Industry Overview - The China Photovoltaic Industry Association has called for enhanced industry self-discipline to maintain fair competition and a healthy market order in the photovoltaic sector, which is a strategic emerging industry with global advantages [2] - The industry is currently facing supply-demand imbalances and intensified market competition, hindering high-quality development [2] Self-Discipline Initiatives - Companies are urged to resist engaging in malicious competition by selling below cost and to adhere to quality standards to avoid subpar products [2] - The association emphasizes the importance of innovation and transitioning from low-efficiency competition to high-quality competition [2] - Local governments are encouraged to enforce antitrust laws and ensure compliance with national market policies [2] Price Recovery in the Supply Chain - Recent months have seen a recovery in prices across the photovoltaic supply chain, influenced by expectations of "anti-involution" measures and self-discipline agreements [3] - Prices for key components such as silicon materials and wafers have significantly increased since early July, with module prices also showing recovery [3] - Recent procurement projects by major companies have seen bids higher than previous central enterprise procurement prices, indicating a positive price trend [3] Financial Performance of Photovoltaic Companies - A limited number of photovoltaic equipment stocks reported positive net profit growth for the first half of 2025, with notable performers including Jinlang Technology, which achieved a net profit of 602 million yuan, up 70.96% year-on-year [4][5] - Other companies like Hengdian East Magnetic and Qingyuan Co. also reported substantial profit increases, reflecting strong market demand and recovery in the European market [4][5] Investment Trends - As of August 22, seven photovoltaic equipment stocks have seen net purchases exceeding 100 million yuan, indicating strong investor interest [5] - Jiejia Weichuang leads with a net purchase of 747 million yuan since August, and its stock has risen 25.2% year-to-date [6]

Core Insights - The report highlights the emerging opportunities in AIDC (Automatic Identification and Data Capture) driven by the rapid development of AI technology, leading to increased investment and power demand in the sector [2] - The company has received a "buy" rating due to its strong growth potential and diversified business strategy [1][5] AIDC Demand Surge - The demand for AIDC-related power distribution equipment, such as transformers and medium-low voltage switchgear, is rising due to higher stability and reliability requirements [2] - The company plans to invest in a digital factory for data center power modules in Tongxiang, Zhejiang, with a focus on new product development [2] - Revenue from data center power modules has shown a CAGR of 33.2% over the past three years, with over 300 data center projects utilizing its products [2] Diversified Business Development - The company’s main products include transformers, switchgear, energy storage products, and digital factory solutions, with applications in both renewable and non-renewable sectors [3] - In 2024, the company expects revenue of 3.71 billion yuan from non-renewable sectors, a 31.0% increase year-on-year, driven by data center sales [3] - The renewable sector is projected to generate 3.01 billion yuan in revenue, a decline of 19.2% due to falling prices in the polysilicon segment [3] Global Expansion Success - The company has successfully expanded its overseas market presence, with foreign sales revenue reaching 1.98 billion yuan in 2024, a 68.3% increase [4] - Its products have been used in over 500 overseas power station projects and 14 rail transit projects [4] - The company operates 11 production bases globally and is expanding its capacity in Mexico, the US, and Malaysia [4] Investment Outlook - The company is expected to achieve revenues of 8.60 billion yuan, 10.64 billion yuan, and 13.06 billion yuan from 2025 to 2027, with corresponding net profits of 742 million yuan, 1.02 billion yuan, and 1.31 billion yuan [5] - The projected PE ratios for 2025, 2026, and 2027 are 32, 23, and 18 times, respectively, indicating strong growth potential [5]

Investment Rating - The report maintains an "Overweight" rating for the electric power equipment and new energy industry, expecting the industry index to outperform the market index by over 10% in the next six months [2][43]. Core Insights - The electric power equipment industry has shown strong performance, with a 5.47% increase over the past two weeks, outperforming the CSI 300 index by 3.07 percentage points, ranking 5th among 31 industries [10][11]. - The report highlights the positive performance of companies like Jinlang Technology, which reported a 13.09% increase in revenue and a 70.96% increase in net profit year-on-year for the first half of 2025, driven by the growth in demand for medium and high-power inverter products and energy storage series products [35][37]. - The report suggests focusing on leading inverter companies benefiting from the development of new energy storage technologies [35]. Market Review - As of August 14, 2025, the electric power equipment sector has increased by 8.42% year-to-date, outperforming the CSI 300 index by 2.36 percentage points, ranking 20th among 31 industries [10][11]. - The wind power equipment sector rose by 7.17%, the photovoltaic equipment sector by 4.91%, and the battery sector by 5.45% in the last two weeks [15][16]. Valuation and Industry Data - As of August 14, 2025, the electric power equipment sector's PE (TTM) is 27.02 times, with sub-sectors showing varied valuations: electric motor II at 54.17 times, photovoltaic equipment at 19.85 times, and wind power equipment at 33.38 times [21][24]. - The report provides a detailed breakdown of the valuation metrics for various sub-sectors, indicating a general upward trend in valuations compared to historical averages [24][25]. Company Announcements - Jinlang Technology's strong performance is attributed to increased market demand and product innovation, with significant growth in both revenue and net profit reported for the second quarter of 2025 [35][37]. - Other companies such as Dongfang Cable and Kelu Electronics also reported varying performance metrics, with some showing significant revenue growth while others faced declines in net profit [37]. Industry News - Recent developments include the approval of large-scale independent energy storage projects in Inner Mongolia and adjustments to the registration of polysilicon futures brands, indicating ongoing investment and regulatory activity in the sector [32].

公司25H1 新能源电力生产收入3.04 亿，同比+0.9%，毛利率52.8%，同比-1.6pct。公司25H1 户用光伏发 电系统8.08 亿元，同比+4.1%，毛利率58.0%，同比-3.2pct。公司25H1 共计出售分布式光伏电站及户用 光伏发电系统206.80MW，平均交易价格约3.10 元/W，利润约2264 万元。公司25H1新增已运营分布式 光伏电站的总发电量66.75 万度，并网电量为 1.91 万度，电费收入45.31 万元。子公司锦浪智慧专业从 事分布式光伏电站的开发、投资及运维，具备丰富的电站运营经验，有望持续受益于行业需求的增长。 公司发布25 年半年度报告，公司25H1 收入37.9 亿元，同比+13.1%，25H1归母净利润6.0 亿元，同比 +71.0%，扣非净利5.5 亿元，同比+71.8%，归母净利同比高增主要系中大功率逆变器产品及储能系列产 品占比提升，带动逆变器毛利率提升以及储能收入快速增长。公司位列逆变器第一梯队，产品力突出， 维持"增持"评级。 产品结构优化，25Q2 毛利率环比大幅提升 25Q2 收入22.76 亿元，同/环比+16.3%/+50.0%，25Q2 ...

Investment Rating - The report maintains an "Accumulate" rating for the company [7][9]. Core Views - The company reported a revenue of 3.79 billion RMB for the first half of 2025, representing a year-on-year increase of 13.1%. The net profit attributable to shareholders reached 600 million RMB, up 71.0% year-on-year, driven by the increased proportion of medium and high-power inverter products and rapid growth in energy storage revenue [3][5]. - The company is positioned in the first tier of inverters, with strong product capabilities, and is expected to benefit from the recovery in energy storage demand, which has exceeded previous expectations [7][9]. Summary by Sections Revenue and Profitability - In the second quarter of 2025, the company achieved a revenue of 2.276 billion RMB, with a year-on-year increase of 16.3% and a quarter-on-quarter increase of 50.0%. The net profit attributable to shareholders was 407 million RMB, reflecting a year-on-year increase of 22.7% and a quarter-on-quarter increase of 109.3% [4]. - The gross margin for Q2 2025 reached 38.06%, up 6.00 percentage points quarter-on-quarter, primarily due to the increased proportion of high-margin customers and products [4]. Product Performance - In the first half of 2025, inverter revenue was 2.613 billion RMB, a year-on-year increase of 16.6%. The sales volume was 466,200 units, down 7.0% year-on-year, with a gross margin of 27.38%, up 8.1 percentage points year-on-year [5]. - Energy storage inverters saw a significant revenue increase of 313.5% year-on-year, reaching 570 million RMB, with a gross margin of 30.3% [5]. Future Projections - The company has revised its profit forecasts upward, expecting net profits attributable to shareholders of 1.251 billion RMB, 1.369 billion RMB, and 1.592 billion RMB for 2025, 2026, and 2027 respectively, reflecting increases of 80.95%, 9.45%, and 16.32% [7][12]. - The target price for the company's stock is set at 75.36 RMB, based on a price-to-earnings ratio of 24 times for 2025 [7][10].

Core Viewpoint - Hainan Jinpan Intelligent Technology Co., Ltd. has transformed from a traditional power equipment company into an innovative, technology-driven, and digital enterprise, focusing on the development of transformers and related products while expanding into intelligent manufacturing and AI integration [1][2]. Group 1: Company Overview - Established in 1997, Jinpan Technology has developed a global production base, with operations in countries such as Mexico, Poland, and Malaysia, and its products are distributed in over 80 countries and regions [1]. - The company has received various international certifications for its main products, including UL and KEMA [1]. Group 2: Financial Performance - In the first quarter of this year, Jinpan Technology reported steady revenue growth, particularly in data centers and wind energy sectors [2]. - As of March 31, the order amount for the company's complete series products in the data center sector increased by 43.25% compared to the same period last year [2]. Group 3: Research and Development - Jinpan Technology invested 356 million yuan in R&D in 2024, resulting in 284 effective patents, 73 software copyrights, and 37 trademarks [2]. - The company has successfully completed projects such as the 20.6MVA dry-type transformer for floating wind turbine units, recognized as an advanced equipment manufacturing project in Hainan Province [2]. Group 4: Strategic Initiatives - In 2024, Jinpan Technology aims to integrate AI technology with its digital manufacturing platform to enhance production efficiency and product quality across the entire business chain [3]. - The company is focusing on the intelligent industrial robot sector, particularly in smart welding, handling, and collaborative robots, to drive its smart manufacturing transformation [3]. Group 5: Future Outlook - Jinpan Technology plans to increase R&D investment in 2025, continuing to drive technological innovation and expand its product matrix with digital, low-carbon, and intelligent products [3]. - The company aims to establish a three-dimensional driving model focusing on global market layout, high-value products, and efficient production operations, leveraging technology innovation as a key engine for growth [4].