SIEYUAN(SZ:002028)2026-02-13 02:50Summary of Longjiang Electric New Energy (Siyuan Electric) Conference Call Company Overview - The company is preparing for a Hong Kong IPO, with significant focus on its business operations and growth potential in the transformer and energy storage sectors [1][2]. Key Financial Highlights - Transformer Revenue: In Q1-Q3 2025, transformer revenue reached 3.3 billion yuan, representing a year-on-year increase of 35%, accounting for 24% of total revenue [1][2]. - Energy Storage Revenue: Energy storage revenue was 800 million yuan, showing a year-on-year growth of 87%, contributing to 6% of total revenue [1][2]. - Overseas Revenue: The company reported overseas revenue of 4.2 billion yuan in Q1-Q3 2025, a significant increase of 73%, making up 30% of total revenue [4]. Profitability Metrics - Gross Margin: The gross margin for transformer products was 36% in Q1-Q3 2025, an increase of 3 percentage points year-on-year, aligning with the gross margin of switch products, indicating strong profitability in overseas markets [4]. Capacity Expansion - The company is expanding its production capacity across various products, with transformer capacity reaching approximately 870 units by the end of Q3 2025, and a continuous improvement in capacity utilization [4]. Future Development Directions - Capital Utilization: The funds raised from the IPO will be directed towards: - Expanding production capacity for switches, transformers, supercapacitors, and establishing an IGCT converter valve base. - Enhancing research and development capabilities, including the establishment of experimental centers, overseas R&D and testing centers, and data centers. - Strategic global acquisitions in power electronic devices, energy storage materials, overseas power distribution companies, and energy technology innovation firms. - Digital and intelligent transformation of the enterprise. - Working capital improvements [4]. Market Positioning - The company emphasizes the strong demand in North America for high-voltage transformers, identifying a significant supply gap. It positions itself strategically in the U.S. high-voltage transformer export market, which is considered to have the strongest certainty for growth [4]. Financial Projections - The company forecasts net income attributable to shareholders of approximately 4.2 billion yuan and 5.5 billion yuan for the years 2026 and 2027, respectively, corresponding to price-to-earnings ratios of approximately 38X and 29X, maintaining a strong buy recommendation [4].