Events:

Recently, the company issued an annual performance forecast for 2019, and it is expected that the net profit attributed to shareholders of listed companies in 2019 will be profitable compared with a net loss of 280 million yuan in the same period last year, and the net profit attributed to shareholders of listed companies is 10 million yuan to 15 million yuan. The net profit attributable to shareholders of listed companies after deducting non-recurring profits and losses is expected to be 20 million yuan to 25 million yuan in 2019. The performance growth in 2019 confirms that the company's business has come out of the trough of transformation.

Comments:

The power industry recovers and the main revenue is growing rapidly.

For many years, the company has been committed to the research and application of power electronics and information technology-related products in the field of green energy and smart energy. In 2019, in the face of the complex domestic and foreign environment, the company adheres to the core strategy of "focusing on the main business" and continues to focus on power conversion and energy utilization in the three major industries of data communications, smart energy and new energy vehicles, driven by technological innovation. to provide customers with products to overall solutions and complete life cycle services in the three major industries. Last year, the company's main business income maintained steady growth, and the net profit attributed to shareholders of listed companies also increased. There are both industry factors and internal adjustment factors in the performance and profit of the company. On the one hand, with the start of domestic 5G construction, the communication power supply industry began to recover, and the communication power supply business income maintained rapid growth. The company seized the opportunity of industry recovery, increased the layout of overseas business, and actively opened up overseas markets. Overseas business revenue continues to grow. On the other hand, the company comprehensively implements fine management, streamlines organizational structure, taps potential and increases efficiency, further improves management and operational efficiency, and makes new energy business and new energy business income grow rapidly. no, no, no.

Speed up the supply of communication power products and expand the business field of data centers compared with 4G network equipment, 5G network has made a significant improvement in architecture, equipment and devices, not only the equipment power has increased significantly, but also the technical performance parameters have been significantly improved. And the number of wireless base stations will be expanded by more than 1.5 times. It is expected that the investment in base station equipment of telecom operators will exceed 250 billion this year, and the corresponding demand for communication power products will also reach a new high. The recovery of the industry has brought an opportunity for the growth of the company's main power business. The company has seized the large demand for power equipment from 5G network construction. On the one hand, it has strengthened the investment in technology research and development to develop 5G high-power power products; on the other hand, the Anhui intelligent factory production base, which has been built on the other hand, has greatly enhanced the automation of the production line and further enhanced its product manufacturing capacity. In particular, as the supplier of China Tower Corporation energy exchange cabinet project, the company will cooperate with China Tower Corporation Energy Company to complete the "hundred cities and ten thousand stations" project. At the same time, the company increases the construction of supply chain platform and process platform, and further improves the response speed and product delivery ability of the supply chain by combing and optimizing the internal management process of the factory. actively build a manufacturing system and supply chain system that meets the requirements of international companies. In addition, the 5G network will increase the construction scale of the data center. It is predicted that the compound growth rate will reach 28.7% in the past three years. By 2020, the market size of China's IDC service is expected to exceed 200 billion yuan. The company's newly developed IDC DC power products have begun to supply the data centers of the three major operators and large Internet enterprises.

Speed up the development of new energy business and form two-wheel drive effect

Since the beginning of this year, the investment in power grid construction has been accelerated, leading to the vigorous development of photovoltaic, energy storage and electric power new energy industries. The smart energy industry, which has been laid out by the company in previous years, will reach the harvest stage. The new charging piles, photovoltaic inverters and the electronic control system of new energy vehicles that have been developed will quickly enter the new energy market after obtaining customer certification. Greatly improve the company's current business level. Specially pointed out that the company has a strong technical strength in the field of hydrogen energy electronic control, hydrogen fuel DC/DC power supply customer coverage rate of 80%, market share of nearly 50%, at the same time, the company's new layout of add-on series of products, in order to meet the further needs of future add-on vehicles for system controllability and economy, and laid a solid foundation for subsequent business expansion. In other business, the company's Xiongan intelligent photovoltaic shed and other smart energy demonstration projects successfully landed, and achieved good social effects. In addition, the company's traditional EPS and intelligent evacuation system products are widely used in rail transit, airports and other public infrastructure fields, such as Daxing International Airport, Beijing Metro, Shenzhen Metro projects and other major projects.

Profit forecast

Considering the acceleration of 5G construction this year, the pulling effect of the communication power business on the company has been significantly improved. at the same time, the company's smart energy business has grown steadily. The business in the field of new energy vehicles is about to enter an explosive period, and the company's performance reversal has been established. and began to enter the upward trend, we are optimistic about the company's current transformation planning and the development momentum in the next two years. It is estimated that the company's revenue will reach 1.695 billion yuan and 2.372 billion yuan in 2020-2021, with a corresponding net profit of 7306 million yuan and 125 million yuan.

Risk hint: 5G network construction is not as expected, and new energy business progress is not as expected.