Annual Revenue of 1 Billion, 63% Dividend Payout Rate, Inductor "Number One" Sunlord Electronics Distributes Cash!

Automobiles and Computing Power Hand in Hand

Author | Shell XY

Editor | Xiao Bai

I still remember a few years ago when I wrote about Sunlord Electronics (002138.SZ), the market was still discussing the difficulties of domestic substitution.

Now, looking at this company again, its 2025 revenue is 6.745 billion yuan, with a net profit of 1.021 billion yuan, both hitting record highs.

The Chinese inductor leader that once struggled to survive among Japanese manufacturers seems to have quietly transformed from a “follower” to a “leader.” Let’s take a look as the 2025 annual report is released.

From Follower to Global Top Tier

Sunlord Electronics’ story began in 2000. At that time, the domestic electronic component industry was almost monopolized by Japanese companies: Murata, TDK, Taiyo Yuden, and other giants held nearly half of the global market share. Sunlord started with small inductors and managed to carve out a niche in this crowded market.

Inductors may seem insignificant, but they are essential “gatekeepers” in electronic circuits. They filter signals, reduce noise, and stabilize current. Without them, phones can’t make calls, cars can drive, and servers can compute.

Sunlord has been deeply cultivating this field for 25 years. Today, its chip inductors are the top in domestic production and rank among the top three globally. Especially in high-end products, Sunlord has entered the global first tier.

For example, in nano-scale miniaturization and high-precision inductors like the inch-based 01005 and 008004 multilayer inductors, the company is one of the few worldwide capable of mass production. High-value products such as integrated molded inductors, ultra-thin copper-magnetic sintered power inductors, and new structural tantalum capacitors have brought the company significant premium margins.

In 2025, the company delivered another impressive performance: annual revenue of 6.745 billion yuan, up 14.39%; net profit attributable to shareholders of 1.021 billion yuan, up 22.71%.

Sunlord Electronics 2025 Annual Report

Behind this performance is steady growth in traditional markets like mobile communications and consumer electronics, as well as explosive breakthroughs in emerging strategic markets such as automotive electronics and data centers.

Dual Drive of Automobiles and Computing Power

In the past, over 80% of Sunlord’s revenue came from mobile communications. As the smartphone market peaks, many worry about the company’s growth ceiling. But Sunlord’s data tells a different story: traditional business remains stable, while emerging businesses are taking over.

The automotive electronics segment performed particularly well. In 2025, this segment generated 1.525 billion yuan, accounting for 22.6% of total revenue, with a year-over-year growth of 38.1%, making it the fastest-growing business line.

The demand for inductors in new energy vehicles is twice that of traditional cars, with per-vehicle value increasing six to nine times. Sunlord began developing automotive-grade products as early as 2009, obtained international certifications in 2017, and now has become a core partner for top suppliers like Bosch, Valeo, and CATL.

Sunlord Electronics 2025 Annual Report

Even more promising is the rise of data center business. In 2025, orders related to data centers surged, boosting power management revenue to 2.322 billion yuan, nearly 20% year-over-year growth, making it another growth engine after automotive electronics.

AI servers’ demand for power inductors and tantalum capacitors has skyrocketed. Sunlord has achieved full coverage of power supply modules for GPU, CPU, ASIC chips, and other chip-end customers. The company’s early layout of TLVR inductors, with significantly improved performance and unit prices, is now being mass-produced for leading server manufacturers.

Cash Dividend Rate Rises to 60%

Another highlight of 2025 is the significant improvement in cash flow. The company earned 1.7 billion yuan in cash from operations, up 18.71%.

As infrastructure projects in industrial parks in Dongguan, Shanghai, and other regions are completed, capital expenditure peaks have passed. The company’s free cash flow has continued to turn positive, reaching 970 million yuan in 2025, a nearly 60% increase year-over-year.

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The enhanced cash-generating ability is directly reflected in dividends. The 2025 profit distribution plan proposes a cash dividend of 8 yuan per 10 shares (tax included), with a total cash dividend of 639 million yuan, accounting for 62.6% of net profit attributable to shareholders in the same period—significantly higher than previous years.

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In fact, since free cash flow turned positive in 2023, Sunlord’s dividend payout ratio has been increasing. In 2024, the dividend rate rose by 20 percentage points to 56.9%, and in 2025, it reached a new high. For investors, this indicates the company has shifted from a period of large-scale investment to one of returns.

Disclaimer: This report (article) is based on publicly disclosed information of listed companies, including but not limited to interim and annual reports, official communication platforms, and is an independent third-party analysis. Market Value Fengyun strives for objectivity and fairness but does not guarantee accuracy, completeness, or timeliness. The information or opinions expressed do not constitute investment advice. Market Value Fengyun is not responsible for any actions taken based on this report.

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