Core Viewpoint - Jinlang Technology plans to issue new bonds worth 1.677 billion yuan on October 17, amid a significant decline in its stock price and a decrease in net profit for the third quarter of 2025 [1][3]. Financial Performance - For the first three quarters of 2025, Jinlang Technology reported revenue of 5.663 billion yuan, a year-on-year increase of 9.71%, and a net profit attributable to shareholders of 865 million yuan, up 29.39% year-on-year [3]. - In the third quarter of 2025, the company achieved revenue of 1.869 billion yuan, a slight increase of 3.43% year-on-year, but the net profit dropped by 16.85% year-on-year and over 35% quarter-on-quarter [3][4]. - The company attributed earlier growth to increased demand in the market, particularly in high-power inverter products and energy storage series [3]. Bond Issuance and Fund Utilization - Jinlang Technology intends to raise 1.677 billion yuan through the issuance of convertible bonds, which will be used for various projects including distributed photovoltaic power stations and new high-voltage inverter projects [3][4]. - The projects are expected to enhance production capacity significantly, adding 25,000 units of high-voltage inverters and 25,000 units of medium-power energy storage inverters, with projected annual net profits of approximately 77.28 million yuan and 124 million yuan respectively [4]. Market Position and Industry Outlook - According to Wood Mackenzie, Jinlang Technology ranks third globally in inverter product shipments, accounting for about 5% of the total global inverter shipments in 2024 [5]. - The global inverter market is expected to grow steadily, with shipments projected to reach 685.47 GW by 2030, driven by increasing demand in both photovoltaic and energy storage sectors [5].

Core Viewpoint - The company, Jinlang Technology, reported a slight increase in revenue for Q3 2025 but a significant decline in net profit, indicating potential challenges in maintaining profitability amidst rising costs and market pressures [1][2]. Financial Performance - In Q3 2025, Jinlang Technology achieved revenue of 1.869 billion yuan, a year-on-year increase of 3.43%, while net profit attributable to shareholders fell to 263 million yuan, a decrease of 16.85% [1]. - For the first nine months of 2025, the company reported total revenue of 5.663 billion yuan, up 9.71% year-on-year, and a net profit of 865 million yuan, an increase of 29.39% [2]. - Revenue for the first three quarters was 1.518 billion yuan, 2.276 billion yuan, and 1.869 billion yuan, with corresponding net profits of 195 million yuan, 407 million yuan, and 263 million yuan [2]. Cost and Expenses - The company experienced rising costs, with employee compensation reaching 150 million yuan, a year-on-year increase of 34.51%, and R&D expenses totaling 341 million yuan, up 17.02% [2]. - Sales and management expenses were reported at 417 million yuan and 237 million yuan, reflecting increases of 22.94% and 29.53% respectively [2]. Market Trends - The revenue from grid-connected inverters, which constitutes a significant portion of the company's income, declined by 11.22% year-on-year [2]. - The gross margin for household photovoltaic systems decreased by 3.19 percentage points, and the overall gross margin for overseas markets fell by 0.38 percentage points [2]. - In August, the export value of inverters was 6.29 billion yuan, a year-on-year increase of 2.2% but a month-on-month decline of 3.4% [2]. Fundraising and Future Projects - The company plans to issue 1.677 billion yuan in convertible bonds to fund various projects, including distributed photovoltaic power stations and new inverter projects [1][4]. - Upon completion, these projects are expected to add production capacity for 25,000 high-voltage inverters and 25,000 medium-power inverters, with projected annual net profits of approximately 77.28 million yuan and 124 million yuan respectively [4]. - The establishment of a 120 MW distributed photovoltaic power station is anticipated to generate an annual revenue increase of about 40.65 million yuan and a net profit increase of approximately 15.39 million yuan [4]. Risks and Challenges - The company highlighted potential risks including adverse changes in industry policies, market demand fluctuations, and increased competition, which could negatively impact revenue and profitability [3][5].

Core Viewpoint - Jinlang Technology's stock rose by 5.05% on September 29, reaching 88.17 CNY per share, with a trading volume of 1.16 billion CNY and a turnover rate of 4.16%, resulting in a total market capitalization of 35.10 billion CNY [1] Group 1: Company Overview - Jinlang Technology Co., Ltd. is located in Xiangshan Economic Development Zone, Zhejiang Province, and was established on September 9, 2005, with its listing date on March 19, 2019 [1] - The company's main business involves the research, production, sales, and service of string inverters, with the primary revenue composition being: grid-connected inverters 47.97%, household photovoltaic power generation systems 21.28%, energy storage inverters 20.91%, new energy power production 8.01%, and others 1.83% [1] Group 2: Fund Holdings - From the perspective of the top ten holdings of funds, one fund under Huabao has a significant position in Jinlang Technology. The Huabao Green Leading Stock Fund (007590) reduced its holdings by 5,200 shares in the second quarter, holding a total of 30,400 shares, which accounts for 3.04% of the fund's net value, ranking as the eighth largest holding [2] - The Huabao Green Leading Stock Fund (007590) was established on September 18, 2019, with a latest scale of 57.34 million CNY. Year-to-date returns are 16.67%, ranking 3028 out of 4220 in its category; the one-year return is 36.33%, ranking 2105 out of 3835; and since inception, the return is 41.59% [2] Group 3: Fund Manager Profile - The fund manager of Huabao Green Leading Stock Fund (007590) is Yan Xu, who has a cumulative tenure of 18 years and 113 days. The current total asset scale of the fund is 857 million CNY, with the best fund return during his tenure being 68.1% and the worst being -37.29% [3]

Core Viewpoint - Jinlang Technology, a leading inverter manufacturer, is accelerating its business expansion by issuing convertible bonds to raise up to 1.677 billion yuan for further investments in the photovoltaic and energy storage industries, as well as to supplement working capital [1][2] Financial Performance - Jinlang Technology's total assets have grown significantly from 649 million yuan in 2018 to 20.26 billion yuan by June 2025, representing an increase of over 30 times [1][3] - The company reported a net cash flow from investment activities of 328 million yuan in the first half of 2025, marking its first positive cash flow since 2018 [1][6] - The asset-liability ratio decreased to 56.35% by the end of June 2025, down from 71.55% in 2022, indicating improved financial health [6] Fundraising and Investment Plans - The planned issuance of convertible bonds will allocate 351 million yuan for working capital and the remaining funds for five specific projects, including a distributed photovoltaic power station project and new inverter production projects [2] - The distributed photovoltaic power station project will receive 355 million yuan, aimed at generating stable electricity sales revenue [2] - The new high-voltage, high-power inverter project and the medium and large power hybrid energy storage inverter project will receive 333 million yuan and 291 million yuan, respectively, with a production capacity of 25,000 units per year upon full operation [2] Research and Development - Jinlang Technology has invested a total of 1.479 billion yuan in R&D over the past five years, reflecting its commitment to innovation and technology advancement [4][6] - The company has consistently increased its R&D spending, with amounts reaching 384 million yuan in 2025's first half [6] - The product line has evolved from the first generation of inverter technology to the sixth generation, enhancing overall competitiveness in performance, functionality, reliability, and cost-effectiveness [5] Revenue Growth - In 2025's first half, Jinlang Technology achieved a revenue of 3.794 billion yuan, a year-on-year increase of 13.09%, and a net profit of 602 million yuan, up 70.96% [4] - The revenue from energy storage inverters surged by 313.51% to 793 million yuan, becoming a key driver of overall revenue growth [4]

Investment Rating - The report initiates coverage with a "Buy" rating for the company [3][4]. Core Views - The company's revenue for the first half of 2025 reached 3.794 billion yuan, a year-on-year increase of 13.09%, while net profit attributable to shareholders was 602 million yuan, up 70.96% year-on-year [1]. - The significant growth in profit is attributed to the high increase in energy storage inverter shipments, optimization of customer structure, and ongoing cost reduction efforts [1]. - The revenue from energy storage inverters surged to 790 million yuan, reflecting a year-on-year growth of 313.51%, with a gross margin of 30.27%, an increase of 2.69 percentage points [1]. - The company plans to issue convertible bonds to raise no more than 1.677 billion yuan for projects related to distributed photovoltaic power stations and high-voltage, high-power grid-connected inverters [2]. - The expected revenue for 2025-2027 is projected to be 8.302 billion yuan, 9.819 billion yuan, and 11.283 billion yuan, representing year-on-year growth rates of 26.9%, 18.3%, and 14.9% respectively [3]. Summary by Sections Revenue and Profitability - The company achieved a revenue of 3.794 billion yuan in the first half of 2025, with a net profit of 602 million yuan, marking significant year-on-year growth [1]. - The gross margin for grid-connected inverters was 26.12%, up 7.62 percentage points year-on-year, while the gross margin for energy storage inverters was 30.27% [1]. Market Expansion and Future Prospects - The company is expected to enhance its production capacity significantly with the new projects, which will strengthen its competitive position in the inverter and distributed power station markets [2]. - The anticipated revenue growth for the next three years indicates a robust upward trend in the company's financial performance [3]. Financial Forecast - The forecasted net profit for 2025 is 1.187 billion yuan, with a year-on-year growth of 71.7%, and projected profits for 2026 and 2027 are 1.483 billion yuan and 1.789 billion yuan respectively [3].

Investment Rating - The investment rating for the company is "Buy" [7][17]. Core Insights - The company achieved a revenue of 3.79 billion yuan in H1 2025, representing a year-on-year growth of 13.1%, and a net profit attributable to shareholders of 600 million yuan, up 71.0% year-on-year. In Q2 2025, revenue reached 2.28 billion yuan, with a year-on-year increase of 16.3% and a quarter-on-quarter increase of 50.0%. The net profit for Q2 was 410 million yuan, reflecting a year-on-year growth of 22.7% and a quarter-on-quarter growth of 109.3% [5][13]. Business Performance - The company's photovoltaic and energy storage inverter business has seen a recovery in profitability, with significant growth in overseas markets expected to support performance [5][17]. - The grid-connected inverter business generated 1.82 billion yuan in revenue in H1 2025, a decrease of 11.2% year-on-year, but with a gross margin of 26.1%, up 7.6 percentage points year-on-year. The sales volume reached 466,000 units, indicating a significant improvement in profitability [14]. - The energy storage inverter business experienced rapid expansion, achieving 790 million yuan in revenue, a year-on-year increase of 313.5%, with a gross margin of 30.3%, up 2.7 percentage points year-on-year [15]. - The distributed photovoltaic business steadily developed, generating 810 million yuan in revenue, a year-on-year increase of 4.1%, with a gross margin of 58.0%, down 3.2 percentage points year-on-year [16]. Financial Forecasts - The company is projected to achieve revenues of 7.96 billion yuan, 9.32 billion yuan, and 10.82 billion yuan for the years 2025, 2026, and 2027, respectively, with year-on-year growth rates of 21.7%, 17.1%, and 16.0%. The net profit attributable to shareholders is expected to be 1.19 billion yuan, 1.49 billion yuan, and 1.92 billion yuan for the same years, with growth rates of 72.1%, 25.6%, and 28.5% [17][18].

Performance Review - The company reported a revenue of 3.794 billion yuan for H1 2025, representing a year-on-year increase of 13.09% [1] - The net profit attributable to shareholders reached 602 million yuan, up 70.96% year-on-year [1] - The net profit excluding non-recurring items was 549 million yuan, reflecting a year-on-year increase of 71.8% [1] - In Q2, the company achieved a revenue of 2.276 billion yuan, a year-on-year increase of 16.25% and a quarter-on-quarter increase of 50.0% [1] - The net profit for Q2 was 407 million yuan, up 22.75% year-on-year and 109.27% quarter-on-quarter [1] Inverter Revenue Growth - In H1 2025, inverter revenue reached 2.61 billion yuan, showing a year-on-year increase of 16.6% [2] - Grid-connected inverter revenue was 1.82 billion yuan, down 11.2% year-on-year, while energy storage inverter revenue surged to 790 million yuan, up 313.5% year-on-year [2] - The significant growth in energy storage inverters was driven by recovering demand in the European market and growth in emerging markets in Asia, Africa, and Latin America due to policy support [2] Inverter Profitability Improvement - The overall gross margin for the inverter business in H1 2025 was 27.4%, an increase of 8.1 percentage points year-on-year [3] - The gross margin for grid-connected inverters was 26.1%, up 7.6 percentage points year-on-year, while energy storage inverters had a gross margin of 30.3%, up 2.7 percentage points year-on-year [3] - The improvement in profitability was attributed to increased R&D investment, a higher proportion of high-value inverter products, an optimized customer structure, and cost reduction strategies [3] Growth in New Energy Power and Generation Systems - New energy power revenue for H1 2025 was 300 million yuan, a year-on-year increase of 0.9%, with a gross margin of 52.8% [4] - Revenue from household photovoltaic generation systems was 810 million yuan, up 4.1% year-on-year, with a gross margin of 58.0% [4] - The growth was supported by seasonal factors, as Q2 is a peak season for photovoltaic generation, leading to increased production and revenue [4] - The company sold a total of 206.80 MW of distributed photovoltaic power stations and household photovoltaic generation systems, with an average transaction price of approximately 3.10 yuan/W and a profit of about 22.64 million yuan [4] Profit Forecast and Investment Recommendation - The company has adjusted its net profit forecast for 2025-2027 to 1.23 billion, 1.53 billion, and 1.81 billion yuan respectively [5] - The current stock price corresponds to a PE ratio of 20.7, 16.7, and 14.1 times for the years 2025, 2026, and 2027 [5] - Given the favorable demand in emerging markets and the ongoing inventory reduction in Europe, the inverter business is expected to continue growing, maintaining a "buy" rating [5]

Investment Rating - The report maintains a rating of "Accumulate" for the company [5] Core Views - The company has shown significant recovery in profitability due to the restoration of energy storage inverter sales and improved demand [2][4] - The company is expected to achieve substantial revenue growth driven by its core business in grid-connected inverters and the recovery of overseas energy storage inverter sales [4] - The company’s financial performance is supported by its stable power station assets and flexible business model [3] Financial Summary - Projected revenue for 2023A is 6,101 million yuan, with a year-on-year growth rate of 3.6%. By 2027E, revenue is expected to reach 10,499 million yuan, with a growth rate of 15.5% [1] - The net profit attributable to shareholders is projected to be 779 million yuan in 2023A, with a decline of 26.5%. By 2027E, it is expected to increase to 1,468 million yuan, with a growth rate of 15.2% [1] - The company’s return on equity (ROE) is expected to improve from 10.0% in 2023A to 12.3% in 2027E [1] - The earnings per share (EPS) is projected to increase from 1.95 yuan in 2023A to 3.68 yuan in 2027E [1] Sales and Profitability - In the first half of 2025, the company sold 466,200 inverters, with an overall gross margin of 27.38%, an increase of 8.1 percentage points year-on-year [2] - The sales of energy storage inverters contributed 793 million yuan in revenue, a year-on-year increase of 313.51% [2] - The company’s gross margin for energy storage inverters was 30.27% in the first half of 2025, reflecting a year-on-year increase of 2.69 percentage points [2] Asset Performance - The company’s power station business benefited from the traditional peak season for power generation, with a total operating distributed photovoltaic power generation of 667,500 kWh in the first half of 2025 [3] - The average transaction price for sold distributed photovoltaic power stations was approximately 3.10 yuan/W, generating a profit of about 23 million yuan [3] - The company’s household photovoltaic power generation systems and new energy power production segments contributed revenues of 808 million yuan and 304 million yuan, respectively, with gross margins of 58.02% and 52.78% [3]

Investment Rating - The report assigns an "Accumulate" investment rating for the company, indicating a potential increase of 5% to 15% relative to the CSI 300 index over the next six months [25]. Core Views - The company's energy storage business has seen significant growth, leading to a notable recovery in profitability. The company reported a total revenue of 3.794 billion yuan for the first half of 2025, a year-on-year increase of 13.09%, and a net profit attributable to shareholders of 602 million yuan, up 70.96% year-on-year [7][10]. - The company has optimized its product and customer structure, reducing the unit cost of inverters and continuously launching higher value-added products, which has resulted in an increase in gross profit margin by 3.49 percentage points to 35.67% [10]. - The company maintains a strong global position in the inverter market, ranking third globally with a 5% share of the inverter shipment volume in 2024, despite a 6.98% year-on-year decline in inverter sales volume in the first half of 2025 [10][11]. Summary by Sections Financial Performance - In the first half of 2025, the company achieved a total revenue of 3.794 billion yuan, with a net profit of 602 million yuan, reflecting a significant year-on-year growth of 70.96% [7][10]. - The operating cash flow for the period was 811 million yuan, up 36.56% year-on-year, with a diluted return on equity of 7%, an increase of 2.56 percentage points [7][10]. Business Segments - The revenue from the grid-connected inverter segment was 1.82 billion yuan, down 11.22% year-on-year, while the energy storage inverter segment saw a remarkable increase of 313.51%, generating 793 million yuan [10]. - The company’s overseas revenue reached 1.778 billion yuan, a year-on-year increase of 25.26%, with sales accounting for 46.86% of total revenue, up 4.56 percentage points [10]. Future Outlook - The company is expected to continue its growth trajectory, with projected net profits of 973 million yuan, 1.170 billion yuan, and 1.337 billion yuan for 2025, 2026, and 2027, respectively [12][23]. - The report anticipates that advancements in energy storage inverter technology and decreasing costs of energy storage systems will further enhance market growth [11].

Investment Rating - The report maintains a "Recommended" rating for the company [4][6]. Core Views - The company achieved impressive performance in Q2 2025, with a revenue of 22.76 billion yuan, a year-on-year increase of 16.25%, and a quarter-on-quarter increase of 50.00%. The net profit for the same period was 4.07 billion yuan, reflecting a year-on-year growth of 22.75% and a quarter-on-quarter growth of 109.27% [1]. - The growth in revenue and profit is attributed to the high growth in energy storage inverters, with sales revenue for energy storage inverters reaching 793 million yuan, a year-on-year increase of 313.51% [2]. - The company is focusing on optimizing product structure and increasing the sales proportion of high-margin customers, which has positively impacted gross margins [2]. Summary by Sections Financial Performance - In H1 2025, the company reported a total revenue of 37.94 billion yuan, a year-on-year increase of 13.09%, and a net profit of 6.02 billion yuan, a year-on-year increase of 70.96% [1]. - The inverter sales volume was 466,200 units, a year-on-year decrease of 6.98%, but revenue from inverters was 26.13 billion yuan, a year-on-year increase of 16.57% [2]. Business Segments - The household photovoltaic power generation system and new energy power production business showed stable growth, with revenue from household photovoltaic systems reaching 808 million yuan, a year-on-year increase of 4.12% [3]. - The cumulative installed capacity for new energy power production reached 1329.52 MW by June 30, 2025, primarily located in East, Central, and South China [3]. Future Projections - Revenue projections for 2025-2027 are estimated at 80.20 billion yuan, 97.98 billion yuan, and 115.72 billion yuan, with corresponding growth rates of 22.6%, 22.2%, and 18.1% [4]. - The net profit for the same period is projected to be 12.31 billion yuan, 15.23 billion yuan, and 18.16 billion yuan, with growth rates of 78.1%, 23.7%, and 19.3% respectively [4].