The performance of Risen was better than expectation, entering into the Ningbo distributed demonstration

Guotai Junan Securities Company maintained the company’s outperform rating. The Company’s reporting performance was a little better than expected. In the first half year of 2013, the company’s revenue growth was 18.54 percent, the net profit growth was 1924.63 percent and EPS was 0.05 Yuan. Affected by some factors, such as in the first half of the year, the company was being built the production capacity of delivery and the photovoltaic cell prices bottoming out, the gross profit rate of the company’s battery components recovered to more than 20.43 percent, which was better than expected. Meanwhile, the power transfer and the operational business made a contributed revenue of 253 million Yuan, the gross profit rate was 9.73percent, becoming the second largest source of income.

Energy-saving, China Guangdong Nuclear Cooperation and the distributed model will be helpful for the company to promote the percentage of domestic sales. The company will not only go on cooperating with energy-saving on the aspect of power plant, but also has signed a 140 MW power plant agreement with China Guangdong Nuclear Cooperation recently. Cooperated with CGNPC, and Ningbo Electricity, the new area project of Ningbo Hangzhou Bay started to become one of the eighteen distributed demonstration zones that were firstly launched by the Energy Bureau. We expect that in latter period, the company can fully benefit from the domestic large-scale power plants and distributed project growths, and the capacity utilization is guaranteed.

The industry and company risk is relatively lower. Currently, the industry factors affect the company (EU double reverse, the domestic distributed policy) are all better than expected, the company is planning to a major asset reorganization suspension. We believe that the asset reorganization may bring to the company’s performance picked up additional momentum, which will help to enhance the value of the company.


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