Investment Rating - The report maintains a "Recommended" rating for the company [4][6]. Core Views - The company achieved a revenue of 3.154 billion yuan in H1 2025, representing a year-over-year increase of 8.16%, with a net profit of 265 million yuan, up 19.10% year-over-year [1]. - The company is experiencing significant growth in overseas markets, with overseas revenue increasing by 11.27% in H1 2025, and domestic orders growing by over 30% year-over-year [2]. - The company is focusing on the AIDC sector, with a projected compound annual growth rate (CAGR) of 79.22% in the data center segment from 2022 to 2024, and a notable increase in sales revenue in this area [3]. Summary by Sections Financial Performance - In H1 2025, the company reported a gross profit margin of 25.87%, an increase of 2.80 percentage points year-over-year, and a net profit margin of 8.34%, up 0.79 percentage points year-over-year [1]. - The company’s sales in the data center sector reached over 500 million yuan in H1 2025, marking a 460.51% increase year-over-year [3]. Order Backlog - The company has a substantial order backlog of 7.540 billion yuan (excluding tax), with domestic orders at 4.738 billion yuan and foreign orders at 2.802 billion yuan, reflecting a year-over-year growth of 14.89% [2]. Growth Projections - Revenue projections for 2025 to 2027 are 9.184 billion yuan, 11.001 billion yuan, and 13.445 billion yuan, with corresponding growth rates of 33.1%, 19.8%, and 22.2% respectively [4][5]. - The expected net profits for the same period are 732 million yuan, 1.046 billion yuan, and 1.549 billion yuan, with growth rates of 27.3%, 43.0%, and 48.1% respectively [4][5].

Core Viewpoint - Jinpan Technology (688676.SH) plans to issue convertible bonds to raise funds for various projects, including smart manufacturing and working capital, with a total amount not exceeding 1.6715 billion yuan [1][2]. Group 1: Convertible Bond Issuance - The convertible bonds will be issued at a face value of 100 yuan each, with a term of 6 years from the issuance date [1]. - The total amount to be raised from the issuance is capped at 1.6715 billion yuan, which will be allocated to specific projects and working capital [2][4]. - The initial conversion price will be determined based on the average stock price over the 20 trading days prior to the announcement [1][2]. Group 2: Fund Allocation - The funds will be used for several projects, including: - Data center power modules and energy-efficient power equipment manufacturing, with a total investment of approximately 523.42 million yuan, of which 473.37 million yuan will be funded by the raised capital [3][4]. - High-efficiency liquid-immersed transformers and amorphous alloy core manufacturing, with a total investment of about 734.22 million yuan, with 616.53 million yuan from the raised funds [4]. - R&D office building construction in Tongxiang, with an investment of 82.97 million yuan, funded entirely by the raised capital [4]. - Supplementing working capital with 501.40 million yuan [4]. Group 3: Previous Fundraising and Financial Performance - Jinpan Technology has previously raised funds through convertible bonds, totaling approximately 976.70 million yuan in a prior issuance [5]. - The company reported a revenue of 1.343 billion yuan for the first quarter of 2025, reflecting a year-on-year increase of 2.90%, and a net profit attributable to shareholders of 107.24 million yuan, up 13.32% [7][8]. - The net cash flow from operating activities for the same period was 135 million yuan [8].