Key takeaway

The company released its 1H26 results. In 1H26, the company recorded operating revenue of RMB352mn, up 9.66% YoY; net profit attributable to shareholders of the parent company was RMB70mn, up 52.52% YoY; net profit attributable to shareholders of the parent company after deducting non-recurring gains and losses was RMB51mn, up 17.59% YoY. In 2Q26, the company recorded operating revenue of RMB200mn, up 13.78% YoY; net profit attributable to shareholders of the parent company was RMB48mn, up 61.79% YoY; net profit attributable to shareholders of the parent company after deducting non-recurring gains and losses was RMB30mn, up 6.07% YoY. Growth in service-based revenue from power forecasting drove a recovery in gross margin. Revenue from innovative products increased by 62.96% YoY, including a 57.27% YoY increase in revenue from electricity trading products. Growth in the company’s service-based revenue from power forecasting drove a recovery in gross margin. Innovative products and the electricity trading business maintained rapid growth, while AI adoption accelerated across all business lines. The dual “forecasting + trading” model is expected to further unlock opportunities in renewable energy asset operations. We maintain our “Buy” rating.

Event

On August 15, the company released its 1H26 results. In 1H26, the company recorded operating revenue of RMB352mn, up 9.66% YoY; net profit attributable to shareholders of the parent company was RMB70mn, up 52.52% YoY; net profit attributable to shareholders of the parent company after deducting non-recurring gains and losses was RMB51mn, up 17.59% YoY.

Quick Take

Operating performance maintained steady growth, while profitability and cash flow improved in tandem. In 1H26, the company recorded operating revenue of RMB352mn, up 9.66% YoY; net profit attributable to shareholders of the parent company was RMB70mn, up 52.52% YoY; net profit attributable to shareholders of the parent company after deducting non-recurring gains and losses was RMB51mn, up 17.59% YoY. In 2Q26 alone, the company recorded operating revenue of RMB200mn, up 13.78% YoY; net profit attributable to shareholders of the parent company was RMB48mn, up 61.79% YoY; net profit attributable to shareholders of the parent company after deducting non-recurring gains and losses was RMB30mn, up 6.07% YoY. During the reporting period, the company’s gross margin reached 63.70%, up 2.33 pcts YoY; net cash flow from operating activities was RMB20mn, compared with RMB-2mn in the same period last year. Net profit attributable to shareholders of the parent company grew faster than its adjusted counterpart. This was mainly because the company increased its investment in Sanas Intelligent Operations and consolidated it into its financial statements. The company remeasured its previously held equity interest at fair value as of the acquisition date, generating investment income.

Power forecasting business was affected by lower equipment revenue in the short term, while the shift toward services drove a significant gross margin recovery. In 1H26, renewable power generation forecasting products generated revenue of RMB198mn, down 3.38% YoY, with gross margin reaching 73.12%, up 11.54 pcts YoY. Of this amount, power forecasting service fee revenue was RMB119mn, up 16.48% YoY; upgrade and retrofit service revenue was RMB33mn, up 20.42% YoY; and equipment revenue was RMB46mn, down 38.70% YoY, mainly due to the high base created by the rush to install renewable energy capacity and hardware demand unleashed by the distributed generation “four capabilities” policy in the same period of 2025. As of 1H26, the number of renewable energy power plants served by the company's power forecasting business increased to 6,327, a net increase of 298 from the beginning of the year, while the user retention rate remained high. As the customer base expands and more projects enter the service period, service fee and upgrade and retrofit revenue are expected to support the steady development of the core power forecasting business. Innovative products maintained rapid growth, and power trading is expected to become the company's second growth driver. In 1H26, the company's innovative products generated revenue of RMB26mn, up 62.96% YoY, accounting for 7.49% of the company's operating revenue, up 2.45 pcts YoY. Of this amount, power trading products generated revenue of RMB7mn, up 57.27% YoY, accounting for 27.69% of innovative product revenue. As of the end of the reporting period, the company had completed the development of power trading-related products for several provincial spot markets, including Shanxi, Shandong, Gansu, Guangdong, western Inner Mongolia, and Zhejiang, and had deployed them for certain power trading customers and managed operation projects. Leveraging the data, algorithms, and customer base accumulated through power forecasting, the company has developed integrated capabilities combi ning “power trading tool support + managed operation services,” and the revenue scale and customer coverage of its innovative businesses are expected to continue expanding.

AI adoption accelerated across all businesses, with dual “forecasting + trading” models driving a new paradigm for renewable energy asset operations. In April 2026, the company officially launched the “Kuangming” AI intelligence system, introduced Meteorological Foundation Model 4.0 and Trading Foundation Model 1.0, and developed five types of AI agents covering forecasting, strategy, risk control, execution, and post-event review, spanning the entire renewable energy asset business chain from power generation forecasting and power trading to execution and post-event review. In terms of its business model, the company is expanding from traditional software licensing and annual services into subscriptions for value-added AI modules, lightweight SaaS, AI-based asset management under a model combining “basic operating service fees and a share of excess trading gains,” and turnkey contracting for integrated power generation, grid, load, and energy storage projects; it has also acquired a controlling stake in SANAS Intelligent O&M to strengthen its onsite operation and maintenance capabilities, gradually creating a closed-loop asset service system covering “power forecasting–intelligent trading–on-site operation and maintenance.” As AI adoption across its business accelerates, the company is expected to evolve from a new energy data forecasting service provider into an intelligent integrated energy asset operation service provider.

Investment recommendation: Growth in the company’s service-based power forecasting revenue is driving a recovery in gross margin, while innovative products and power trading continue to grow rapidly. AI adoption across its business is accelerating, and the dual “forecasting + tradi ng” model is expected to further expand opportunities in new energy asset operations. Revenue for 2026–2028 is expected to reach RMB911mn / RMB1,180mn / RMB1,579mn, and net profit attributable to shareholders of the parent company is expected to reach RMB181mn / RMB251mn / RMB376mn, corresponding to PE multiples of 35.65 / 25.67 / 17.15. We maintain “Buy” rating on the company.

Risks

(1) Risk from changes in industry policies : The company’s business is significantly affected by national macro policies and local power market-oriented policy regulation. If relevant policies undergo major adjustments, the company’s sustained business growth may be affected.

(2) Market competition risk : The expansion of the industry market size has attracted various participants and accelerated technological iteration. If the company fails to continuously strengthen its core advantages, it may face squeezed market share and weakened core competitiveness.

(3) Accounts receivable risk : With the expansion of business scale, the balance of accounts receivable has increased accordingly. If customer credit conditions deteriorate in the future or collection measures are not effectively implemented, bad debt risk may arise and adversely affect the company’s asset quality and business development.

(4) Technology iteration and cross-industry competition risk : The rapid development of next-generation information technology, together with the accelerated entry of cross-industry competitors such as internet giants and energy equipment manufacturers, may impact the company’s existing technology and product advantages.

(5) Risk of rising costs and expenses driven by business and technological innovation : To maintain the competitiveness of technology and products, the company needs to continuously increase R&D investment. If revenue growth from related businesses cannot cover the investment, it may adversely affect short-term profitability.