JZNEE(SH:603507) Guotou Securities·2024-09-27 00:23Investment Rating - The report assigns a "Buy-A" investment rating to the company with a 6-month target price of 25.67 CNY, based on a PE ratio of 17 times for 2024 [2][4]. Core Insights - The company, Zhenjiang New Energy Equipment Co., Ltd., specializes in the supply of steel structures for renewable energy, focusing on wind and solar energy components. It has established a strong presence in overseas markets, with revenue from international markets consistently exceeding domestic revenue [1][3]. - The wind power sector is expected to benefit from the growth of offshore installations, while the solar business is actively expanding its overseas production capacity to capture market opportunities [2][3]. - Revenue projections for the company are 47.64 billion CNY in 2024, 62.36 billion CNY in 2025, and 79.72 billion CNY in 2026, with net profits expected to reach 2.79 billion CNY, 3.74 billion CNY, and 5.32 billion CNY respectively during the same period [2][3]. Company Overview - Zhenjiang New Energy Equipment Co., Ltd. was established in March 2004 and went public in 2017. Its main business includes components for wind and solar energy equipment, as well as fasteners and offshore wind installation services [11][12]. - The company has a concentrated ownership structure, with the actual controllers holding a significant portion of shares [16][17]. Wind Power Sector - The global wind power installation capacity continues to grow, particularly in the offshore segment, which is expected to see significant expansion due to favorable wind conditions and technological advancements [25][28]. - The company has established itself as a qualified supplier of wind power components for major global players such as Siemens and General Electric, and it has invested in offshore wind installation vessels to enhance its service offerings [3][31]. Solar Power Sector - The solar power market is experiencing robust growth, especially in emerging markets, with an increasing share of tracking mounts in installations. The company is expanding its production capabilities in the U.S. and Saudi Arabia to capitalize on this growth [3][28]. - The company’s solar business has shown rapid growth, with a year-on-year revenue increase of 113.28% in 2023 [19][21]. Financial Performance - The company reported a revenue of 38.42 billion CNY in 2023, reflecting a year-on-year growth of 32.28%. The revenue composition shows that wind power products accounted for 59.56% and solar products for 25.12% of total revenue [19][21]. - The company’s profitability has experienced fluctuations, influenced by raw material costs and exchange rate variations, but has shown signs of recovery since 2020 due to improved operational efficiency and product mix [23][24].