EAGLERISE(CHINA)(SZ:002922) Yong Xing Zheng Quan·2024-10-14 09:41Investment Rating - The report initiates coverage with a "Buy" rating for the company [4]. Core Views - The company follows a "2+X" strategic layout, focusing on energy products, lighting products, and incubation products, leading to significant revenue growth. In 2023, the company's revenue reached 3.63 billion yuan, a year-on-year increase of 29% [3][35]. - The global transformer market is expected to reach $28.27 billion by 2024, with a compound annual growth rate (CAGR) of 9.7% from 2024 to 2029, driven by steady demand in China and significant infrastructure investments in India [3][43]. - The company is actively pursuing a major customer strategy, with its top five customers accounting for 56% of sales in 2023, and is expanding its overseas presence with production bases planned in Mexico and the U.S. [3][4]. Summary by Sections Company Overview - The company has established a "2+X" strategic layout, with products including energy transformers, industrial control transformers, lighting power supplies, and various incubation products. Revenue has shown a consistent upward trend, with a notable increase in 2023 [3][27][35]. Industry Introduction - The transformer and lighting markets are projected to maintain growth, with the global transformer market expected to reach $28.27 billion by 2024 and the lighting market projected to grow to $111.57 billion by 2024, with a CAGR of 11.35% [3][43][54]. Key Highlights - The company is implementing a major customer strategy, with significant sales to key clients. The establishment of overseas production bases in Malaysia, Mexico, and the U.S. is part of its growth strategy [3][4][18]. Profit Forecast and Valuation - Revenue forecasts for 2024-2026 are 4.45 billion, 5.53 billion, and 6.90 billion yuan, respectively, with expected growth rates of 23%, 24%, and 25%. Net profit forecasts for the same period are 344 million, 459 million, and 564 million yuan, with growth rates of 65%, 33%, and 23% [4][6].