Investment Rating - The report initiates coverage with a "Buy" rating for the company [2][10]. Core Views - The company is a leading manufacturer of fuses in China, expected to benefit from the high demand in the new energy vehicle and wind-solar storage sectors, leading to rapid growth in performance [2][10]. - The projected net profits for the company from 2024 to 2026 are estimated to be 201 million, 313 million, and 490 million yuan respectively, with corresponding EPS of 3.03, 4.73, and 7.39 yuan [2][10]. - The target price for 2024 is set at 90.11 yuan, based on PE and PB valuation methods [2][10]. Financial Summary - The company's revenue is expected to grow from 1.06 billion yuan in 2023 to 2.93 billion yuan in 2026, with year-on-year growth rates of 40.4%, 42.0%, 42.8%, and 36.3% respectively [3][12]. - The net profit attributable to the parent company is projected to increase from 117 million yuan in 2023 to 490 million yuan in 2026, with growth rates of -23.9%, 71.6%, 56.2%, and 56.3% [3][12]. - The company's gross margin is expected to remain high, with a forecast of 41.53% in 2024, declining slightly to 39.22% by 2026 [12]. Business Overview - The company has established a comprehensive product matrix, including power fuses, electronic fuses, incentive fuses, and smart fuses, with over 120 product series and more than 9,000 specifications [17][18]. - The company has a strong customer base, including major domestic brands and international companies such as Tesla, Daimler, and Volvo [2][10]. - The penetration rate of 800V high-voltage platforms in new energy vehicles is expected to drive explosive growth in the sales of incentive fuses, with projected revenue from these products reaching 1.04 billion yuan in 2024, a year-on-year increase of 173.32% [2][10]. Market Expansion - The company has expanded its overseas operations by establishing wholly-owned subsidiaries in Japan and Singapore, and joint ventures in Thailand and the United States [2][10]. - A significant order worth 900 million to 1.2 billion yuan from a leading German automotive company is expected to start production in 2025, indicating strong growth potential in international markets [2][10]. Valuation - The report utilizes both PE and PB valuation methods, with a target price derived from an average of both methods, resulting in a target price of 90.11 yuan [14][15]. - The company is expected to maintain a higher valuation premium due to its leading position in the fuse industry and growth potential in new energy sectors [14][15].
中熔电气首次覆盖报告：深耕熔断器行业，充分受益800V及出海