Group 1 - The stock price of LinYuan Energy increased by 2.12% on November 13, reaching 6.27 CNY per share, with a total market capitalization of 12.917 billion CNY [1] - Year-to-date, LinYuan Energy's stock price has decreased by 7.85%, but it has seen a 2.28% increase over the last five trading days [1] - The company has experienced a significant decline in revenue and net profit for the first nine months of 2025, with revenue of 3.674 billion CNY, down 28.88% year-on-year, and a net profit of 359 million CNY, down 60.56% year-on-year [2] Group 2 - LinYuan Energy's main business segments include smart grids, renewable energy, and energy storage, with the largest revenue contribution coming from electric meters and system products at 57.52% [2] - The company has distributed a total of 3.319 billion CNY in dividends since its A-share listing, with 1.529 billion CNY distributed in the last three years [3] - As of September 30, 2025, the number of shareholders decreased by 6.01% to 74,200, while the average circulating shares per person increased by 6.39% to 27,776 shares [2]

Core Insights - Linyang Energy's stock increased by 1.64% on October 15, with a trading volume of 165 million yuan [1] - The company reported a financing net purchase of 4.34 million yuan on the same day, with a total financing and securities balance of 581 million yuan [1][2] - The company's revenue for the first half of 2025 was 2.481 billion yuan, a year-on-year decrease of 28.35%, and the net profit attributable to shareholders was 324 million yuan, down 45.88% year-on-year [2] Financing and Securities - On October 15, Linyang Energy had a financing buy amount of 19.2834 million yuan, with a current financing balance of 579 million yuan, accounting for 4.53% of the circulating market value [1] - The financing balance is below the 10% percentile level of the past year, indicating a low position [1] - The company had a securities lending repayment of 16,000 shares and a securities lending sell amount of 58,700 shares, with a lending balance of 1.8276 million yuan, which is above the 60% percentile level of the past year, indicating a high position [1] Shareholder Information - As of June 30, 2025, Linyang Energy had 78,900 shareholders, an increase of 3.16% from the previous period [2] - The average circulating shares per person decreased by 3.07% to 26,108 shares [2] - The top ten circulating shareholders include significant institutional investors, with notable changes in holdings among various ETFs [3]

Core Viewpoint - Linyang Energy has shown steady growth in its electric meter sales, despite facing challenges from credit impairment and fair value changes impacting profits, leading to a maintained buy rating from analysts [1][2]. Financial Performance Summary - In 2024, Linyang Energy reported a revenue of 6.742 billion yuan, a decrease of 1.89% year-on-year, and a net profit of 753 million yuan, down 27.00% year-on-year. The adjusted net profit was 763 million yuan, reflecting a 12.00% decline [3]. - The fourth quarter of 2024 saw a significant loss of 157 million yuan, a decrease of 187.19% year-on-year and 150.48% quarter-on-quarter. The overall gross margin for 2024 was 29.54%, an increase of 1.11 percentage points, while the net margin was 11.42%, down 3.84 percentage points [3]. - For the first quarter of 2025, the company reported a revenue of 1.124 billion yuan, a decrease of 27.69% year-on-year, and a net profit of 124 million yuan, down 43.26% year-on-year, but showing a recovery from a loss in the previous quarter. The adjusted net profit was 122 million yuan, down 38.62% year-on-year [3]. - The gross margin for Q1 2025 was 27.58%, a decrease of 2.43 percentage points year-on-year, but an increase of 7.66 percentage points quarter-on-quarter. The net margin was 10.67%, down 3.21 percentage points year-on-year [3]. Business Segment Performance - The electric meter business achieved a revenue of 2.704 billion yuan in 2024, representing an 18.94% year-on-year growth, with a corresponding gross margin of 36.12%, up 1.19 percentage points [4]. - The demand for smart electric meters is expected to remain strong, driven by the upgrade of aging equipment in North America and the replacement and technological iteration in mature markets [4]. Valuation and Forecast - The earnings per share (EPS) forecasts for 2025-2027 have been adjusted to 0.41, 0.47, and 0.53 yuan, respectively, with corresponding price-to-earnings ratios of 13.6, 12.1, and 10.6 times. The buy rating is maintained due to the stability of the electric meter business [5].