Company Profile
Jiangsu DayBright Intelligent Electric Co.,Ltd. is a high-growth high-tech enterprise with independentinnovation ability in the field of distribution network automation. Since its foundation, the Company hasalways hammered at the technical research, product development and production service in terms ofthe safety, stability, automation and informatization, etc. of distribution network. DayBright Intelligentmainly operates the products including intelligent medium-voltage switchgear, distribution automationterminals, substation automation system, complete set of low-voltage electric devices, etc （Source:company’s official website）
Precise strategic positioning, building quality distribution network system and equipment suppliers. The company was founded to become the provider of intelligent distribution network system solutions andequipment, focuses on providing users with distribution automation terminal, intelligent mediumvoltage switchgear, transformer substation automation system and low voltage electrical equipment forthe intelligent distribution network equipment, has now completed the product line.
The integration of production and research has helped to achieve high profits for high-tech products :
Gross profit rates of smart distribution network high-tech products are over 50%, the revenue growth ofdistribution automation terminal and intelligent medium voltage switch equipment operating over140%.
The company public issued 27 million shares, raised CNY 271 million to produce power distributionnetwork automation product extension and micro grid control system. It improves the productioncapacity and the market of small and distributed power generation micro-grid control system in the newbusiness area.
Earnings forecast and investment recommendations: We expect the company will contribute CNY60/66/75 million net profit for 2017-2019 respectively, EPS at CNY 0.55/0.60/0.71, implying40.9x/37.5x/31.8x PE. Initial coverage with “BUY” rating.
Potential risks：1） The investment scale of domestic power industry will be unstable; 2）risk of marketcompetition intensifies
