Incident: The company won the bid for a competitive negotiation and procurement project for electric vehicle charging piles at Zhejiang Petroleum Integrated Energy Service Station. The company issued an announcement: The company received the “Notice of Winning Bid” for the 2019-2020 procurement framework agreement electric vehicle charging equipment competitive negotiation and procurement project of Zhejiang Petroleum Comprehensive Energy Sales Co., Ltd. The total tender amount for this project was RMB 28.182,800, and the company won the bid amount of RMB 15.506 million, with a share of 55% (according to amount), ranking first. The winning bid amount this time accounted for 1.58% of 2018 revenue. The competitiveness of charging piles is prominent, and the entire “car+pile+aftermarket” industry chain has been built. The company has been deeply involved in the field of high-frequency switching power supplies for many years, has accumulated deep technology, mastered the core technology of high-power conversion modules and high-quality hardware equipment, and built a “light+storage+charging” overall solution platform. It has become Didi's exclusive national charging equipment supplier, and is a leading domestic new energy charging equipment company. In August 2019, the company signed a charging pile investment and operation cooperation agreement with Xiaoju New Energy and Zhejiang Trading Investment to give full play to their collaborative advantages, shape the “car+pile+aftermarket” business model for the entire industry chain, and use trading group resources to enter a broad charging pile manufacturing and operation market. The first bid share verifies the dominant position and lays the foundation for subsequent cooperation. According to the “Zhejiang Comprehensive Energy Supply Service Station and Supporting Storage and Transportation Facility Construction Plan”, Zhejiang Province plans to build about 700 new integrated energy service stations by 2020 to form an energy network throughout the province. This tender is the first batch of charging facility tenders for integrated energy stations. The company was selected as the first finalist, verifying the company's dominant position in the charging pile field, which is conducive to the sustainable and large-scale development of the company's charging pile business. At the same time, it has laid a good foundation for subsequent equipment bidding, operation and maintenance platform construction, and the construction of overall cloud energy management solutions such as photovoltaics, energy storage, and charging piles. A leader in high voltage DC power supplies, 5G+IDC requires two-wheel drive. As 5G enters the commercial era, the density and power consumption of 5G base stations have surged, and the corresponding communication power supply market is expected to exceed 50 billion yuan. Currently, distributed computing scenarios such as big data and cloud computing around the world are growing rapidly, thus spawning broad data center power demand, and HVDC corresponding to mainstream power supply technology will usher in a phase of accelerated demand. The company has been deeply involved in the field of communication power supplies for many years. As a leader in high-voltage DC power supply technology, it will fully benefit from the broad demand for 5G and IDC power supply equipment. Energy Internet platforms are beginning to emerge, and they are ubiquitous and important participants in construction. The company entered the field of power informatization through a merger and acquisition of Zhongheng Borui in 2012, raised 1 billion yuan to build an energy Internet cloud platform in 2016, and gradually built an industry entity focusing on the energy Internet. In the context of the current “ubiquitous power Internet of Things” and “digital South Grid” construction, investment in power grid informatization is expected to explode. The company has built the Energy Internet Research Institute platform and launched ubiquitous power IoT solutions. It is expected that the energy Internet industry system will fully support ubiquitous construction, and it is expected that it will fully benefit from the growth in demand in the power informatization and energy internet industry. Investment advice: The company has been deeply involved in power electronics and power informatization for many years. It has obvious advantages in the field of electric vehicle charging piles and HVDC. Currently, it has benefited from 5G construction, the acceleration of IDC power supply demand, “ubiquitous” comprehensive promotion, and energy internet construction. This bid has verified the company's dominant position in the charging pile field and lays a good foundation for subsequent cooperation. We expect the company's net profit to be worth 1.51/223/276 million yuan in 2019-2021, and EPS of 0.27/0.40/0.49 yuan respectively, corresponding to the closing price of PE on September 17, 2019, 45.1/30.5/24.7 times, respectively, maintaining an increase rating. Risk warning: NEV production and sales fall short of expectations, 5G investment falls short of expectations, macroeconomic growth falls short of expectations