中国西电：深度报告：一次设备巨头，电网基建周期再迎腾飞机遇

Investment Rating - The report initiates coverage with a "Buy" rating for the company [2][3]. Core Views - The company is a leading enterprise in the power transmission and distribution equipment sector, benefiting from the ongoing infrastructure cycle in the power grid [2]. - The company has shown significant improvement in profitability, with gross margin rising to 19.83% and net margin to 5.59% in Q2 2024 [2][19]. - The company is well-positioned to capitalize on the growth in both domestic and international markets, particularly in the context of increasing clean energy investments and the global push for energy transition [2][32]. Summary by Sections 1. Company Overview - The company has a long-standing presence in the power transmission and distribution equipment industry, focusing on high-voltage switches, transformers, and DC transmission converters [2][8]. - It has established a strong market position in the ultra-high voltage sector and is expanding its international footprint through projects in countries like Turkey, Italy, and Sweden [2][10]. 2. Financial Performance - The company has experienced steady revenue growth, with total revenue increasing from 13.91 billion yuan in 2018 to 21.05 billion yuan in 2023, representing a CAGR of 8.6% [16]. - The forecast for revenue from 2024 to 2026 is 24.896 billion yuan, 29.038 billion yuan, and 33.562 billion yuan, with growth rates of 18.3%, 16.6%, and 15.6% respectively [3][19]. 3. Market Dynamics - The domestic market is witnessing a surge in ultra-high voltage construction, with the company securing significant contracts from the State Grid [30]. - Internationally, the company has seen a doubling of new contracts for equipment exports in 2023, indicating robust demand for its products [2][32]. 4. Investment Recommendations - The report suggests that the company will continue to lead in the transmission and distribution equipment sector, with a focus on smart grids and renewable energy [2][19]. - The projected earnings per share for 2024, 2025, and 2026 are 0.25 yuan, 0.39 yuan, and 0.46 yuan, respectively, with corresponding PE ratios of 32X, 21X, and 17X [3][19].