Investment Rating - The report assigns a "Buy-A" investment rating with a target price of 45.45 CNY for the next six months [4][6]. Core Insights - The company has successfully transformed its business model, with significant growth in its new energy sector, which now serves as a key growth driver, surpassing traditional elevator business revenue [1][21]. - The implementation of the 136 document is expected to enhance the value of energy storage, with the introduction of a capacity price mechanism in Gansu province, which could be adopted nationwide, providing stable revenue for the energy storage industry [2][54]. - The company is strategically positioned to benefit from the green electricity revolution driven by the surge in AI computing power, with initiatives in data centers and green energy projects [3][55]. Summary by Sections 1. Dual Business Model Driving High-Quality Development - The company has diversified into the new energy sector through the acquisition of Beijing Tianqi Hongyuan, focusing on energy storage system integration and new energy power station development [15][16]. - In 2024, the new energy business revenue grew by 103.61% to 879 million CNY, accounting for 34.76% of total revenue, with a gross profit contribution of 64.75% [21][28]. - The company has successfully balanced the cyclical fluctuations of the elevator industry by expanding its new energy business [21][28]. 2. Policy-Driven Energy Storage Value Recovery - The cancellation of mandatory energy storage requirements is expected to shift the industry from price competition to product quality competition [40][51]. - Gansu province has introduced a capacity price mechanism for independent energy storage, which is anticipated to stabilize investment returns and promote sustainable development in the energy storage sector [54][55]. 3. Integrated Energy Supply Solutions - The increasing energy consumption of data centers, driven by AI, presents a significant opportunity for energy storage solutions [55][56]. - The integration of green electricity supply and independent energy storage is expected to create a synergistic revenue model, enhancing profitability for energy projects [63][64]. 4. Proprietary Technology and Product Barriers - The company has established a strong product barrier through self-developed technologies and a decade of industry experience, focusing on high reliability and energy efficiency in its energy storage products [66][68]. - The company holds 39 patents related to energy storage and has made significant investments in R&D, ensuring a competitive edge in the market [68].

Core Insights - The company is transitioning from a "Northern Wind Power Merchant" to a "National Energy Solution Provider," emphasizing its innovative business model and operational capabilities [1][2] - The company aims to reshape its development through asset liquidity, national business expansion, and value chain extension, focusing on high-quality growth [1][2] Business Model and Operations - The company operates as a comprehensive renewable energy power supplier, with a focus on renewable energy generation, sales, and supporting services [1][2] - The unique business model combines asset retention for stable cash flow and profit with market-driven asset monetization, enhancing earnings per share [2][3] - The company boasts a wind turbine utilization rate of 98%-99%, exceeding the industry average by over 3 percentage points, attributed to a refined operational management system [2][3] Business Segments - The five key business segments include: 1. Renewable power station development, construction, operation, and sale 2. Renewable power station operation management services 3. Rooftop distributed photovoltaic systems 4. Renewable energy industry funds 5. Renewable equipment manufacturing industrial park construction [3][4] National Expansion and Market Position - The company has accelerated its national footprint, establishing wind power projects in various provinces, moving from a regional focus in Ningxia to a presence in 23 provinces [4][5] - The core renewable power stations are crucial for the company's stability, while the operation management business is a significant growth driver, managing nearly 1GW of third-party power stations [5] Financial Performance - Since its listing, the company has seen substantial growth, with installed capacity increasing from less than 1GW to 2.28GW, revenue rising from 800 million to 2.4 billion, and net profit climbing from 165 million to 630 million [6][7] - A recent 1.2 billion capital increase project has been approved, aimed at enhancing operational funds and optimizing the asset-liability structure [6] Future Growth and Innovation - The company is currently constructing and planning an additional 2GW of wind power capacity, expected to support ongoing growth [7] - The company is exploring the "New Energy+" strategy, focusing on green fuel sectors, particularly in response to rising international demand for green fuels like green methanol [7]

Core Viewpoint - Baoxin Technology reported a significant decline in financial performance for 2024, with total revenue of 336 million yuan, a year-on-year decrease of 42.16%, and a net profit attributable to shareholders of -767 million yuan, a decline of 297.90% [1] Group 1: Smart Manufacturing Business - The smart manufacturing segment generated revenue of 253 million yuan, accounting for 75.42% of total revenue, reflecting a substantial year-on-year decline [4] - Despite investments in capacity expansion and technology upgrades, the segment's performance was hindered by weak market demand and intensified industry competition [4] - The company needs to optimize its production processes and sales channels to meet the growing demand for high-end manufacturing products [4] Group 2: New Energy Business - The new energy segment, which includes photovoltaic cells and components, faced challenges due to an imbalance in supply and demand within the industry, leading to a failure to achieve expected growth [5] - The company explored advanced technologies such as heterojunction (HJT) and perovskite tandem technology but did not see significant revenue improvement [5] - The divestiture of Baoxin Smart Energy for 8.9 million yuan was aimed at optimizing assets, but its short-term impact on overall performance was limited [5] Group 3: Operational Model and Performance Drivers - The company employs a strategic control model to ensure stable operations across subsidiaries, utilizing a "sales-driven production" and "production-driven procurement" approach [6] - Despite operational optimizations, the financial results showed a significant decline in profitability, with a weighted average return on net assets of -14.30%, down 10.17 percentage points year-on-year [6] - The return on invested capital was -1.93%, a decrease of 0.51 percentage points compared to the previous year, indicating that strategic adjustments did not effectively counteract the adverse economic conditions [6] Group 4: Overall Business Outlook - Baoxin Technology faces considerable operational pressure in 2024, with unmet performance expectations despite strategic initiatives in smart manufacturing and new energy [6] - The company must further optimize its industrial structure and enhance core competitiveness to adapt to market changes and industry challenges [6]