NEW YORK, Nov. 20, 2023 (GLOBE NEWSWIRE) -- Diamond Equity Research, a leading equity research firm with a focus on small capitalization public companies has initiated coverage of Erayak Power Solution Group Inc. (NASDAQ: RAYA). The in-depth 20-page initiation report includes detailed information on the Erayak Power Solution Group’s business model, services, industry, valuation, management, and risks.
The full research report is available here. Highlights from the report include:
- Diversified Product Portfolio Supported by Strong R&D Capabilities - Erayak’s growth revolves around its ability to advance with continuous innovation and evolving market needs. So far, the company has successfully managed to adapt to changing consumer demands and technological trends, creating a diversified portfolio of inverters, generators, and chargers. Leveraging its strong research and development capabilities, Erayak has been upgrading its product technology and designs across multiple product segments, thus providing its customers with state-of-the-art energy-efficient solutions that meet or exceed industry standards. The company’s R&D efforts and capabilities have even been recognized by the Zhejiang provincial government, allowing its entry into China’s National High-Tech Enterprise Program. The company’s pure and modified sine wave inverter series and portable generator series find their application across various residential and commercial avenues, including the automotive market, agriculture, electrical appliances, outdoor and power tools, and renewable energy. The numerous applications of its diversified portfolio are further bolstered by its global reach and wide online presence.
- Multiple Growth Catalysts - Erayak has managed to report robust growth numbers in the past two years, with revenue growing at a CAGR of 38.05%. This has been made possible by management’s ability to capitalize on multiple demand drivers, new product launches, and its widening and deepening presence across various geographies. These factors have historically driven the company’s growth and have allowed expansion of the business. The company’s ongoing commitment to R&D enables it to continuously launch cutting-edge products, solidifying its market position and meeting diverse power needs. The forthcoming launch of the power station series is a testament to this dedication, further expanding their product range while driving growth. Simultaneously their international presence, accentuated by strategic e-commerce partnerships like the Amazon Accelerator initiative, allows them to tap into multiple markets and build strong brand recognition. Lastly, their agility in capitalizing on short-term demand spikes - evident from the surge in generator sales during the global energy crisis - coupled with a strategic focus on long-term trends like China’s impending heavy truck replacement cycle, and mobile and outdoor lifestyle collectively offers a strong, multi-faceted growth strategy for Erayak.
- Valuation – We have valued the company using discounted cash flow (DCF) as our primary valuation approach. Using a discount rate of 9.4% and a long-term growth rate of 1.5%, our valuation model yielded an intrinsic value of $4.67 per share contingent on successful execution by the company.
About Erayak Power Solution Group Inc.
Erayak Power Solution Group Inc. specializes in the R&D, manufacturing, and distribution of power solution products, including inverters, generators, and battery chargers. Established in 2019 and based on Wenzhou, China the company serves multiple markets, including agricultural, industrial, and recreational sectors.
About Diamond Equity Research
Diamond Equity Research is a leading equity research and corporate access firm focused on small capitalization companies. Diamond Equity Research is an approved sell-side provider on major institutional investor platforms.
For more information, visit https://www.diamondequityresearch.com.
Disclosures:
Diamond Equity Research LLC is being compensated by Erayak Power Solution Group Inc. (NASDAQ: RAYA) for producing research materials regarding Erayak Power Solution Group Inc. and its securities, which is meant to subsidize the high cost of creating the report and monitoring the security, however, the views in the report reflect that of Diamond Equity Research. All payments are received upfront and are billed for an annual or semi-annual research engagement. As of 11/20/23, the issuer had paid us $34,946.44 for our research services ($35,000 contract, fee reflects wire charge), which commenced 08/03/23 and is billed annually. Diamond Equity Research LLC may be compensated for non-research related services, including presenting at Diamond Equity Research investment conferences, press releases and other additional services. The non-research related service cost is dependent on the company, but usually do not exceed $5,000. The issuer has not paid us for non-research related services as of 11/20/2023. Issuers are not required to engage us for these additional services. Additional fees may have accrued since then. Although Diamond Equity Research company sponsored reports are based on publicly available information and although no investment recommendations are made within our company sponsored research reports, given the small capitalization nature of the companies we cover we have adopted an internal trading procedure around the public companies by whom we are engaged, with investors able to find such policy on our website public disclosures page. This report and press release do not consider individual circumstances and does not take into consideration individual investor preferences. Statements within this report may constitute forward-looking statements, these statements involve many risk factors and general uncertainties around the business, industry, and macroeconomic environment. Investors need to be aware of the high degree of risk in small capitalization equities including the complete loss of their investment. Investors can find various risk factors in the initiation report and in the respective financial filings for Erayak Power Solution Group Inc. and investors should read full disclosures found in the research report.
Contact:
Diamond Equity Research
research@diamondequityresearch.com
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