Optimistic about photovoltaic inverter institutions buying KSTAR

Shenzhen Stock Exchange’s public information showed that KSTAR was bought by four agency seats yesterday, with a total net purchase of 44.51 million yuan, accounting for 42.62% of the total turnover of the day, and a net sale of 1.5 million yuan by a selling agency. Accounted for 1.44% of the total turnover of the day. Although the Shanghai Composite Index fell 1.37% yesterday, Kstar was up 7.60%.

KSTAR is a leading provider of uninterruptible power supply (UPS) in China. It is mainly engaged in the R&D, production, sales, and supporting services of UPS and its matched valve-regulated sealed lead-acid batteries. Its UPS series products cover large, medium, and small power levels and have been certified by Theil, FCC, and CE. The company's sales in 2010 reached 667 million yuan, and its products have been exported to more than 60 countries and regions. Among local companies, sales ranked first. At the same time, the company is one of the industry standard setters in the UPS industry and participates in the preparation and formulation of a number of new standards in the industry, and has a certain level of industry voice. In the first half of the year, KSTAR reached an operating income of 4263.187 million yuan, an increase of 60.60% year-on-year, and a net profit of 37.7511 million yuan, an increase of 4.73% year-on-year. The profit growth rate is much lower than the revenue growth rate. Although gross profit margin decreased from 31.15% in mid-2010 to 23.67% in mid-2011. However, the agency believes that in the second half of the year, with the adjustment of the company's UPS product structure and the correction of raw material prices, the company's gross profit margin is expected to rise steadily.

At the same time, the agency believes that the company's PV inverters have great potential. PV inverters are expected to begin to contribute profits in the second half of the year. The company has already put into production 1.5K-500K full range of solar inverter products. During the reporting period, the company has obtained orders for 45 MW inverter products. In the first half of the year, PV inverter contributed RMB3.9188 million to the company's operating income, gross margin reached 38.77%, and net profit was RMB-3.4204 million. With the expansion of production scale, it is expected that the gross profit margin will be over 50%. In the next two years, the market capacity of domestic PV inverters will be approximately RMB 1.5 billion. With the reduction of power generation costs, the increase is expected to double after 2012, and the ratio of grid-connected power is expected to increase rapidly. The capacity of photovoltaic inverters is expected to reach 3 to 5 billion yuan. Institutional analysis believes that if the company can occupy 10% of the domestic market share, regardless of exports, the company is expected to receive 3-5 billion in this area of ​​income, photovoltaic inverter performance potential.

In addition, yesterday's list includes a large group (601,258 stocks), a river curtain wall (601,886, stocks), brother technology (002,562 shares), and Li Peng shares (002,374 shares). According to the Shanghai Stock Exchange's public trading information, the huge group was sold by 151 million yuan in total by four sales agency seats yesterday, accounting for 31.36% of the total turnover of the day. The rivers and rivers walls were purchased by the two buying agencies in total 7.11 million yuan, accounting for 10.43% of the total turnover of the day; the total sales of the two agencies sold net 18.94 million yuan, accounting for 2.78% of the total turnover of the day. According to Shenzhen Stock Exchange’s public trading information, Brother Technology’s total net purchase of 53.38 million yuan by two buy-in agencies, which accounted for 21.31% of the total turnover of the day, and net sales of 60.84 million yuan by the two sales agencies. 24.33% of the total turnover of the day. Li Peng shares were bought by a buy-in institution with a total net purchase of 1 million yuan, accounting for 1.98% of the total turnover of the day; total sales of the three agencies sold net of 13.77 million yuan, accounting for 27.3% of the total turnover of the day.