The Zhitong Finance App learned that Tianfeng Securities released a research report saying that it was the first$NaaS Technology (NAAS.US)$According to the “buy” rating, revenue for 2023-25 is estimated to be 55/25.1/494 billion yuan. Considering that its future compound growth rate is expected to be significantly higher than that of comparable overseas companies, and that it is deeply involved in the domestic charging market, there is a certain scarcity for the first stock of charging services in China, with a target price of 13 US dollars.

Energy Chain Smart Electronics is the first charging service company in China. The number of new energy vehicles owned in China is rapidly expanding. Currently, it may be on the eve of rapid growth in the domestic charging service market. Relying on digital capabilities to provide third-party services to the entire industry, the charging solution business is expected to continue to rise; while the virtual power plant business and charging robots may become important competitive advantages for the company in the future.

Energy Chain Smart Electronics manages China's largest third-party charging network. The company was founded in 2019 and has been actively building one-stop solutions for the new energy charging industry since its establishment. In June 2022, the company went public on the NASDAQ. The company grasps new energy opportunities and is committed to providing online and offline charging solutions and non-electric value-added services for charging operators and electric vehicle owners, and building a three-dimensional charging network ecosystem with “industry connectors”.

Tianfeng Securities believes that Energy Chain Smart Electronics provides a “connection as a service” to create a one-stop solution, and that its diversified business has built a three-dimensional charging network ecosystem, ahead of its peers. In its view, there are three main highlights:

Highlight 1: The charging operation service market continues to expand, the company has a mature solution matrix and a wide range of customers

At the industry level, domestic new energy vehicles are rapidly penetrating, continuously increasing consumer charging demand, and the rapid increase in public charging volume has driven the continuous expansion of the charging operation service market. The market is expanding and is also highly decentralized, and leading charging service providers have ushered in opportunities for integration. The company's one-stop solution covers the entire life cycle of charging operations. Currently, the company's one-click operation and maintenance has covered 3,000 charging stations in 300 cities, providing maintenance services for more than 20,000 parking spaces. On the customer side, the company's full-life cycle service plan brings high customer stickiness and has covered high-quality enterprises such as Ideal Auto, AITO Auto, GCL Energy, and Telai.

Highlight 2: Efficient integration of “endogenous+epitaxial” resources, consolidating leading position and strengthening optical storage and charging layout

In terms of “endogenous” resources, the energy chain serves tens of thousands of enterprise customers and hundreds of millions of automobile users to build a digital platform for the Energy Internet of Things. The company relies on the energy chain to efficiently transform customers. With gas station resources within the energy chain, it can quickly reach local state-owned enterprises that control high-quality land resources. As of June 2023, the company has reached in-depth cooperation with state-owned enterprises such as Luzhou Energy Investment and State Grid Changzhi to jointly build an urban NEV charging and switching facility service system to accelerate the replacement of old and new kinetic energy and the development of the new energy industry. In terms of “outreach” resources, the company signed a cooperation agreement with Haiboschuang in January 2023 to jointly fund the establishment of the energy chain Haibo and lay out diversified energy storage solutions; Haibo Sichuang is a leading domestic energy storage system solution service provider, actively lays out independent energy storage power plants, and deeply integrates wind power, photovoltaics, energy storage with the power grid, and has already launched a multi-energy complementary demonstration project. In June 2023, the company acquired 89.99% of the shares of Hong Kong Optoelectronics through its subsidiary Data Auto and entered the field of distributed solar power plants in Hong Kong.

Highlight 3: Lay out virtual power plants and charging robots, innovate business+go overseas to start a second growth curve

In terms of virtual power plants, the company is already eligible to apply for virtual power plant load aggregators in some regions. In June 2023, the company officially released virtual power plant products and signed strategic cooperation agreements with Beijing Qingneng Internet Technology Co., Ltd. and Beijing Jingneng International Integrated Smart Energy Co., Ltd. for in-depth cooperation in power transaction decision optimization, artificial intelligence analysis and prediction, resource aggregation modeling and optimized scheduling, distributed photovoltaics, energy storage and green power transactions. In terms of automatic charging robots, the company has independently developed automatic charging robots. As of June 2023, the company has reached cooperation with Light Orange Era and Extreme Fox respectively, focusing on smart electric mobility and smart energy supplementation technology applications. On the overseas side, the company has set up a European headquarters in the Netherlands to discuss cooperation matters with the governments and energy companies of the United Arab Emirates, Oman, Saudi Arabia and other countries in the Middle East, set up an office in Singapore to deploy charging solutions, and negotiate cooperation opportunities with major Japanese energy companies.

Since the beginning of 2022, a series of policy documents have been issued at the national level to support virtual power plants. Among them, new energy vehicles, vehicle network linkage (V2G), and electric vehicle charging equipment have been mentioned. At the local level, Jiangsu, Shanghai, Hebei and other places currently have pilot projects for virtual power plants. Meanwhile, Beijing, Zhejiang and other places have also issued corresponding planning documents to speed up the construction of virtual power plants.

Using charging stations as the core scenario, the Energy Chain Smart Electric Virtual Power Plant efficiently aggregates distributed load resources such as electric vehicles, charging piles, energy storage facilities, distributed photovoltaics, etc. through the cloud to form a controllable management unit, and uses flexible optical storage and charging management, intelligent scheduling, energy control, etc., to participate in power market transactions, respond to grid scheduling needs, help charging stations reduce energy costs, and promote the healthy development of the industry while also participating in the construction of new power systems.

Recently, Nengchain Smart Electronics released its unaudited financial report for the first quarter of 2023: the company's net revenue was RMB 36.2 million (US$5.3 million), an increase of 150% over the previous year.

The data also shows that in the first quarter, the energy chain smart electricity charged was 1,023 million kilowatts, accounting for 21% of the country's public charging capacity. The total transaction volume was 990 million yuan (144 million US dollars), up 112% and 107% year-on-year respectively; 55,000 charging stations were covered, and 575,000 charging guns were connected, up 67% and 84% respectively over the same period last year.

Energy Chain Smart Electronics provides one-stop services for the entire industry chain, including charging station site selection consultation, EPC engineering, operation and maintenance, energy storage, photovoltaics, virtual power plants, automatic charging robots, etc., to improve industrial efficiency through digital technology and artificial intelligence.

Furthermore, the company has received great attention from market value investors. According to the company's recent F1 documents to the SEC, Dr. Zheng Zhigang, Zhongyu Group (00985), and several other investment institutions and investors intend to jointly purchase a total of 3.5 million American depository shares offered in this offering.

According to CIC (Insights Consulting) data, it is estimated that the market size of charging station energy storage, EPC and charging services will reach 1.78 trillion yuan in 2030, with a broad market space.