Group 1 - The company, Xigao Institute, is focusing on opportunities arising from the national "dual carbon" strategy and the construction of a new energy system, emphasizing grid investment upgrades and clean energy development [1] - The company is experiencing continuous business expansion and stable order growth, with an increase in contract liabilities due to a prepayment model [1] - In 2024, the company plans to invest CNY 84.8 million in R&D to address the demand for low-energy and low-emission technology iterations [1] - The company is pursuing high-end, intelligent, and green technology layouts, considering acquisitions of companies with specialized technical advantages to enhance competitiveness [1] - The company has implemented a market value management system to enhance investment value through various means [1] - The company completed the distribution of dividends for 2024 on June 6 [1] - The company is actively conducting research on key technologies for environmentally friendly electrical equipment to support the national "dual carbon" goals [1] - The ultra-high voltage testing market is expected to expand continuously in 2025, driven by policy support and large-scale investments, with accelerated technology iterations [1] - The company has diversified growth points, participating in cutting-edge project R&D and validation, and increasing investment in technology R&D and innovation [1] - The company is exploring quality targets, focusing on standards, testing, measurement, certification, and technical consulting [1] - For energy storage business, the company has developed a strategy centered on technological innovation and R&D investment [1] - The company has a clear technology development layout, focusing on intelligent development, sulfur hexafluoride elimination technology, online monitoring technology, and AI perception technology [1] - Some overseas clients are choosing to send products for testing at Xigao Institute, with controllable transportation costs and no plans for overseas factories [1] - Besides acquisitions, the company aims to enhance traditional testing capabilities and promote asset restructuring and capacity enhancement [1] Group 2 - Shanghai Xitai Investment Management Co., Ltd. is a newly emerging private equity fund manager in the Chinese market, established on July 9, 2014, with a registered capital of CNY 10 million [2] - The company specializes in secondary market stock investment management, providing customized product services for investors with different risk preferences [2] - The research team consists of highly qualified employees, with 80% holding graduate degrees, and core investment personnel have backgrounds in public funds with extensive experience in portfolio management [2] - The team has a proven ability to manage large-scale assets and adapt to various market environments, demonstrating resilience through market cycles [2]

Group 1: Core Business and Financial Performance - The company is a leading comprehensive service provider in the electrical field, focusing on inspection, testing, measurement, certification, and technical consulting for smart grid construction [1] - In 2024, the company achieved a revenue of 798 million yuan, a year-on-year increase of 5.73%, and a net profit attributable to shareholders of 229 million yuan, a year-on-year increase of 20.78% [1] Group 2: Expansion into New Energy and International Markets - The company established a new energy laboratory and energy storage testing facility, achieving leading domestic testing capabilities in the new energy sector, with R&D investment of 84.79 million yuan in 2024, a year-on-year increase of 20.98% [2] - The company made significant breakthroughs in overseas business, completing orders from countries such as Russia, Indonesia, Brazil, and the UAE, with overseas revenue of 8.67 million yuan in 2024, a year-on-year increase of 153.80% [2] Group 3: Market Potential and Growth in UHV Testing - The company is positioned as a potential leader in the UHV testing field, with high technical content and significant capital investment, and is expected to maintain high growth rates in this area [2] - The market for UHV testing is projected to grow significantly due to increased demand from downstream electrical equipment suppliers as the State Grid accelerates UHV construction during the 14th Five-Year Plan period [2]

Investment Rating - The investment rating for the company is "Buy" and is maintained [6]. Core Views - The company is expected to achieve a total revenue of 800 million yuan in 2024, representing a year-on-year increase of 5.7%. The net profit attributable to the parent company is projected to be 230 million yuan, up 20.8% year-on-year, while the net profit excluding non-recurring items is expected to reach 190 million yuan, reflecting a 41.7% increase [3][11]. - For the first quarter of 2025, the company anticipates a revenue of 210 million yuan, which is a 12.1% year-on-year growth, with a net profit of 60 million yuan, also up 12.1% year-on-year, and a net profit excluding non-recurring items of 60 million yuan, indicating a 34.6% increase [3][11]. Financial Performance - In 2024, the company's total revenue from testing services is expected to be 738 million yuan, a 5.4% increase year-on-year, while revenue from technical research and consulting is projected to be 35 million yuan, up 14.98% [11]. - The overall gross margin for 2024 is projected to be 52.72%, with the fourth quarter gross margin reaching 55.41%. The gross margin for testing services is expected to be 54.74%, an increase of 4.63 percentage points year-on-year, while the gross margin for technical research and consulting is expected to be 39.39%, up 8.51 percentage points [11]. - The company’s operating cash flow for 2024 is expected to reach 482 million yuan, a 54.3% increase year-on-year, with the fourth quarter cash flow reaching 170 million yuan, up 117.5% year-on-year [11]. Market Position and Strategy - The company completed the acquisition of Henan High Voltage Electrical Research Institute in 2024, enhancing its overall competitiveness and market share. It aims to consolidate its leading position in the high-voltage electrical field domestically while actively expanding into emerging application areas [11]. - The company has successfully completed overseas orders from countries such as Russia, Indonesia, Brazil, and the UAE, showcasing its strong international presence [11].