Investment Rating - The report initiates coverage with a "Buy" rating for the company [4][12]. Core Views - The company is a leading player in the power cable assembly industry, benefiting from the high demand in the downstream new energy vehicle sector and the recovery in home appliances and personal computers, which is expected to drive rapid growth in performance [3][4]. - The projected net profits for 2024-2026 are estimated at 218 million, 255 million, and 297 million yuan, representing year-on-year growth of 1.96%, 17%, and 16.26% respectively, with corresponding EPS of 0.56, 0.66, and 0.76 yuan [4][12]. - The target price for 2025 is set at 17.94 yuan based on PE and PB valuation methods [4][12]. Summary by Sections 1. Profit Forecast and Investment Recommendations - The company is expected to achieve revenues of 30.79 billion, 37.56 billion, and 42.84 billion yuan for 2024-2026, with year-on-year growth rates of 24.19%, 21.98%, and 14.06% respectively [12][15]. - The power cable assembly business is projected to generate revenues of 18.70 billion, 21.85 billion, and 24.15 billion yuan for 2024-2026, with growth rates of 11.91%, 16.84%, and 10.53% [13][15]. - The special cable business, particularly in new energy vehicle charging products, is expected to see significant growth, with revenues projected at 12.00 billion, 15.55 billion, and 18.45 billion yuan for 2024-2026, reflecting growth rates of 49.30%, 29.58%, and 18.65% [13][15]. 2. Deepening in Power Cable Assembly Industry - The company has over 20 years of experience in the power cable assembly sector, establishing itself as a well-known brand and a qualified supplier for major clients like LG and Samsung [19][20]. - The product structure is diverse, including power cable assemblies for computers and home appliances, as well as special cables for various applications, including new energy vehicles [20][21]. 3. Market Growth and Application Prospects - The power cable assembly market is expanding, driven by increasing demand in various sectors, including home appliances and personal computing [19][20]. - The special cable segment, particularly for new energy vehicles, is expected to grow rapidly, supported by partnerships with leading automotive manufacturers [12][13]. 4. Technical Advantages and Client Relationships - The company has established strong technical capabilities and deep relationships with key clients, enhancing its competitive position in the market [19][20]. - The establishment of a production base in Thailand has facilitated international business expansion and reduced trade friction risks [4][12]. 5. Financial Performance and Stability - The company has shown stable revenue growth, with 2023 revenues reaching 24.79 billion yuan, a year-on-year increase of 8.31% [27][29]. - The net profit for 2023 was 214 million yuan, reflecting a growth of 19.34% compared to the previous year [27][29].
泓淋电力首次覆盖报告：电源线组件龙头，新能源业务快速发展