Core Viewpoint - Tianfeng Securities report indicates that Youyou Green Energy's main business focuses on charging pile power modules, emphasizing core technology and new product development with a light asset model [1] Group 1: Business Overview - The company has advantages in product iteration, customer structure, and overseas expansion [1] - The downstream extensibility of power modules is strong, with high-voltage direct current power modules applicable in data center direct power supply fields, opening up growth space [1] Group 2: Financial Projections - Revenue from 20kw, 30kw, and 40kw modules in 2024 is projected to be 0.7 billion, 6 billion, and 7.4 billion respectively, with year-on-year changes of -67%, -28%, and +155% [1] - Revenue shares for these modules are expected to be 5%, 40%, and 50%, with year-on-year changes of -10 percentage points, -20 percentage points, and +29 percentage points, indicating a significant increase in the revenue share of the 40kw module [1] Group 3: Future Outlook - The company is expected to see a rise in overseas revenue share and product upgrades, leading to rapid growth in net profit attributable to shareholders in 2026 and 2027 [1] - The expansion of product categories is anticipated to extend into the data center sector, with a projected PE of 40x for 2026, corresponding to a stock price of 285.7 yuan, initiating coverage with a "buy" rating [1]

Investment Rating - The report assigns a "Buy" rating for the company with a target price of 285.7 CNY, based on a 2026 PE of 40x [5][41]. Core Insights - The company specializes in high-power charging modules and has a strong focus on research and development, with a light asset model that emphasizes core technology and new product development [1][33]. - The company has significant growth potential in the downstream market, particularly in data centers, as high-voltage direct current (HVDC) power modules can be utilized in this sector [1][32]. - The company has established a strong customer base, including well-known domestic and international clients, which enhances its market position [29]. Summary by Sections Business Overview - The company primarily operates in the charging module sector, focusing on high-power modules and expanding its business from domestic to international markets [11][12]. - The product structure is evolving, with a notable increase in the revenue share of 40kW modules, which accounted for 50% of total revenue in 2024, reflecting a year-on-year growth of 155% [20][12]. Financial Performance - Revenue projections for 2025-2027 are estimated at 13.5 billion, 16.2 billion, and 19.5 billion CNY, with corresponding growth rates of -10%, 20%, and 20% [38][39]. - The company expects a decline in net profit in 2025 to 2.0 billion CNY, followed by a recovery with growth rates of 48% and 37% in 2026 and 2027, respectively [38][39]. Market Position and Customer Base - The company has a high overseas revenue share, with Europe being the largest market, contributing 52% of total revenue in 2022 [12][24]. - Major clients include Wanbang Digital, ABB, and BTC POWER, which collectively account for 33% of the company's revenue in 2024 [29][31]. Research and Development - The company invests heavily in R&D, with a research expense ratio of 7.3% in 2024, significantly higher than sales and management expense ratios [33][34]. - The focus on R&D supports the development of innovative products and enhances the company's competitive edge in the market [33][23]. Industry Outlook - The power module industry has strong growth potential, particularly in the data center sector, as the shift from AC to DC power supply is expected to drive demand for HVDC products [32][1]. - The company's light asset model allows for flexibility and efficiency in operations, with most production processes outsourced [33][1].