, 2023 is already halfway through, and the stock market is fluctuating, with some stock prices soaring and others falling to the bottom. In this turbulent market, today we will focus on a bear stock that has attracted much attention-Yuneng Technology.
According to the latest data, from January 3 to June 30, 2023, the stock price of Yuneng Technologies fell by 53.56%, ranking 29th in the decline list of Shanghai and Shenzhen stock markets. If ST concept and delisting concept stocks are excluded, Yuneng Technology is the biggest decline in normal stocks.
By the time of writing, the stock price had fallen to 195.88 yuan. Looking back on June last year, Yuneng Technology attracted wide attention when it was listed on the Science and Technology Innovation Board, and its positioning in the new energy field of photovoltaic power generation made people place great expectations on it. The stock price soared until it hit a record high of 726.50 yuan on August 29 last year. However, since the stock price peaked in August 2022, Yuneng Technology has entered a bear market stage. What happened during the change from "Britney Spears" to "Mrs. Cow"?
Some people may doubt whether the company's performance is not good, but in fact, the performance data of Yuneng Technology is quite good. In 2022 and the first quarter of 2023, the company's performance has doubled.
As one of the leading micro-inverter enterprises, Yuneng Technology is mainly engaged in the research and development, production and sales of component-level power electronic equipment in distributed photovoltaic power generation system. The company's products include micro-inverters, intelligent control switches, energy communicators and household energy storage systems. According to the data of the prospectus, micro-inverters are the company's main source of revenue. From 2019 to 2021, the revenue of micro-inverters is 345 million yuan, 412 million yuan and 512 million yuan respectively, accounting for 90.41%, 84.44% and 77.67%.
In 2022, affected by the continuous growth of global demand for distributed photovoltaic power generation, Yuneng Technology has abundant orders and excellent performance. The annual operating income reached RMB 1.338 billion, with a year-on-year increase of 101.27%; the net profit attributable to the shareholders of the listed company was RMB 361 million, with a year-on-year increase of 250.3%. In 2023, the performance of Yuneng Technology continued to maintain a high growth trend, achieving a total operating income of 436 million yuan in the first quarter, an increase of 151.05% year-on-year; the net profit attributable to shareholders of listed companies was 118 million yuan, an increase of 282.91% year-on-year.
From the perspective of industry development, Yuneng Technology is still in a high growth stage, and the field of micro-inverters still has broad prospects for development. As far as Yuneng Technology itself is concerned, the company's profitability is relatively stable, and the development momentum of each business sector is good. In 2022, the weighted return on equity was 18.02%, the gross interest rate was maintained at about 40%, and the net interest rate was 26.91%, which were relatively stable. In addition, the energy storage business of Yuneng Technology has also entered the volume stage, which is expected to become a new growth point of performance. Previously, Yuneng Technologies mentioned on the interactive platform for investors that the company's AC coupling household storage products have been supplied to the United States, providing opportunities for the company to open up new growth space.
It has also made some achievements in research and development: the inverter products are 2 to 3 years ahead of the same industry in China; the self-developed special control and algorithm ASIC chips for intelligent control switches can improve product integration and reliability, and the shipment volume ranks first in China; In terms of energy storage products, the layout of products has been completed from portable mobile energy storage, household energy storage to industrial and commercial energy storage systems.
In addition to good performance, Yuneng Technology has also made some important achievements in research and development. The inverter products of the company are in the leading level of the same industry in China, which can lead to 2-3 years. The special control and algorithm ASIC chips for intelligent control switches developed independently have improved the integration and reliability of the products, and the shipment volume is the first in China; In terms of energy storage products, the company has completed the product layout from portable mobile energy storage, household energy storage to industrial and commercial energy storage systems.
Based on the above, the author is more confused, why is the stock price of Yuneng Science and Technology "depressed"? Many investors may be equally puzzled and confused.
One of the investors suggested that the company take measures to stabilize the stock price, such as stock repurchase, to protect the interests of small and medium-sized investors. The company replied: "Thank you for your attention and suggestions to the company." Later, another investor asked Ling Dong and Luo Zong about their positive response to the decline in stock prices. However, the reply of Yu Neng Science and Technology is still relatively official: "The fluctuation of stock price is affected by many factors, and the company is currently operating normally and orderly."
The performance is good, but behind the decline in stock prices is..
After a series of research, the author analyzed two reasons for the decline of stock prices.
The first is to face the risk of overseas operation. According to the data by the end of 2022, 97.39% of Yuneng's revenue comes from overseas markets. At the recent performance presentation, some investors asked about the demand in the European market, and Yuneng Technology responded: "The demand for the photovoltaic market in Europe, especially for household photovoltaic, is still strong.". Micro-inverters began to develop rapidly last year, first benefiting from the natural growth of distributed photovoltaic systems, including household roof and commercial roof photovoltaic systems. At the same time, the penetration rate of micro-inverters instead of series inverters is also increasing. Microinverters have many advantages, one of which is their flexibility and convenience. In addition, Yuneng Technology also said: "Compared with the US market, we are more suitable to explore the European market, because the demand in Europe is more diversified and fragmented."
In addition, in the annual report of 2022, Yuneng Technology also mentioned the risks faced by overseas sales: "If there are trade frictions and disputes related to micro-inverters, intelligent control switches and other products in the company's main overseas markets, or trade and tariff policies that are not conducive to the import and export of the company's products due to changes in the political and economic environment.." This will have a negative impact on the company's overseas business development and overseas market sales. In the first half of this year, Europe put forward the proposal of net zero industry, which may have a certain impact on the stock price of Yuneng Technologies.
Secondly, the competition in the photovoltaic industry at home and abroad is intensifying , which is a challenge for Yuneng Technology. In the overseas market, European and American countries are reshaping the photovoltaic industry chain, and the strength of overseas photovoltaic enterprises can not be ignored. As a leading company in the micro-inverter industry, Enphase, a listed company in the United States, has a revenue of $2.331 billion in 2022, which is 12 times the revenue of Yuneng Technologies in the same period. Through localized services and publicity, Enphase is more likely to gain the recognition and trust of local customers, and has a strong competitive advantage in terms of sales channels and customer resources.
Domestically, Hemai shares have also begun to enter the field of micro-inverter products, and Sunshine Power also plans to enter the field. Sunshine Power said in early July 2022 that it would consider launching micro-inverter products according to market demand. The involvement of these domestic enterprises has further intensified the competition in the industry. The uncertainty of
overseas market operation and the intensification of domestic market competition may be one of the reasons why Yuneng Technologies'share price continues to fall.
In addition, it should be noted that despite the rapid growth of Yuneng Technologies'performance, the inventory value has also soared sharply, and the operating cash flow has been negative continuously. As of the first quarter of 2022 and 2023, the inventory amount of Yuneng Technologies reached 1.304 billion yuan and 1.674 billion yuan respectively, up 633.50% and 627.46% respectively. According to the annual report of 2022, this is mainly due to the company's expectation that the rapid development of the market requires an increase in stock.
In addition, the net cash flow from operating activities of Yuneng Technologies in the first quarter of 2022 and 2023 was-323.2 million yuan and-430.1 million yuan, respectively. This was mainly due to an increase in the purchase of raw materials, as explained in the annual report.
In any case, 2023 has entered the second half of the year, and we need to continue to pay attention to the future performance of Yuneng Technologies to see how it meets challenges and explores new growth opportunities. After all, the stock market is full of uncertainty, and investors need to make prudent decisions and consider risks and returns in many ways. It is hoped that Yuneng Technologies will find new impetus for development in the future and achieve better performance and stock price recovery.
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