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].

Core Insights - The successful expert review of the Huaneng Honghe Valley energy-coupled SVG demonstration project marks a significant advancement in Xinjiang's grid equipment development, contributing critical technological support for the construction of a new power system [1] Group 1: Project Overview - The project is the first energy-coupled SVG in Xinjiang, serving as a core "active stabilizer" for the power grid [1] - The deployment of this equipment addresses voltage fluctuation issues in renewable energy bases, enhancing the grid's disturbance resistance and improving regional renewable energy absorption levels [1] Group 2: Technical Standards and Implementation - State Grid Xinjiang Electric Power Company has proactively developed and implemented the "Technical Specifications for Energy-Coupled SVG in Xinjiang Power Grid," establishing clear technical standards for energy configuration, voltage support strength, and active power regulation [1] - The project ensures efficient and precise engineering progress through these defined technical standards [1] Group 3: Testing and Validation - A dual verification testing model combining "laboratory semi-physical simulation + on-site measurement" has been innovatively constructed to validate the performance of the equipment [1] - The testing encompasses eight categories and 323 sub-items, thoroughly verifying the reliability of the control strategies and optimizing core control parameters [1]