EPC business icing on the cake business inflection point appeared inverter

2013-2014 inverter to the good long-term industry. By the end of 2012, China's domestic market will show a variety of planning a high growth (more than 50% annually), the National Network personally break grid barriers, Europe is expected to strengthen domestic policies against double hedge expected, so the demand can be expected.

inverter with charger business inflection point appeared. After two years of 2011-2012 years of industry price war, competitors began to shrink. Gross margin decline bottomed out in 2013Q2, as demand starts shrinking supply; 2013Q2 is the industry's long-term average inflection point, margins stabilized, demand the release of the long-term average upward.

EPC business made ​​good progress and is a strong complement to company performance. 2012, the sun power and Jiuquan Chaoyang New Energy Co. Ltd. and Sanyo new energy power generation EPC contract signed, for a total amount of 800 million RMB, 100MW power plant. Three Gorges New Energy Co. and sun power will inject two project companies.

First, the project company to obtain local approval of the NDRC Lutiao and grid companies, and then began construction ofphotovoltaic power plants, and network delay to avoid risk. Jiuquan, Gansu and send and regional energy and strong. Revenue recognition, the Company recognized income progress, ensure that the company and its shareholders. Business Net profit margin of 7% -10%, resulting in 5600-8000 Wan amount of net profit, it is advantageous to ensure this year's performance goals.

Investment advice: Buy-A investment grade, 6-month target price of 22.00 yuan. We expect 2013 revenue growth of 2015 were 102%, 49%, 38%, net profit growth rate was 269%, 51%, 21%, growth highlights; first "Buy-A" investment rating, 6-month target price of 22.00 yuan, equivalent to the dynamic price-earnings ratio in 2013 25.