Investment Rating - The report initiates coverage with a rating of "Buy" for the company [2][3]. Core Views - The company is a leading player in the transformer industry, benefiting from the expansion of renewable energy generation and accelerated global investment in power grids [3][11]. - Revenue projections for 2024-2026 are estimated at 65.12 billion, 79.33 billion, and 93.77 billion yuan, with growth rates of 31.6%, 21.8%, and 18.2% respectively [3][7]. - Net profit attributable to the parent company is expected to reach 6.53 billion, 7.92 billion, and 9.53 billion yuan for the same period, with growth rates of 31.3%, 21.2%, and 20.4% respectively [3][7]. - The target price for 2025 is set at 42.21 yuan, corresponding to a valuation of approximately 16.64x PE [3][9]. Summary by Sections 1. Profit Forecast and Investment Advice - The company is projected to achieve total revenue of 65.12 billion yuan in 2024, with a year-on-year growth of 31.61% [8]. - The gross profit margin is expected to be around 21.33% in 2024 [8]. - The box-type substation business is anticipated to grow significantly, with revenues of 47.18 billion yuan in 2024, reflecting a growth rate of 36.43% [8][19]. 2. Leading Transformer Enterprise with Years of Industry Experience - The company focuses on three main product segments, supporting the renewable energy and new infrastructure sectors [11]. - It has established itself as a key player in the research and manufacturing of power distribution and control equipment [11][14]. - The company has a strong historical background, being a subsidiary of the Mingyang Group, which has been in the industry since 1993 [14][16]. 3. High Industry Prosperity and Accelerated Transformer Demand - The demand for transformers is expected to accelerate due to the growth of renewable energy installations and upgrades in power grids [3][11]. - The company is well-positioned to benefit from the increasing demand for transformers in various applications, including wind and solar energy [3][11]. 4. Clear Company Advantages with Dual Growth Drivers - The company has established long-term partnerships with major power generation groups, providing a solid foundation for its renewable energy business [3][11]. - It is actively expanding its international market presence while leveraging its domestic advantages [3][11].
明阳电气首次覆盖报告：深耕新能源变电，海内外需求共振