Next Tuesday (December 19), “Aero Energy”, a company listed on the Science and Technology Innovation Board, asks for quotations.

Aero Energy (688717): The company mainly provides overseas customers with photovoltaic energy storage inverters, energy storage batteries and grid-connected inverters, which are used in distributed photovoltaic energy storage and grid-connected fields. The company achieved operating income of 389 million yuan/833 million yuan/4.612 billion yuan in 2020-2022, YOY was 0.12%/114.00%/453.86% in that order, with a compound annual growth rate of 128.09% in three-year operating income; realized net profit of 33 million yuan/63 million yuan/1,134 million yuan; YOY was 24583.25%/90.16%/1703.61%, and the compound annual growth rate of net profit over three years was 1938.07%. In the latest reporting period, from January to September 2023, the company achieved operating income of 4.07 billion yuan, an increase of 48.65% over the previous year, and realized net profit of 1,018 billion yuan, an increase of 90.65% over the previous year. According to preliminary forecasts, the company expects to achieve net profit of 1,050 billion yuan to 1,150 billion yuan in 2023, which is basically the same as the same period last year.

Investment highlights: 1. By focusing on the European household energy storage sector to create a differentiated competitive advantage, the company has now become one of the important suppliers of household energy storage systems and products in the world; due to energy security considerations, overseas household storage demand still has a lot of room for growth, or may benefit the company's future development. Since its establishment, the company has continued to focus on household energy storage technology, and is one of the first enterprises in the industry to enter the field of household energy storage; launched the first energy storage inverter in 2013, began research and development in 2016, and introduced energy storage batteries to the market in 2018, then became one of the first domestic manufacturers to achieve collaborative R&D and mass production of energy storage inverters and energy storage batteries; at the same time, the company successfully conquered the European market with the highest demand for household energy storage in the world, but with a high entry threshold and long certification cycle, and established a relatively complete marketing network and product marketing system., in the UK and the Netherlands , Germany and other places have all set up subsidiaries; during the 2020-2023H1 reporting period, sales revenue from Europe was over 70%. In recent years, along with the continuous progress of the transformation of the energy structure in Europe and other regions to clean energy such as photovoltaics, and the continued release of favorable policies, compounded by the intensification of geopolitical conflicts, the European energy crisis led to a sharp rise in electricity prices during the period, and European household energy storage demand showed a relatively rapid growth trend. Due to energy security and other considerations, it is expected that household storage deployment in the European market will continue, benefiting enterprises that already have a first-mover advantage. According to the company's prospectus, in 2021, the company's market share in the global household energy storage battery sector reached 4.1% and the global household energy storage inverter field reached 5.1%, making it one of the world's important providers of household storage systems and products. 2. Based on the product ecosystem established in the European household storage sector, the company actively participated in technological innovation relating to “virtual power plants”, and may be expected to benefit from the advancement of future power market-based reforms. Electricity market-based reform has become one of the trends in the development of the world power industry; the megawatt distributed optical storage interconnection system developed and implemented by the company has been successfully applied to the British power FM scenario. Currently, more than 10,000 photovoltaic energy storage systems have been installed in Birmingham, Bristol, Leeds and other regions. Among them, nearly 3,000 energy storage systems have participated in grid FM applications, forming a virtual power plant with a cluster capacity of about 8.6 MW to provide FM applications for the British power grid. Judging from technical indicators, the company already has a certain first-mover advantage; when the virtual power plant issues remote control instructions from the cloud-based virtual energy interconnection system, the power response delay can reach 0.092 seconds, and the response time is far lower than the UK National Grid FFR standard of 2 seconds, which can effectively solve the problems of energy management, response speed, and network source interaction supported by the regional distributed optical storage system. 3. During the reporting period, the company formed stable and good strategic partnerships with major ODM customers such as Hanwha Group, which is expected to achieve complementary advantages and win-win cooperation between the two sides. The company adopts the development strategy of “independent brand as the core, ODM model collaborative development”. Major ODM customers include world-renowned PV module suppliers such as Hanwha Group and Peimar Industries Srl. Take Hanwha Group as an example. The company provides Hanwha Group with energy storage batteries, inverters, and other products and technical support. On the one hand, revenue from Hanwha Group became a strong complement to the company's revenue. During the 2021-2023H1 reporting period, Hanwha Group entered the company's top two customer lists; on the other hand, the company can use the marketing service system and brand advantages built by Hanwha Group around the world to further expand its own sales scale compared to the company's revenue structure inclined towards the European market. Hanwha Group has a long-term presence in the US and other countries and regions, which favors the company's expansion Markets outside of Europe.

Comparison of listed companies in the same industry: Paineng Technology was selected in the field of energy storage batteries, and Hemai shares, Yuneng Technology, Goodway, Jinlang Technology, Sunshine Power, and Shangneng Electric were selected as comparable listed companies of Aero Energy in the field of inverters. Judging from the comparable companies mentioned above, the average revenue of comparable companies from the fourth quarter of 2022 to the third quarter of 2023 was 13.103 billion yuan, the comparable PE-TTM (arithmetic average) was 24.27X, and the gross sales margin was 34.08%; in comparison, the company's revenue scale was less than the average of comparable companies, but the gross sales margin was in the middle and high range of its peers.

Risk warning: There is still a possibility that companies that have begun the inquiry process will not be able to go public due to special reasons; company content is mainly based on the content of prospectus and other public information; there is a risk that the selection of listed companies in the same industry is not accurate enough; there may be interpretation deviations in the selection of content data. The specific risks of listed companies are shown in the text.