A-share subscription | First Flight New Energy (301658.SZ) opens for subscription, ranked tenth in global PV inverter market shipment in 2023.

On March 24, Shouhang New Energy (301658.SZ) began its subscription, with an offering price of 11.8 yuan per share, a subscription limit of 7,500 shares, a P/E ratio of 15.88, and it belongs to the Shenzhen Stock Exchange ChiNext Board. Guotai Junan Securities is its exclusive sponsor. According to the prospectus, Shouhang New Energy is a high-tech enterprise specialized in the research, development, production, sales, and service of new energy power equipment, focusing on the conversion, storage, and management of CECEP Solar Energy power. Its core products include grid-connected inverters for photovoltaics, energy storage inverters for photovoltaics, and energy storage batteries. The company's suppliers include Baohui Electronics, Xinchengyuan, Contemporary Amperex Technology, REPT BATTERO, Yihe Xing, Shiping International, Yiweidongli, Yuwatech, Texas Instruments, Liwang Gaoke, and Yingzhen Technology. In terms of financials, in 2021, 2022, and 2023, the company achieved operating revenues of approximately 1.826 billion yuan, 4.457 billion yuan, and 3.743 billion yuan respectively. The net profits were approximately 187 million yuan, 849 million yuan, and 341 million yuan respectively. In 2023, the company's net profit decreased year-on-year, mainly due to the significant decrease in electricity prices for European residents as the impact of the Ukraine crisis eased in 2023. By the end of 2023, electricity prices in some European regions had dropped by more than 50% year-on-year. In addition, the slowdown in demand in the residential and commercial energy storage market due to cyclical industry and policy fluctuations affected the income and profitability of the company's high-profit energy storage businesses (energy storage inverters, energy storage batteries). In 2023, the proportion of the company's energy storage business income decreased from 58.78% in 2022 to 43.77% in 2023. The company continued to invest in the research and development of new products such as centralized energy storage systems and micro-inverter systems, leading to a significant increase in R&D expenses. The company's domestic revenue increased from 10.39% in 2022 to 24.43% in 2023. With the intensifying competition in the domestic photovoltaic storage market, the domestic sales gross margin for grid-connected inverters decreased year-on-year in 2023.