Investment Rating - The report assigns a "Buy" rating for the company with a target price of 16.43 CNY, based on a PEG valuation method [6][4]. Core Viewpoints - The company is positioned as a leader in the variable frequency transformer market, benefiting from the steady growth in demand for high-voltage variable frequency drives driven by energy efficiency needs and policy support [2][40]. - The company has a strong market presence with over 25% market share in the variable frequency transformer sector, being one of the earliest manufacturers in China [2][47]. - The company is expanding into new business areas such as data centers, with products like phase-shifting transformers and solid-state transformers under development, which are expected to contribute to future revenue growth [3][50]. Summary by Sections Company Overview - Established in 1985, the company specializes in various types of special transformers, power transformers, reactors, and energy storage products, with a focus on variable frequency transformers [1][13]. - The company has a concentrated ownership structure, with the actual controllers holding 56.75% of the shares [13]. Main Business - The company is a leading manufacturer of variable frequency transformers, which are essential components of high-voltage variable frequency drives, accounting for approximately 29% of their cost structure [2][44]. - The demand for high-voltage variable frequency drives is expected to continue growing, which will drive the demand for variable frequency transformers upward [2][42]. Incremental Business - Data Centers - The company is developing products for data centers, including phase-shifting transformers and solid-state transformers, which are anticipated to enhance efficiency and meet the evolving needs of modern data centers [3][50]. - The phase-shifting transformer is already being applied in Panama's power supply systems, demonstrating significant efficiency improvements [51]. Profit Forecast and Valuation - Revenue projections for 2025-2027 are estimated at 478.3 million, 623.4 million, and 833.18 million CNY, with year-on-year growth rates of 26.9%, 30.3%, and 33.6% respectively [4][5]. - The company is expected to return to profitability in 2025, with a net profit forecast of 42.4 million CNY, following a loss in 2024 [4][36].

Core Viewpoint - The company is focusing on developing phase-shifting transformer products for HVDC data center power solutions, indicating a strategic shift towards this growing market segment [1] Group 1 - The phase-shifting transformer products are specifically designed for HVDC data center power solutions and Panama power data center solutions [1] - The application of phase-shifting transformer products in data centers is a key development area for the company in recent years [1] - The company plans to invest more resources to actively explore business markets related to these products [1]

Core Viewpoint - The company is focusing on the development of solid-state transformers, which are currently in the research and development phase [1] Group 1: Product Development - The company has been emphasizing the development of various transformer products, including phase-shifting transformers, dry-type transformers, oil-immersed transformers, and distribution transformers [1] - The company plans to allocate more resources to actively explore key product categories in the market [1]

Core Viewpoint - The company is focusing on expanding its market for phase-shifting transformer products, particularly in data centers, despite their current low revenue contribution in the fiscal year 2024 [1] Group 1 - The revenue contribution of phase-shifting transformer products in the fiscal year 2024 is relatively small [1] - The company has identified phase-shifting transformers for data centers as a key development area in recent years [1] - The company plans to allocate more resources to actively explore business opportunities in this market [1] Group 2 - The company has already improved its production capacity this year [1]

Group 1 - The company Igor (002922.SZ) indicated that its revenue from phase-shifting transformers is relatively small in the fiscal year 2024 [2] - The phase-shifting transformers used in data centers are a key focus for the company in recent years, with plans to invest more resources to actively expand the business market [2] - The company has improved its production capacity this year and aims to leverage its intelligent manufacturing advantages to create more reliable and energy-efficient data center products and solutions to better meet the needs of domestic and international data center clients [2]

Group 1 - The company has a medium-voltage direct current power supply system intelligent manufacturing project that produces products within the medium and low voltage range [2] - The products from this intelligent manufacturing project can be used to produce phase-shifting transformers applicable in data centers [2] - The investor inquired whether the project could produce transformers for Panama power supply or for HVDC applications [2]

Investment Rating - The report maintains a "Buy" rating for the company [1][9]. Core Insights - The company achieved a revenue of 1.08 billion yuan in Q1 2025, representing a year-on-year growth of 40%, but a quarter-on-quarter decline of 22.4%. The net profit attributable to the parent company was 40 million yuan, down 28% year-on-year and down 48.8% quarter-on-quarter [5]. - The company is increasing its R&D investment to enhance product competitiveness, with a R&D expense ratio of 4.6%, up 0.7 percentage points year-on-year [6]. - The company is expanding its customer base in the renewable energy sector, with energy product sales growing by 28.2% year-on-year, and lighting products increasing by 20.5% due to market demand recovery [6]. - The global production base construction is progressing, with new facilities in Anhui, Malaysia, Thailand, and the US, which is expected to support performance growth and mitigate tariff impacts on exports to North America [6]. - The company is expected to benefit from the growing demand for data center construction, with projections for revenue growth of 26% in 2025 and 21% in 2026 [7][8]. Financial Projections - The company is projected to achieve revenues of 5.825 billion yuan in 2025, 7.065 billion yuan in 2026, and 8.318 billion yuan in 2027, with corresponding net profits of 421 million yuan, 555 million yuan, and 692 million yuan respectively [7][8]. - The estimated P/E ratios for 2025, 2026, and 2027 are 14.35, 10.88, and 8.72 respectively, indicating a favorable valuation trend [7][8]. Shareholder Returns - The company has implemented a share buyback plan, repurchasing 7.0449 million shares, which is 1.7962% of its total share capital, to enhance investor confidence [8]. - A cash dividend of 3 yuan per 10 shares was distributed, totaling 116 million yuan, reflecting a commitment to shareholder returns [8].