Core Viewpoint - The recent listing of Youli Intelligent Equipment Co., Ltd. on the Beijing Stock Exchange marks the fourth photovoltaic company to go public in A-shares this year, but the company faces significant challenges in a competitive market [2][3]. Company Overview - Youli Intelligent focuses on core components of photovoltaic brackets, including torque tubes, bearing components, installation structures, and purlins [3]. - The company has shown exceptional performance in a challenging market, with revenue growth from 433 million yuan in 2022 to 729 million yuan in 2024, and net profit doubling from approximately 41.95 million yuan to 89.86 million yuan during the same period [3][4]. Financial Performance - In Q1 2025, Youli Intelligent reported revenue of 272 million yuan, a year-on-year increase of 47.33%, and a net profit of approximately 32.87 million yuan, up 16.24% from the previous year [3]. - The company expects to achieve revenue between 462 million yuan and 482 million yuan in the first half of 2024, representing a growth of 24.43% to 29.82% compared to the same period in 2023 [4]. Market Dynamics - Youli Intelligent's overseas revenue accounts for over 70% of its total income, with significant exports to regions such as Brazil, Chile, Australia, Canada, Europe, and the Middle East [4]. - The market for tracking brackets is highly concentrated, with NEXTracker being a leading player, holding a market share of 25%-30% [5]. Customer Concentration - The company has a high customer concentration, with sales to its top five customers accounting for 94.90% to 96.44% of total revenue from 2022 to 2024 [6]. - The first major customer, NEXTracker, contributed 70% of the company's revenue in 2024, indicating a significant dependency on a few key clients [6]. Risks and Challenges - Despite revenue growth, Youli Intelligent faces risks related to high customer concentration and potential adverse changes in relationships with major clients [6][7]. - The company is also vulnerable to fluctuations in raw material prices, particularly steel, which could impact profit margins if costs cannot be passed on to customers [7]. - The gross margin has shown a declining trend, with figures of 18.96%, 18.49%, and 18.42% from 2022 to 2024 [7]. Future Outlook - The market demand for tracking brackets is expected to continue growing, driven by increased penetration rates and global installation expansion [8]. - However, trade policies, such as tariffs on Chinese photovoltaic components in the U.S., may hinder market access, while emerging markets in the Middle East and Europe could provide alternative growth opportunities [8].

Investment Rating - The investment rating for the company is "Buy" due to its strong performance and growth potential in the photovoltaic support structure market [37]. Core Viewpoints - The company is recognized as a "small giant" in the photovoltaic support structure sector, with significant sales growth driven by major overseas clients, particularly NEXTracker, which accounts for 70% of its sales in 2024 [32][6]. - The company has established strong partnerships with well-known photovoltaic support structure enterprises both domestically and internationally, enhancing its market presence [7]. - The company has shown rapid revenue and profit growth, with a projected revenue of 729 million yuan and a net profit of approximately 90 million yuan for 2024, reflecting a CAGR of 29.78% and 46.09% respectively over the past three years [8]. Summary by Sections 1. Company Overview - The company specializes in photovoltaic support structures, including key components such as torque tubes (TTU), bearing components (BHA), and installation structure parts (URA) [6]. - It has a strong focus on research and innovation, holding 61 patents and various quality certifications [6]. 2. Issuance Plan - The new share issuance will adopt a direct pricing method, with an initial scale of 11.2 million shares, representing 26.67% of the total post-issue share capital, and is expected to raise approximately 269 million yuan [14][17]. 3. Industry Situation - The photovoltaic industry is experiencing rapid growth, with global new installations expected to reach between 390GW and 430GW in 2024 [19]. - The domestic market continues to lead globally in new installations, with significant growth in the demand for photovoltaic support structures anticipated [20]. 4. Competitive Advantages - The company has advantages in process technology, cost control, production delivery, and quality management, which enhance its competitiveness in the market [25][26]. - It has established long-term relationships with major clients, ensuring stable demand for its products [26]. 5. Comparable Companies - The company is compared with other firms in the industry, showing a lower market capitalization and PE ratio, indicating potential for growth relative to its peers [33]. 6. Subscription Analysis - The report recommends active participation in the subscription, highlighting the company's low initial valuation and small float, which could lead to significant upside potential [32].