Summary of the Conference Call for Yingjie Electric Industry and Company Overview - **Company**: Yingjie Electric - **Industry**: Nuclear Fusion Power, Semiconductor, Charging Piles, Energy Storage, Photovoltaics Key Points and Arguments 1. **Nuclear Fusion Market Potential**: Yingjie Electric has been deeply involved in the nuclear fusion power sector for 20 years, collaborating with research institutions like the Southwest Institute of Physics and the Chinese Academy of Sciences. The company expects to achieve over 100 million in revenue in 2024 from this sector, indicating significant market potential [2][6][10]. 2. **Technological Advantages**: The company has a strong technological edge in heating power and magnetic field power control, with current fluctuation rates controlled within 1/10,000. They have achieved long pulse continuous waves lasting 1,066 seconds, showcasing their technical capabilities [2][19][31]. 3. **Competition**: Yingjie Electric faces competition from companies like Anshan Tongchuang and Tianjin Mingwei, but its IGBT technology and flexible production capabilities position it well to capture market opportunities in nuclear fusion projects, which are expected to attract hundreds of billions in investment [2][7][10]. 4. **Impact of Photovoltaic Industry Decline**: The downturn in the photovoltaic industry has significantly affected Yingjie Electric, with domestic orders dropping sharply. The company has proactively expanded into semiconductors, charging piles, and energy storage, with semiconductor revenue expected to exceed 400 million this year, marking a growth of over 30% [2][22][34]. 5. **Response to Bad Debt Risks**: The company has taken measures to address bad debt risks in its photovoltaic business, including a provision of over 50 million for losses and strategies to recover customized power products through legal means [2][27]. 6. **Revenue Goals**: Yingjie Electric aims to achieve 5 billion in revenue within three to four years, leveraging growth in semiconductor, charging pile, energy storage, and overseas markets [4][42]. 7. **Nuclear Fusion Project Clients**: The company is involved in several domestic nuclear fusion projects, including those at the Southwest Institute of Physics and the Chinese Academy of Sciences, indicating a strong client base in the sector [4][5]. 8. **Market Share in Magnetic Field Power**: Yingjie Electric holds a market share of over 50% in the magnetic field power and cyclotron power sectors, reflecting its strong position in the industry [29]. 9. **Future Development Directions**: The company plans to focus on semiconductor, charging pile, energy storage, and photovoltaic sectors, with significant potential for growth in these areas [38][40]. 10. **International Market Challenges**: Yingjie Electric faces challenges in expanding into international markets due to geopolitical uncertainties and tariffs but continues to seek solutions and opportunities for growth [39]. Other Important but Possibly Overlooked Content - **Production Flexibility**: The company has strong flexible production capabilities, allowing it to quickly adapt to new industry demands despite current low photovoltaic orders [9][16]. - **R&D in Nuclear Fusion**: Yingjie Electric does not anticipate the need for new product development for nuclear fusion projects, as existing technologies can meet most requirements [12][31]. - **Sales Performance**: The company has signed contracts worth several million in 2025, indicating a positive trend in securing new orders despite challenges in the photovoltaic sector [21][24]. - **Long-term Outlook**: The company expresses confidence in a gradual recovery of the photovoltaic market and anticipates significant contributions from nuclear fusion projects in the coming years [43].

Investment Rating - The investment rating for the company is "Buy" [5] Core Views - The company is experiencing short-term pressure on performance, with expectations for accelerated progress in semiconductor RF power supply technology as it moves towards 5nm advanced processes [1][2] - The company has established itself as a leader in photovoltaic power supply, with a market share exceeding 70%, and is also making significant strides in the semiconductor power supply sector, which has become its second-largest revenue source after photovoltaics [2][3] - The company is focusing on key processes such as semiconductor etching and thin film deposition, while also expanding into emerging fields like silicon carbide epitaxy and composite copper foil [2] Financial Summary - For 2024, the company reported revenue of 1.78 billion yuan, a year-on-year increase of 0.6%, and a net profit of 320 million yuan, a decline of 25.2% [1] - The gross margin for 2024 was 38.5%, an increase of 1.3 percentage points year-on-year, while the net margin was 18.8%, a decrease of 5.5 percentage points [1] - The company expects net profits to grow significantly from 449 million yuan in 2025 to 712 million yuan in 2027, reflecting year-on-year growth rates of 39%, 21%, and 31% respectively [4]