Highlander(300065) 东吴证券·2024-07-15 08:30Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 6.28 RMB per share [118][123] Core Views - The company is a leading high-tech enterprise in marine electronics and intelligent navigation, with a strong focus on smart shipping and marine information systems [114][123] - The company has successfully recovered from the impact of being added to the US Entity List in 2022, with its core businesses returning to growth [95][114] - The company is well-positioned to benefit from the global shipbuilding boom and the increasing demand for intelligent marine equipment [10][123] - The company's underwater data center business is expected to become a third growth driver, leveraging the rising demand for computing power and energy-efficient data solutions [47][124] Industry Overview Marine Electronics Industry - The global marine electronics industry is dominated by traditional maritime powers such as the US, Germany, Japan, and the UK, which hold a monopoly in high-end marine electronics [113] - Domestic companies are rapidly catching up in technology, with the localization of marine electronics accelerating due to national security concerns and technological advancements [2] - The demand for high-end marine electronics is increasing, driven by applications in deep-sea and offshore environments [2] Shipbuilding Industry - The global shipbuilding industry is experiencing a boom, with new orders reaching 106.91 million deadweight tons in 2023, a 27.9% year-on-year increase [10] - China's shipbuilding industry is leading globally, accounting for 50.2% of global shipbuilding output, 66.6% of new orders, and 55.0% of order backlogs in 2023 [10] - The trend towards larger and more intelligent ships is driving demand for high-end marine electronics, with the value of electronic equipment accounting for two-thirds of the total ship value [13] Company Business Analysis Intelligent Navigation and Marine Observation - The company's intelligent navigation systems and marine observation equipment are core businesses, with the former accounting for around 50% of total revenue [95][114] - The company has developed a comprehensive product portfolio, including intelligent navigation systems, cabin automation systems, and ship-shore integrated communication systems [20][23] - The company's products have been applied to various military and civilian vessels, including China's first aircraft carrier, the Liaoning [20][21] Underwater Data Center Business - The company's underwater data center business is a key growth area, leveraging the natural cooling properties of seawater to reduce energy consumption and operational costs [47][54] - The company's Hainan Lingshui underwater data center project, the world's first commercial underwater data center, has completed its first phase and is expected to expand further [80][124] - The company plans to expand its underwater data center business to Guangdong and Shanghai, with potential for significant growth in the coming years [81] Financial Projections - The company's revenue is expected to grow at a CAGR of 23.73% from 2024 to 2026, driven by strong demand in intelligent navigation and marine observation equipment [83] - The underwater data center business is projected to grow at a CAGR of 50% from 2024 to 2026, with revenue reaching 654.3 million RMB by 2026 [83] - The company's net profit is expected to rebound significantly, with a projected net profit of 76.14 million RMB in 2024, 106.88 million RMB in 2025, and 145.28 million RMB in 2026 [83][85] Valuation - The company's valuation is based on a relative valuation method, with a target PE ratio of 61x for 2024, 43x for 2025, and 32x for 2026 [85] - The company's valuation is supported by its strong position in the marine electronics industry, its recovery from US sanctions, and the growth potential of its underwater data center business [85][123]