The company announced that it has received the “Approval of Jiangsu CITIC New Energy Technology Co., Ltd. to Register Issuance of Shares to Specific Targets” issued by the Securities Regulatory Commission. The fixed increase plans to raise no more than 1.101 billion yuan in capital from domestic natural persons and institutional investors, and the number of shares issued is 60.7386 million shares.

After deducting the issuance fee, the net capital raised is to be invested in the following projects: PV tracking system parallel driver capacity expansion project, Susong Zhongxibo New Energy Technology Co., Ltd. photovoltaic supporting industrial park project, western tracking bracket production and demonstration base construction project, R&D laboratory construction project, and supplementary working capital project.

The initial plan for this increase was published in November '22 and has been revised several times. After a slight loss of 1 million yuan in net profit to mother in the mid-year report, the company's performance gradually stabilized. The 24-year report achieved revenue of 3.376 billion yuan, +75.73% year over year, and net profit to mother of 0.231 billion yuan, +136% year over year; the product structure was gradually adjusted to focus on overseas projects and tracking brackets, with ongoing orders of 6.669 billion yuan at the end of 24Q, of which the tracking bracket was about 5.549 billion yuan to guarantee the company's subsequent revenue and profitability.

We believe that the company has plenty of on-hand orders and contract liabilities, and has strong certainty in follow-up performance. At the same time, tracking support and overseas business account is relatively high, and overseas layout is deepened to ensure profit certainty. This fixed increase will further ease the company's cash pressure and expand high-quality production capacity. It is expected to achieve net profit of 700, 900, and 1.1 billion yuan in 24-26, corresponding PE of 18.1, 14.1, and 11.5 times, and is recommended.

Risk warning: intensifying industry competition, intensifying trade frictions, etc.