Investment Rating - The report maintains a "Buy" rating for the company with a target price of RMB 35.70 [7]. Core Insights - The company aims to achieve new order targets exceeding RMB 10 billion for the year, with significant growth expected in the renewable energy sector and international business [1][2]. - The SST (Solid State Transformer) business is highlighted as a key area of growth, with the company providing a full range of critical equipment and solutions for data center power distribution systems [3][5]. Summary by Sections New Orders - In 2024, the new order amount is projected to be RMB 8.5 billion, with a target of exceeding RMB 10 billion in 2025, representing a year-on-year growth rate of approximately 20%. The growth rates for different sectors are: over 15% for the grid sector, around 30% for the renewable energy sector, and over 10% for traditional power generation and industrial sectors [2]. Renewable Energy Business - The renewable energy business is expected to maintain rapid growth due to several factors, including the impact of policy changes and the expansion of product offerings. The company is one of the candidates for a framework agreement for distributed phase-shifting transformers with Huaneng Group [2][4]. International Business - The strategic adjustments in international business are showing results, with overseas orders expected to reach RMB 500-600 million for the year, up from RMB 370 million in 2024. The company has already secured RMB 410 million in new orders in the first three quarters of 2025, a significant increase from RMB 150 million in the same period last year [2]. SST Business - The company offers a range of SST products with high efficiency (up to 99%) and reliability (99.99%). It has several benchmark projects demonstrating its capabilities in providing critical equipment and solutions for data center power distribution systems [3][5]. New Products - The company has launched the first energy-based SVG in Xinjiang, which is designed to support high proportions of renewable energy integration and enhance grid stability [4]. Profit Forecast and Valuation - The company’s net profit is projected to be RMB 845.59 million, RMB 988.59 million, and RMB 1.15 billion for the years 2025, 2026, and 2027, respectively, with a compound annual growth rate of 17.14%. The target price is based on a 30x PE ratio for 2026 [5][11].

Investment Rating - The report maintains a rating of "Buy" for the company [1][5]. Core Views - The company has shown significant improvement in profitability, with a year-on-year revenue growth of 53.55% in the first three quarters of 2025. The company is actively expanding its AIDC business, which is expected to drive future earnings growth [3][8]. - The earnings per share (EPS) estimates for 2025-2027 have been adjusted to 1.17, 1.50, and 1.81 RMB, respectively, reflecting a strong growth trajectory [5][7]. Financial Summary - The company reported a total revenue of 9.834 billion RMB in Q3 2025, a 10.53% increase year-on-year, with a net profit of 686 million RMB, up 53.55% year-on-year [8]. - The comprehensive gross margin improved by 5.89 percentage points to 26.41%, and the net profit margin increased by 2.88 percentage points to 7.01% in the first three quarters of 2025 [8]. - The company has established strong partnerships in the data center sector, collaborating with major clients such as China Mobile, Tencent, and Alibaba, enhancing its market position [8]. Valuation Metrics - The projected revenue for 2025 is 18.065 billion RMB, with a growth rate of 17.5%. The EBITDA is expected to reach 1.808 billion RMB, and the net profit is forecasted at 1.231 billion RMB, reflecting a growth rate of 34.3% [7][9]. - The price-to-earnings (P/E) ratio is projected to be 26.0 for 2025, decreasing to 16.8 by 2027, indicating an attractive valuation as earnings grow [5][7].

Core Viewpoint - The company, Sunshine Power (300274), announced on October 30 that its AIDC business is expected to have products available next year [1] Group 1 - The company is actively engaging with investors through an interactive platform [1] - The AIDC business is a new venture for the company, indicating potential growth opportunities [1]

Core Business Overview - The company's core business includes cold chain equipment, energy and chemical equipment, central air conditioning, and energy-saving heating, while leveraging its compressor technology to expand into hydrogen energy, CCUS, and natural gas compression equipment [1] - Products are widely used in various sectors such as food and agricultural product freezing and processing, cold chain logistics, industrial refrigeration systems, commercial air conditioning, and special industrial air conditioning [1] Market Outlook - The main business is expected to reach an inflection point, with a mild recovery in domestic commercial refrigeration and potential for overseas expansion [1] - Recent signals from the national nuclear power construction indicate a speeding up, with the company focusing on core scenarios like nuclear island cooling and heat recovery technologies [1] - Strong refrigeration demand is noted in Southeast Asia and the Middle East [1] AIDC Business Growth - The AIDC business is experiencing rapid growth, contributing to a new growth curve for the company [2] - The company’s subsidiaries provide cooling equipment for data centers and liquid cooling systems, successfully serving multiple high-profile projects in China and collaborating with local integrators in North America, Australia, Southeast Asia, and the Middle East [2] Financial Projections - The company is projected to achieve net profits of 720 million, 850 million, and 1 billion yuan from 2025 to 2027, with relative valuations of 19.7x, 16.7x, and 14.2x PE respectively [2] - Compared to similar companies in the data center cooling equipment sector, the average valuation is significantly higher, indicating a favorable investment outlook [2]

Core Viewpoint - The company is experiencing a significant increase in overseas energy storage orders, with its AIDC business expected to become a second growth curve [1] Group 1: Overseas Orders - In early August, the company signed a cooperation agreement with Bulgarian solar company SunterraRE to deploy a 1GWh battery storage system at three of its largest photovoltaic parks [1] - This follows a 2.4GWh storage order signed with European solar power station developer SUNOTEC in late July, indicating a clear acceleration in storage orders in the European market [1] - The company has consistently secured overseas storage orders since 2025, including a 500MWh order in Japan in February and a partnership with Renewable Power Capital (RPC) for a 50MW/100MWh storage project in Finland in March [1] Group 2: Competitive Position - The company is recognized as a leader in global photovoltaic inverters and large storage system integration, showcasing strong competitiveness in the global energy storage market [1] - The active expansion into the AIDC business further highlights the company's potential for growth and competitive advantage in the industry [1]