Analysis of the performance reports of listed photovoltaic inverter companies in the first quarter of 2017

The first quarter of 2017 has come to an end, and listed inverter companies have begun to release their own Q1 2017 financial reports. With the support of favorable national policies, what are their outstanding performances? The following is an inventory of the revenue status of several representative listed inverter companies in China.

Sungrow Power Supply

Sungrow Power Supply Co., Ltd. was established in 1997 and successfully listed on the Shenzhen Stock Exchange's Growth Enterprise Market in 2011 (stock name: Sungrow Power Supply, stock code: 300274). The company focuses on the research and development, production, sales and service of power electronic equipment such as solar photovoltaic inverters and wind power converters. As of 2010, it has become one of the largest solar photovoltaic inverter manufacturers in my country and one of the domestic wind power converter manufacturers with independent intellectual property rights.

The business scope includes but is not limited to: new energy power generation equipment, distributed power sources, power electronic equipment for new energy power generation projects, electrical transmission and control equipment, uninterruptible power supplies, energy storage power supplies, power quality control devices, etc.

In the first quarter of 2017, Sungrow achieved operating income of RMB 1.247 billion, a year-on-year decrease of 8.69%; net profit attributable to the listed company was RMB 129 million, a year-on-year increase of 6.59%. The company continued to maintain its position as the world's largest PV inverter shipment, with annual inverter shipments of 11.1GW, a year-on-year increase of 24.65%.

The performance in the first quarter of 2017 increased by 6.59%, which was basically in line with expectations. The integration of power stations drove the growth of the annual performance, and the profitability was basically stable. The implementation of the company's 10 billion industrial fund will accelerate the expansion of the company's new energy projects. The company has built a smart energy system of "new energy power generation + energy storage + new energy vehicles", completed the strategic layout of smart energy solutions, and will benefit deeply from the general trend of energy transformation in the future.

Costa

Shenzhen KSHIDA Technology Co., Ltd. was established in 1993 and successfully listed on the SME Board of the Shenzhen Stock Exchange in 2010 (stock abbreviation: KSHIDA, stock code: 002518). KSHIDA specializes in the research and development, production and sales of uninterruptible power supplies (UPS). Its main products are uninterruptible power supplies (UPS) and matching valve-regulated sealed lead-acid batteries.

The business scope includes but is not limited to: UPS uninterruptible power supply, inverter power supply, EPS emergency power supply, solar inverter, solar controller, heat exchanger, inverter PLC programmable controller, electronic products, lightning protection products, hardware products, communication equipment, computer network equipment, etc.

In the first quarter of 2017, KSTAR achieved operating income of 398 million yuan, a year-on-year increase of 16.53%; and achieved net profit attributable to the listed company's stock market of 51 million yuan, a year-on-year increase of 4.06%. The company's revenue growth was basically in line with expectations, and the growth of sales and administrative expenses was obvious. The two expense rates increased by 3.2 percentage points, resulting in a 1.8 percentage point decrease in net profit margin. The main reason for the increase in administrative expenses and sales expenses is the expansion of the company's business and increased investment in R&D and sales.

The competition of the company's UPS products is steadily increasing, and the charging pile module and photovoltaic inverter business are still expected to maintain rapid growth. The charging pile business is expected to expand rapidly with cost advantages, and the inverter major customers will achieve breakthroughs.

Easy

East Group Co., Ltd. was established in 2001 and successfully listed on the Shenzhen Stock Exchange's Growth Enterprise Market in 2014 (stock name: East, stock code: 300376). East is mainly engaged in the research and development, production, sales and service of power electronic devices such as UPS. The company's main product is UPS, which is widely used in many industries with high requirements for power supply stability and continuity, such as information, communications, electricity, finance, transportation, medical care, aerospace, etc.

The business scope includes but is not limited to: industrial energy-saving and power quality control systems, new energy vehicle charging piles and supporting equipment, photovoltaic modules, photovoltaic inverters, lithium batteries, composite energy storage systems; solar power generation systems, photovoltaic thermal power stations, new energy vehicle charging station construction and operation, etc.

In the first quarter of 2017, YST achieved operating income of RMB 884 million, a year-on-year increase of 52.22%; and achieved a net profit attributable to the listed company of RMB 59 million, a year-on-year increase of 68.01%.

The domestic photovoltaic ground power station grid connection is accelerating, and industrial rooftop projects and poverty alleviation photovoltaic projects are growing explosively. Driven by the comprehensive industrial and technological advantages of its own photovoltaic products and system integration, the company's photovoltaic power station development, construction and operation have been rapidly expanded, achieving high revenue growth. The company is a leader in domestic UPS power supply. Compared with foreign manufacturers, its products have cost advantages. And it has strong brand and service advantages in high-end power equipment. In June this year, Shenzhen Metro Line 11, which is provided with uninterruptible power supply systems for weak electronic systems by the company, was officially opened for trial operation, which is conducive to expanding the domestic and foreign high-end power equipment market; traditional business revenue has maintained steady growth and maintained its leading position in the industry.

DreamNet Rongxin

Mengwang Rongxin Technology Group Co., Ltd. was established in 1998 and successfully listed on the Shenzhen Stock Exchange SME Board in 2007 (stock abbreviation: Mengwang Rongxin, stock code: 002123). The company is mainly engaged in the design and manufacturing of energy-saving high-power power electronic equipment; the company's products include but are not limited to: high-voltage dynamic reactive power compensation device (SVC), intelligent gas emission device (MABZ), power filter device (FC) and high-voltage frequency conversion device (HVC).

The business scope includes but is not limited to: research and development, production, sales and after-sales maintenance of reactive power compensation equipment, power transmission and transformation equipment, explosion-proof electrical equipment, variable frequency speed regulation equipment and their control systems; production and sales of power electronic components and instruments; import and export of power electronic products and technologies.

In the first quarter of 2017, the company achieved total operating revenue of 581 million yuan, a year-on-year decrease of 2.61%, and achieved a net profit attributable to the listed company of 40.1 million yuan, a year-on-year decrease of 43.95%.

The decline in gross profit margin and the reduction in subsidies affected the performance in the first quarter of this year. In the first quarter of 2017, the company's operating income remained stable, and the net profit attributable to the listed company's stock market declined significantly. The decline in profits was mainly due to the low gross profit of the key traffic business and the reduction in government subsidies. On the other hand, the company's intelligent traffic business is still in its early stages and has delivered services to hundreds of financial and Internet companies. With the rapid growth of the intelligent traffic business, the company's performance is expected to gain new growth points.

Clou Electronics

Shenzhen Clou Electronics Technology Co., Ltd. is a key high-tech enterprise of the National Torch Program recognized by the Ministry of Science and Technology. It was established in 1996 and specializes in the research, development, production and sales of power management systems, electronic energy meters, standard instruments and meters, and software products. In March 2007, the company was listed on the Shenzhen Stock Exchange (stock name: Clou Electronics, stock code: 002121).

Kelu Company has dozens of national patents and software copyrights, and all its products have independent intellectual property rights, covering four major categories: power automation systems, electronic energy meters, standard instruments, and power operation power supplies. Its products include a full range of high, medium, and low voltage inverters, low voltage reactive power compensation devices, multi-function meters, load control terminals, etc.

In the first quarter of 2017, the company achieved revenue of RMB 710 million, a year-on-year increase of 72.73%; and achieved a net profit of RMB 47 million attributable to the listed company's stock market, a year-on-year increase of 382.30%. The high growth in net profit was mainly due to the company's transfer of its equity in Fenyi County Luhui Photovoltaic Power Generation Company.

In the first quarter of 2017, the company's main business developed steadily, and the business expansion of new energy business, intelligent manufacturing, smart warehousing, integrated circuits, smart cities, etc. achieved good results. The transfer of equity of the subsidiary Fenyi County Luhui Photovoltaic Power Generation Co., Ltd. had a positive impact on the company's performance. The company currently has a large investment in new energy vehicles and charging station operations, energy storage and other fields. The profits realized in emerging fields have been realized in the first quarter of 2017, and the company has a good future prospect.