Investment Rating - The report initiates coverage on Mingyang Electric (301291 SZ) with a "Buy" rating [3] Core Views - Mingyang Electric is a leading player in the new energy and new infrastructure power transformation sector, with a three-step growth strategy: stabilizing and expanding its market share in new energy power generation, increasing high-margin revenue from offshore wind projects, and expanding into overseas markets and domestic grid channels [1][2] - The company has a strong market position in the wind and solar sectors, with a 27 25% market share in wind power and 15 20% in solar power in 2022 [2] - Offshore wind is a key growth driver, with the company breaking the monopoly of foreign brands in offshore wind transformers and securing bulk orders [2] - The company is strategically expanding into overseas markets and domestic grid channels, which are expected to be the next growth drivers [3] Financial Performance - Revenue is expected to grow from 6 334 billion yuan in 2024 to 10 102 billion yuan in 2026, with a CAGR of 28% from 2024 to 2026 [3] - Net profit attributable to shareholders is projected to increase from 648 million yuan in 2024 to 1 067 billion yuan in 2026, with a CAGR of 30% [3] - The company's PE ratio is expected to decline from 18 6x in 2024 to 11 3x in 2026, indicating improving valuation metrics [3] Market Position and Competitive Advantages - Mingyang Electric has a strong foothold in the new energy sector, with its products widely used in wind, solar, and energy storage projects [1][2] - The company has a high customer concentration, with the top five customers accounting for 53% of sales in the new energy sector in 2022 [2] - In offshore wind, the company has achieved technological breakthroughs, with its offshore wind transformers and switchgear reaching international advanced levels [2] - The company is well-positioned to benefit from the global trend of increasing grid investments, particularly in North America and Europe [3] Growth Drivers - Offshore wind is expected to be a major growth driver, with the company's offshore wind products gradually replacing imports [2][47] - The company is expanding into overseas markets, particularly in regions with high demand for power equipment, such as North America and Europe [3][61] - Domestic grid upgrades and new energy construction are expected to drive demand for the company's high-voltage products [3][68] Industry Trends - The global transformer market is expected to grow at a CAGR of 4 8% from 2023 to 2028, driven by new energy construction, electric vehicle adoption, and grid upgrades [61] - Offshore wind is expected to grow at a CAGR of 28% from 2024 to 2028, with Mingyang Electric well-positioned to capture this growth [38][47] - Domestic grid investment is accelerating, with a 23% year-on-year increase in the first eight months of 2024, providing a strong tailwind for the company's grid-related products [66][68]
明阳电气：深耕新能源变电，海风起量，并牟定出海及电网