Core Viewpoint - Shenzhen Youyou Green Energy Co., Ltd. successfully listed on the Shenzhen Stock Exchange's Growth Enterprise Market on June 5, 2025, raising funds for its future development projects [1][3]. Group 1: Company Overview - Youyou Green Energy, established in 2015, specializes in the research, production, and sales of core components for DC charging equipment for new energy vehicles [5]. - The company offers charging modules of 15KW, 20KW, 30KW, and 40KW, primarily used in DC charging piles and cabinets [5]. - Youyou Green Energy is recognized as a leading supplier of charging modules in China, being one of the first to launch a 30KW charging module [6]. Group 2: Market Position and Performance - In 2023, the incremental market for charging modules in mainland China is estimated at 726.60 billion watts, with Youyou Green Energy's domestic sales at 76.90 billion watts, giving it a market share of 10.58% [6]. - The company has established long-term stable partnerships with numerous leading enterprises in various sectors, including charging pile manufacturers and new energy vehicle manufacturers [6]. Group 3: Financial and Strategic Initiatives - The recent IPO involved the issuance of 10.5 million shares at a price of 89.60 yuan per share, raising a total of 94.08 million yuan, aimed at supporting the construction of a charging module production base and a headquarters and R&D center [3]. - Guolian Minsheng Securities acted as the sponsor for the IPO, providing comprehensive investment banking services and maintaining a strong position in the industry [3].

Core Viewpoint - Shenzhen Youyou Green Energy Co., Ltd. is set to launch its IPO on May 26, aiming to raise 700 million yuan for the construction of a charging module production base, headquarters, R&D center, and to supplement working capital [2][3]. Investment Projects - The total investment for the charging module production base is 272.82 million yuan, with 270 million yuan funded by the IPO proceeds [3]. - The headquarters and R&D center project has a total investment of 274.65 million yuan, also utilizing 270 million yuan from the IPO [3]. - The company plans to allocate 160 million yuan for working capital [3]. Customer Dependency and Revenue - The top five customers, including Wanbang Digital and ABB, have significant equity relationships with Youyou Green Energy, contributing a high proportion of revenue [4][5]. - Sales revenue from the top five customers over the reporting periods were 299.81 million yuan, 613.34 million yuan, 617.14 million yuan, and 254.21 million yuan, representing 69.63%, 62.08%, 44.86%, and 35.21% of total revenue respectively [5][6]. Related Party Transactions - The company has been questioned regarding the fairness of pricing in related party transactions, particularly concerning equity stakes held by major customers [9]. - Youyou Green Energy asserts that sales to Wanbang Digital increased post-investment due to the latter's business growth, with average sales prices remaining consistent with other customers [9][10]. Market Position and Competition - Youyou Green Energy has established stable partnerships with major clients, but there are concerns about dependency on these relationships, especially with Wanbang Digital and ABB [13]. - The company has signed three-year cooperation framework agreements with ABB and Wanbang Digital, although specific details of these agreements remain undisclosed [13]. Financial Performance - The gross profit margins for domestic sales were 24.32%, 19.96%, and 23.79% over the reporting periods, while international sales margins were higher at 49.48%, 46.25%, and 44.94% [15]. - The company’s sales to ABB have shown a consistent increase, aligning with ABB's own revenue growth in the electric transportation sector [14][15].

Investment Rating - The investment rating for the company is "Buy," indicating that the expected return over the next 6-12 months is greater than 15% compared to the relevant market index [28]. Core Viewpoints - The company, Youyou Green Energy (301590.SZ), specializes in the research, production, and sales of core components for direct current (DC) charging equipment for electric vehicles, with significant growth in revenue and profit over the past few years [7][21]. - The company has established itself as a major supplier in the domestic electric vehicle charging module sector, with a focus on high power density and high power output technologies [21][22]. - The company is actively expanding its product offerings to include small power DC charging products, V2G products, and energy storage charging products, which are currently in small-scale application stages [22]. Financial Performance - The company achieved revenues of 988 million yuan, 1.376 billion yuan, and 1.497 billion yuan for the years 2022, 2023, and 2024, respectively, with year-over-year growth rates of 129.44%, 39.24%, and 8.86% [8][4]. - The net profit attributable to the parent company was 196 million yuan, 268 million yuan, and 256 million yuan for the same years, with year-over-year growth rates of 325.30%, 36.84%, and -4.60% [8][4]. - For the first quarter of 2025, the company reported revenues of 361 million yuan, a 6.47% increase year-over-year, while net profit decreased by 14.66% to 61 million yuan [8]. Industry Overview - The charging module industry is a critical component of the electric vehicle DC charging equipment sector, benefiting from the growth of the electric vehicle and charging infrastructure markets [16][17]. - The market for charging modules is expected to grow significantly, driven by the increasing demand for high-power DC charging solutions as electric vehicle adoption rises [16][19]. - The company is positioned to capitalize on this growth, with a projected market share of 10.58% in the Chinese mainland charging module market for 2023 [21]. Company Highlights - The company has developed a range of charging modules, including 15KW, 20KW, 30KW, and 40KW, and is one of the first in the industry to introduce these power levels [21]. - The company has established long-term partnerships with leading firms in the industry, including ABB and Wanbang Digital, which hold equity stakes in the company [21]. - The company is recognized as a "specialized and innovative" small giant enterprise by the Ministry of Industry and Information Technology, highlighting its technical capabilities and market influence [7]. Investment Projects - The company plans to invest in two main projects through its IPO proceeds: the construction of a charging module production base and the establishment of a headquarters and R&D center [23][24]. - The production base project is expected to generate annual revenues of 4.675 billion yuan upon full production, while the R&D center will enhance the company's ability to keep pace with industry trends [23]. Peer Comparison - Compared to similar companies in the industry, Youyou Green Energy's revenue for 2024 is projected at 1.497 billion yuan, which is below the average revenue of 4.968 billion yuan for comparable companies [25][26]. - However, the company's sales gross margin is positioned in the mid-to-high range compared to its peers, indicating strong operational efficiency [25].