The company focuses on energy and lighting, while laying out new areas around the strategic layout of "2roomX".

The company's main business is based on energy products and lighting products, including new energy transformers (photovoltaic step-up transformers + photovoltaic inductors) and industrial control transformers; lighting products include lighting power supplies and lighting lamps; at the same time, we actively layout new application fields such as vehicle power supply, vehicle inductor, communication power supply and energy storage. In the first half of 2023, the company achieved operating income of 1.574 billion yuan, year-on-year + 13.38%; net profit of 90.23 million yuan, + 6.59% year-on-year; of which Q2 realized operating income of 935 million yuan, year-on-year + 24.28%, month-on-month + 46.20%, and net profit of 71.2 million yuan, year-on-year + 43.24%, month-on-month + 274.19%, the company's performance maintained a rapid growth trend.

New energy business: binding Sunshine Power supply and other core customers, products gradually expand from core components to complete sets of products. The company's new energy transformer products are mainly high-frequency magnetic devices for photovoltaic inverters and step-up transformers for grid-connected photovoltaic power generation. The company's new energy transformer products are bound to core customers such as sunshine power supply, while breaking into photovoltaic markets such as the United States, Japan, the European Union and so on. In recent years, the company has gradually expanded from core parts to complete sets of products. Since the beginning of this year, the company has successively developed photovoltaic / energy storage box substations, integrated machines and other new energy products for customers, which have achieved small batch shipments, laying the foundation for growth in the next few years.

The data center Panamanian power supply is supplied in small quantities, and the lighting business is developing steadily. The company's industrial control transformer is mainly used in energy-saving, environment-friendly equipment, as well as medical, security, data center and other equipment.

Among them, the Panamanian power supply of the company's data center has completed the relevant testing, and has achieved small batch supply. Compared with the traditional UPS scheme, Panama has the advantages of high power efficiency, small footprint and fast construction. In terms of lighting business, the company's main products are lighting power supplies and lamps and lanterns, forming long-term and stable cooperation with international well-known enterprises.

Investment suggestion: the company's return net profit from 2023 to 2025 is estimated to be 344,444 million yuan respectively, compared with the same period last year, + 25.7%, 38.9%, 32.8%, and the PE corresponding to the current stock price is 22.7, 16.3, 12.3.

The company deeply binds downstream core customers, actively develops new products, rapidly increases production capacity, covers for the first time, and gives a "buy" rating.

Risk hint: the installation of ground photovoltaic power station is not as expected; the share of core customers is declining; the expansion of new customers is not as expected.