Investment Rating - The report maintains a "Recommended" rating for the company [4][6]. Core Insights - The company has demonstrated steady growth in performance, with a revenue of 5.188 billion yuan for the first three quarters of 2025, representing a year-over-year increase of 14.14%. The net profit attributable to shareholders reached 359 million yuan, up 19.32% year-over-year [2][4]. - In Q3 2025 alone, the company achieved a revenue of 1.998 billion yuan, reflecting a year-over-year growth of 26.03% and a quarter-over-quarter increase of 14.25%. The net profit for the quarter was 122 million yuan, showing a significant year-over-year increase of 81.92% [2][4]. - The company plans to distribute a cash dividend of 6 yuan for every 10 shares, totaling an expected payout of 163 million yuan, continuing its stable dividend policy [2][4]. Financial Performance Summary - For the first three quarters of 2025, the gross margin was 20.56%, an increase of 2.48 percentage points year-over-year, while the net profit margin was 6.98%, up 2.50 percentage points year-over-year [2][4]. - The company has seen a continuous increase in the proportion of new businesses, such as electric control systems for new energy vehicles and portable energy storage, which rose from 20.92% in H1 2024 to 28.56% in H1 2025 [2][4]. - The revenue projections for 2025 to 2027 are 7.934 billion yuan, 10.077 billion yuan, and 12.666 billion yuan, respectively, with corresponding net profits of 588 million yuan, 800 million yuan, and 1.061 billion yuan [5][8]. Business Development - The establishment of a branch in Hangzhou and partnerships with Texas Instruments and Renesas Electronics are aimed at accelerating the development of AI server power supplies [3][4]. - The company has developed a comprehensive product matrix in the server power supply sector, covering power ranges from 550W to 8000W, and has achieved large-scale delivery of products [3][4]. - The collaboration with Texas Instruments focuses on server power supplies and fast charging adapters, while the partnership with Renesas aims to enhance the company's technology layout in AI server power supplies and data center energy solutions [3][4].

Summary of the Conference Call for Yingjie Electric Company Overview - **Company**: Yingjie Electric - **Industry**: Controlled Nuclear Fusion, Photovoltaic, Semiconductor, AI Server Power Supply Key Points Progress in Controlled Nuclear Fusion - Yingjie Electric has made significant progress in the controlled nuclear fusion sector, with products applied in multiple domestic projects. Sales in this area reached over ten million in 2024, with expected growth in order volume for 2025 [2][3][5] - The company has collaborated with the Southwest Institute of Physics for 20 years, transitioning from laboratory to application stages, leading to increased market demand [3] Photovoltaic Industry Challenges - The photovoltaic sector accounts for about half of Yingjie Electric's revenue, but faces order pressure due to industry downturns. Domestic orders are projected to drop from over 600 million yuan in 2024 to over 40 million yuan in 2025 [2][4][17] - Yingjie aims to deepen its photovoltaic business over the next two to three years, targeting 5 billion yuan in revenue within 3 to 4 years, focusing on semiconductor growth and charging station development [4][23] Technical Advantages - The company possesses strong technical capabilities in high-power and high-voltage power supply, particularly in megawatt-level power for multi-crystalline reduction furnaces and IGBT technology for magnetic field power supplies [2][6][10] - Yingjie Electric's ability to meet special DC power requirements positions it favorably against competitors [6][10] Market Competition and Strategy - Despite early entry into the controlled nuclear fusion market, competition remains fierce. Yingjie Electric focuses on enhancing performance and technical capabilities to gain customer trust and secure more orders [7][8] - The company is actively engaging with new clients to ensure a strong presence during the anticipated procurement peak from late 2025 to early 2026 [9][15] Financial Outlook - Yingjie Electric faces revenue pressure in 2025, particularly in the semiconductor sector, with expected revenue growth slowing. The semiconductor revenue was approximately 350 million yuan in 2024, with projections for over 400 million yuan in 2025 [21][20] - The company has recognized potential risks in accounts receivable and has made provisions for inventory impairment [17][18] Future Development Plans - Yingjie Electric plans to explore new market opportunities in AI server power supply, with ongoing efforts to connect with major clients in the Southwest region [25][29] - The company aims to maintain its competitive edge through technological innovation and rapid response to customer needs, particularly in emerging sectors [26][29] Long-term Goals - The company has set a target to achieve 5 billion yuan in revenue within 3 to 4 years, focusing on semiconductor and charging station markets while ensuring profitability [23][24] Conclusion - Yingjie Electric is positioned to leverage its technical strengths and market opportunities in controlled nuclear fusion and AI server power supply, while navigating challenges in the photovoltaic sector and semiconductor market. The company remains committed to innovation and customer engagement to drive future growth [24][29]