东方电子：深度报告：乘电网投资东风，发力配用电增量盘

Investment Rating - The report gives a "Recommend" rating for the company, with a target price of 11 38 RMB [1][3] Core Views - The company is a veteran in power automation with comprehensive coverage across the power grid value chain, including power generation, transmission, distribution, and consumption [1] - The company has maintained double-digit revenue growth for 16 consecutive years, with 2023 revenue reaching 6 478 billion RMB, a YoY increase of 18 64%, and net profit attributable to shareholders of 541 million RMB, up 23 46% YoY [1] - The company is expected to achieve revenue of 7 930 billion RMB in 2024, with a growth rate of 22 4%, and net profit attributable to shareholders of 692 million RMB, up 27 8% YoY [1][2] Company Overview - The company has a history dating back to the 1950s, with its predecessor established in 1987 and listed on the Shenzhen Stock Exchange in 1997 [1] - The company has a complete industrial chain layout in the power industry, covering power generation, transmission, distribution, and consumption [1] - The company's core subsidiaries include Haier Software and Weistone, which focus on digital solutions and smart grid services respectively [11] Financial Performance - The company's revenue CAGR from 2019 to 2023 was 17 33%, with 2023 revenue reaching 6 478 billion RMB, up 18 64% YoY, and net profit attributable to shareholders of 541 million RMB, up 23 46% YoY [17] - In Q1 2024, the company achieved revenue of 1 278 billion RMB, up 11 06% YoY, and net profit attributable to shareholders of 101 million RMB, up 32 04% YoY [17] - The company's contract liabilities reached 3 065 billion RMB in 2023, up 42% YoY, and 3 161 billion RMB in Q1 2024, up 27% YoY [1] Power Distribution and Consumption - The company benefits from increased investment in power grid infrastructure, particularly in power distribution and consumption [1] - The company's power distribution terminal products rank among the top in market share, with a 5 95% share in the State Grid and 32 60% in the Southern Grid in 2023 [26] - The company's subsidiary, Weistone, has seen its net profit grow from 0 01 billion RMB in 2003 to 3 09 billion RMB in 2023, ranking among the top three in the State Grid's smart meter bidding for eight consecutive years [1][33] Overseas Expansion - The company's overseas revenue CAGR from 2019 to 2023 was 15 88%, with 2023 overseas revenue reaching 374 million RMB, up 31 09% YoY [37] - The company focuses on markets in Southeast Asia, the Middle East, Central Asia, and Africa, with significant projects in Saudi Arabia, Uzbekistan, and Malaysia [40] Virtual Power Plant (VPP) - The company is a leader in the VPP sector, having implemented the largest VPP project in China for the Southern Grid and winning pilot projects in Shandong [1][60] - The company's VPP business is expected to grow, with revenue from comprehensive energy and VPP reaching 195 million RMB in 2023, up 16 31% YoY [62] Industry Trends - The power distribution network is a key focus for investment in China's power grid, with the State Grid planning to invest over 1 2 trillion RMB in distribution networks during the 14th Five-Year Plan period [20][23] - The virtual power plant market in China is expected to grow significantly, with the maximum load predicted to reach 1 63 billion kW by 2025 and 1 89 billion kW by 2030 [51][54]