Investment Rating - The investment rating for the company is not explicitly stated in the provided content, but the AHP score is 1.66, placing it in the 22.3% percentile, indicating a mid-to-lower tier position in the non-innovation system AHP model [3][9]. Core Insights - The company focuses on digitalization in the power energy sector, with three main business areas: digital grid, enterprise digitalization, and digital infrastructure. It has established partnerships with leading clients across various industries, including state-owned enterprises [3][10]. - The digital energy market in China is expected to reach a scale of 370 billion yuan by 2025, growing at a rate of 17.46% year-on-year, driven by increasing power demand and energy structure transformation [3][15]. - The company has developed advanced technologies, including proprietary AI-driven systems and specialized hardware, positioning itself to benefit from the ongoing transformation in the energy sector [3][16]. Summary by Sections 1. AHP Score and Expected Allocation Ratios - The AHP score for the company is 1.66, with expected allocation ratios for offline investors being 0.0227% for Class A and 0.0200% for Class B under a neutral scenario [9][10]. 2. Fundamental Highlights and Features - The company operates in three main business areas: digital grid, enterprise digitalization, and digital infrastructure, with a comprehensive product matrix covering key areas of the power system [10][11]. - It has established collaborations with major clients, including State Grid and China Three Gorges Corporation, and is expanding into other sectors such as transportation and urban construction [11][12]. 3. Comparable Company Financial Metrics - The company’s revenue for 2022, 2023, and 2024 is projected to be 56.86 billion yuan, 42.34 billion yuan, and 60.90 billion yuan, respectively, with net profits of 6.53 billion yuan, 3.77 billion yuan, and 5.70 billion yuan [19][20]. - The gross profit margins for the same years are 30.59%, 32.65%, and 30.06%, indicating a competitive position within its peer group [21][22]. 4. Fundraising Projects and Development Vision - The company plans to raise funds for six major projects, including the development of an intelligent digital twin platform and an advanced AI platform for the power industry, with expected internal rates of return ranging from 18.58% to 21.16% [32][34].

Investment Rating - The report assigns a rating of "Neutral" to the company, with an AHP score of 1.66, placing it in the 22.3% percentile of the non-technology innovation system [3][7]. Core Insights - The company, South Network Digital, focuses on digitalization in the power energy sector, offering a comprehensive range of services including digital grid, enterprise digitalization, and digital infrastructure [3][9]. - The digital energy market in China is projected to reach a scale of 370 billion yuan by 2025, with a year-on-year growth of 17.46%, indicating significant market opportunities for the company [13][14]. - The company has established partnerships with major state-owned enterprises and industry leaders, enhancing its market position and growth potential [9][15]. Summary by Sections AHP Score and Expected Allocation Ratio - The AHP score for South Network Digital, after excluding liquidity premium factors, is 1.66, indicating a mid-to-low tier position in the market [3][7]. - The expected allocation ratios for offline investors A and B are 0.0227% and 0.0200%, respectively, under a neutral scenario [8]. Fundamental Highlights and Features - South Network Digital operates in three main business areas: digital grid, enterprise digitalization, and digital infrastructure, leveraging AI and cloud technologies [9][10]. - The company has developed key technologies such as the "Fuxi" power control chip and the world's first micro intelligent current sensor, positioning itself as a leader in the digital transformation of the energy sector [14][15]. Financial Comparison with Peers - The company's revenue for 2022, 2023, and 2024 is projected to be 56.86 billion, 42.34 billion, and 60.90 billion yuan, respectively, with net profits of 6.53 billion, 3.77 billion, and 5.70 billion yuan [16][19]. - The gross profit margins for the same years are 30.59%, 32.65%, and 30.06%, placing the company in the middle tier compared to its peers [19][21]. - The operating cash flow for 2022, 2023, and 2024 is expected to be 5.13 billion, 24.94 billion, and 13.64 billion yuan, indicating a strong cash flow position [24][25]. Fundraising Projects and Development Vision - The company plans to raise funds for six major projects, including the construction of an intelligent digital transformation platform and an advanced AI platform for the power industry [29][30]. - The expected internal rates of return for these projects range from 18.58% to 21.16%, demonstrating the potential for profitable investments [31].

Core Viewpoint - Nanfang Electric Power Digital Research Institute Co., Ltd. (Nanfang Digital) is progressing towards its IPO on the ChiNext board, having submitted its registration on September 28, 2025, just three months after its application was accepted [1][2]. Company Overview - Nanfang Digital, a subsidiary of China Southern Power Grid, focuses on digitalization in the power industry and was established in March 2017, transitioning to a joint-stock company in 2023 [3]. - The company is primarily controlled by the State-owned Assets Supervision and Administration Commission, with a 74% direct stake held by its parent company [3]. IPO Details - The company plans to issue 300 million to 480 million shares, representing 10% to 15% of the total post-issue share capital, with an expected fundraising amount of 2.55446 billion yuan [2][3]. Business Segments - Nanfang Digital's operations are divided into three main segments: grid digitalization, enterprise digitalization, and digital infrastructure [5]. - The grid digitalization segment has the largest revenue share, increasing from 28.31% in 2022 to 48.64% in the first half of 2025 [5]. Market Potential - The digitalization market for China's power energy sector is projected to grow from 315 billion yuan in 2024 to 370 billion yuan in 2025, with a compound annual growth rate of 10.86% from 2020 to 2025 [6]. Financial Performance - In 2023, Nanfang Digital experienced a revenue decline of 14.52 billion yuan, a 25.53% year-on-year drop, and a net profit decrease of 2.76 billion yuan, down 42.22% [6]. - However, in the first half of 2025, the company reported a revenue of 1.558 billion yuan, a 19.31% increase year-on-year, and a net profit of 13.03 million yuan, reversing a loss from the previous year [6]. Revenue Projections - The company anticipates second-half revenues between 4.85 billion and 5.15 billion yuan, with total annual revenues projected at 6.4 billion to 6.7 billion yuan and net profits between 572 million and 600 million yuan [7][8]. Client Dependency - Nanfang Digital has a high client concentration, with sales to its largest customer, Nanfang Electric Power, accounting for over 84% of its revenue from 2022 to the first half of 2025 [11][12]. - The company is working to diversify its client base, having established relationships with several major state-owned enterprises [12]. R&D Investment - The company invests significantly in R&D, with expenses of 5.01 billion yuan in 2022, representing 8.81% of revenue, although its R&D personnel ratio is lower than that of comparable companies [14].