owners to charge during low-cost periods and discharge during high-cost periods, thus capitalizing on price differentials [5][6] - For instance, in a Beijing pilot, vehicle owners could earn over 1,700 yuan annually by participating in V2G, with even higher potential earnings in other regions like Wuhan [6][7] Strategic Importance - V2G addresses the "double peak" challenge in China's power system, providing a flexible and cost-effective solution for peak load management, with estimates suggesting it could contribute 200 million kilowatts of peak shaving capacity by 2030 [7][9] - The technology also enhances the utilization of renewable energy sources by absorbing excess green electricity and releasing it during periods of low generation, supporting carbon neutrality goals [7][9] Future Outlook and Challenges - Despite its potential, V2G faces challenges such as high costs of V2G charging stations, the need for vehicles to support bidirectional charging, and concerns over battery lifespan due to frequent charging cycles [10][11] - Industry forecasts suggest that by 2028, all new electric vehicles sold in China will be equipped with V2G capabilities, with over 10 million vehicles participating in discharging by 2030, necessitating collaboration across policy, industry, and technology sectors [11][12]