Investment Rating - The report maintains a "Buy" rating for the company [8] Core Views - The company specializes in transformers and other power transmission and distribution equipment, leading in market share in domestic renewable energy box transformers. It leverages strong channel advantages from the Mingyang Group to deeply engage in high-value scenarios such as offshore wind and solar power, possessing technological and project performance advantages. The ongoing shortage of transformers overseas presents growth opportunities as the company binds with top clients for indirect overseas expansion and actively develops direct sales channels abroad, benefiting from global renewable energy installation growth and transformer shortages [3][12][16] Summary by Sections Company Fundamentals - The company is a subsidiary of Mingyang Group, focusing on power transmission and control equipment. It is a leading supplier in the domestic market for renewable energy box transformers and has developed photovoltaic integrated products used in over 40 countries, including Southeast Asia, Europe, the Middle East, and North America [29] - The company’s main products include box-type substations, complete switchgear, and transformers, with a focus on renewable energy and new infrastructure applications. The product range is comprehensive, covering dry and oil-immersed transformers, medium and low-voltage switchgear, and various types of box-type substations [36][40] Industry Analysis - The demand for renewable energy transformers is expected to continue improving. In the first seven months of 2024, domestic land wind turbine bidding reached 68.7 GW, a year-on-year increase of 126%, while offshore wind and EPC bidding grew by 25% [62] - The photovoltaic sector is experiencing a resurgence, with domestic installations in the first nine months of 2024 reaching 160.88 GW, a 24.8% year-on-year increase. The long-term growth outlook remains positive due to declining costs and supportive policies [62][66] - The global demand for large-scale energy storage is anticipated to flourish, driven by the increasing share of variable renewable energy sources like wind and solar [68] Company Advantages - The company has a clear advantage in offshore scenarios, where transformer value is higher and technical barriers are greater. Its products meet international advanced standards in key performance indicators and have achieved domestic substitution. The company is rapidly expanding its overseas market presence, securing new orders and breakthroughs in international markets [12][19] - The company’s revenue and profit have been growing rapidly, with a CAGR of 43.8% for revenue and 40.9% for net profit from 2020 to 2023. In the first three quarters of 2024, it achieved revenue of 4.09 billion yuan, a year-on-year increase of 23.52%, and a net profit of 436 million yuan, up 37.56% [49][50] Profit Forecast, Valuation, and Investment Advice - The company is expected to generate revenues of 6.238 billion yuan, 7.923 billion yuan, and 9.125 billion yuan for 2024, 2025, and 2026, respectively, with year-on-year growth rates of 26.06%, 27.02%, and 15.17%. The net profit attributable to shareholders is projected to be 646 million yuan, 868 million yuan, and 1.034 billion yuan for the same years, with growth rates of 29.77%, 34.43%, and 19.07% [18][19]
明阳电气：海上场景优势明显，海外拓展助推新增长