Investment Rating - The investment rating for the company is "Buy" with a current price of 66.21 RMB and a fair value of 84.92 RMB [5]. Core Views - The company has achieved significant growth in its annual performance, with emerging businesses such as server power supplies and overseas pre-installation expected to flourish in 2025 [2][3]. - The company is projected to maintain rapid growth in 2025, with a revenue forecast of 2.477 billion RMB, despite a year-on-year decline of 10.8% due to asset disposals. The net profit attributable to shareholders is expected to reach 383 million RMB, reflecting a year-on-year increase of 32.0% [8][12]. - The server power supply business is progressing rapidly, having entered the supply chains of international first-tier brands, with batch deliveries already achieved [12]. - The traditional main business shows promising prospects, particularly in the European pre-installation market, which is expected to generate an annual incremental space of 1-1.5 billion USD due to new EU regulations [12]. Financial Summary - The company’s revenue is projected to grow from 2.777 billion RMB in 2024 to 5.446 billion RMB in 2028, with growth rates of 63.5%, -10.8%, 29.3%, 32.8%, and 28.0% respectively [4][21]. - EBITDA is expected to increase from 390 million RMB in 2024 to 1.182 billion RMB in 2028, indicating strong operational performance [4]. - The net profit attributable to shareholders is forecasted to grow from 290 million RMB in 2024 to 1.073 billion RMB in 2028, with growth rates of 184.5%, 31.9%, 34.6%, 51.6%, and 37.4% respectively [4][21]. - The earnings per share (EPS) is projected to rise from 1.64 RMB in 2024 to 5.90 RMB in 2028 [4][21]. - The company’s price-to-earnings (P/E) ratio is expected to decrease from 29.1 in 2024 to 11.2 in 2028, indicating improving valuation metrics [4][21].

Core Insights - The Chinese redundant power system industry is experiencing strong demand driven by AI computing power and "new infrastructure," with a projected market size of approximately 30.8 billion yuan in 2024, reflecting a year-on-year growth of 8.83% [1][8] - The growth is attributed to the rigid demand for high reliability in power supply for key infrastructures such as data centers, communication networks, and industrial internet, as well as the direct pull from high-power density loads like AI servers [1][8] - The focus of competition in the industry has shifted from traditional general-purpose products to customized and intelligent solutions such as high-voltage direct current (HVDC) and liquid-cooled power supplies [1][8] Industry Overview - Redundant power systems (RPS) are designed to achieve load balancing, automatic fault switching, and continuous power supply through parallel or backup designs of multiple power modules, ensuring seamless operation even during main power failures [2] - The systems typically utilize chip-controlled modules for load distribution and health monitoring, supporting hot-swappable functionality to allow for module replacement without service interruption [2] Industry Value Chain - The upstream of the redundant power system industry includes raw materials and components such as MOSFETs, IGBTs, diodes, chips, sensors, and various protective devices [4] - The midstream involves the production and manufacturing of redundant power systems, while the downstream applications span data centers, industrial automation, communication, transportation, medical, and aerospace sectors [4] Market Size - The market size of the Chinese redundant power system industry is expected to reach approximately 30.8 billion yuan in 2024, with an 8.83% year-on-year growth, driven by the demand for high reliability in power supply for critical infrastructures [1][8] - The industry is witnessing a transition towards customized and intelligent solutions that cater to high-efficiency computing clusters [1][8] Key Companies Performance - The industry has a high concentration of market players, with companies like Eurotech deeply integrated with major clients such as Inspur and Alibaba, and their 800V HVDC solution passing tests by Meta [8] - Megmeet has entered the Nvidia supply chain and co-developed an immersion liquid-cooled power supply, supporting a power density of 300kW per cabinet [8] - Zhongheng Electric provides deep service in the HVDC market for internet giants like Tencent and Alibaba [8] Industry Development Trends 1. **Technological Evolution**: The industry is evolving towards AI-driven intelligent redundancy, enhancing energy efficiency and smart development, with power conversion efficiency exceeding 96% and modular designs supporting high power density [11] 2. **Rising Market Demand**: The demand for redundant power modules is increasing significantly, particularly in data centers, driven by projects like "East Data West Computing" and the growth of 5G and industrial automation [12] 3. **Policy and Industry Synergy**: National goals for carbon neutrality and the "14th Five-Year Plan" are pushing the industry towards greener and more autonomous upgrades, with an increasing penetration of domestic power management chips [13]