Core Viewpoint - Shenzhen Youyou Green Energy Co., Ltd. successfully listed on the Shenzhen Stock Exchange's Growth Enterprise Market on June 5, 2023, and is a leading supplier of charging modules for electric vehicles in China, holding a market share of 10.58% in 2023 [1][2]. Group 1: Company Overview - Youyou Green Energy specializes in the research, production, and sales of core components for direct current (DC) charging equipment for electric vehicles, with a focus on 15kW, 20kW, 30kW, and 40kW charging modules [2]. - The company has established long-term partnerships with leading enterprises in various sectors, including charging pile manufacturers and electric vehicle manufacturers, both domestically and internationally [2]. Group 2: Market Position and Growth - In 2023, the charging module market experienced an increase of 726.60 billion watts, with Youyou Green Energy's domestic sales reaching 76.90 billion watts, resulting in a market share of 10.58% [2]. - The company's revenue is projected to grow from 9.88 billion yuan in 2022 to 14.97 billion yuan in 2024, with a year-on-year increase of 3.87% expected in the first half of 2025 [3]. Group 3: Industry Trends - The electric vehicle market in China has seen significant growth, with annual sales rising from 301,700 units in 2016 to 8,968,100 units in 2023, reflecting a compound annual growth rate (CAGR) of 62.35% [4]. - The number of charging piles has increased from 445,700 units at the end of 2017 to 10,243,000 units by mid-2024, with a CAGR of 61.97% [4]. Group 4: Product Development and Innovation - Youyou Green Energy has developed new products, including a 40kW ultra-high power charging module and a 30kW charging module designed for harsh environments, which have received positive feedback from customers [4]. - The company is also focusing on small power DC charging products, V2G products, and energy storage charging products, with advancements in technology such as DSP chips enabling new applications [5][6]. Group 5: Research and Development Investment - The company's R&D investment has increased significantly, from 40.18 million yuan in 2022 to 109 million yuan in 2024, with a CAGR of 65.01% over the past three years [7]. - Youyou Green Energy aims to enhance its production capacity and market competitiveness through the establishment of a fully automated production line and further investment in emerging application areas [7].

Investment Rating - The report assigns a rating of "Neutral" based on the AHP score of 1.74, which places the company in the 23.4% percentile of the non-innovation system AHP model [7][8]. Core Insights - The company specializes in high-power, high-efficiency products and holds a significant market share in the domestic charging module sector, with a 10.58% market share in 2023 [9][10]. - The company plans to expand its production capacity for high-power charging equipment and is also entering the small DC fast charging and energy storage sectors [14][15]. - Compared to peer companies, the company has shown rapid revenue growth and maintains a higher gross margin level [22][24]. Summary by Sections AHP Score and Expected Allocation Ratio - The AHP score, adjusted for liquidity premium factors, is 1.74, indicating a mid-to-lower tier position in the market [7][8]. Fundamental Highlights and Features - The company is a major supplier of direct current charging equipment components for electric vehicles, with a focus on high-power charging modules [9][10]. - It has established long-term partnerships with leading companies in the charging and battery swap sectors, both domestically and internationally [9][10]. - The company is actively developing new products, including a 40KW ultra-high-power charging module and a 30KW independent airflow charging module, which have received positive feedback from clients [14][15]. Financial Metrics Comparison with Peers - The company's revenue from 2022 to 2024 was 9.88 billion, 13.76 billion, and 14.97 billion CNY, respectively, which is below the average of comparable companies [19][20]. - The net profit attributable to the parent company for the same period was 1.96 billion, 2.68 billion, and 2.56 billion CNY, placing it in the mid-range among peers [19][20]. - The gross margin for the years 2022 to 2024 was 31.30%, 33.13%, and 31.46%, which is higher than the average of comparable companies [22][24]. Fundraising Projects and Development Vision - The company plans to raise funds for the construction of a charging module production base and a headquarters and R&D center, aiming to enhance production capacity and reduce operational costs [26][27].

Core Viewpoint - Shenzhen Youyou Green Energy Co., Ltd. plans to raise funds through a public offering of up to 10.5 million shares, with the total amount depending on the actual issuance and pricing, to support projects related to its main business [1] Fund Utilization - The total investment for the charging module production base project is 272.8237 million yuan, with a construction period of 18 months, aimed at expanding and upgrading production capacity to meet market demand [1][2] - The company aims to enhance production capacity and reduce reliance on external suppliers by establishing an automated production line, which will also help mitigate production risks and support future performance growth [2][4][5] Business Growth - The company has experienced rapid growth, with a compound annual growth rate of 78.74% in revenue from 2021 to 2023, driven by increasing demand for charging modules and the expansion of the industry [2] - The company is actively seeking reliable external suppliers while also expanding its own production capabilities to meet the growing order demands [2][4] Product Development - The company emphasizes technological innovation and has increased R&D investment, launching new products such as the 40KW ultra-high power charging module and the independent air duct 30KW charging module, which have received positive market feedback [2][4][6] - The company plans to enhance its R&D capabilities by establishing a new headquarters and R&D center, which will improve working conditions and support the development of new technologies and products [11][12] Quality Management - The company has implemented a comprehensive quality management system certified by ISO9001:2015, ensuring high-quality product delivery through strict control processes [5][6] - The company has established strong relationships with suppliers, ensuring a stable supply of raw materials necessary for production [9] Environmental Considerations - The project will generate waste, including wastewater, waste gas, and solid waste, with specific measures in place for treatment and management to minimize environmental impact [10][11] Financial Strategy - The company plans to allocate 160 million yuan from the raised funds to supplement working capital, addressing the increasing operational needs due to business expansion [16][17] - The company aims to optimize its capital structure and reduce financial leverage through this funding, which will positively impact its financial performance [17]