山西证券：研究早观点-20241206

Company Analysis: Wolong Electric (002130 SZ) - Wolong Electric is a leading domestic manufacturer of heat-shrinkable materials, specializing in high-molecular radiation-modified new materials and electronic, power, and wire products [4] - The company's revenue and net profit have grown at a compound annual growth rate (CAGR) of 20 4% and 18 1% respectively since its IPO [4] - Wolong Electric's high-speed communication cable products are benefiting from the explosive demand in the downstream high-speed copper interconnection industry, positioning the company as a core supplier of 224G high-speed communication cables [4] - The high-speed copper cable interconnection market is expected to reach $600 million for GB200 copper connection components and $90 million for tier2 cables by 2025 [5] - Wolong Electric's subsidiary, Letian Zhilian, is responsible for producing high-speed communication cables, with a product portfolio covering SAS, PCIe, QSFP, and other high-speed communication standards [6] - The company's traditional businesses, including electronic, power, and wire sectors, are expected to maintain steady growth, with opportunities in emerging markets, grid investments, and industrial robotics [7] - Wolong Electric is forecasted to achieve revenues of 6 98 billion, 9 10 billion, and 10 57 billion yuan in 2024-2026, with net profits of 1 00 billion, 1 44 billion, and 1 70 billion yuan respectively [10] Industry Analysis: China's BD Market - China's BD market has seen rapid growth in 2024, with total BD amount reaching $66 57 billion (+85 7%) and 190 projects (+36 7%) from January to November [10] - License out transactions have surged, with $60 9 billion (+117 7%) in deal value and 93 projects (+45 3%) in the first 11 months of 2024 [11] - November 2024 witnessed 35 BD and M&A transactions, including 16 cross-border outbound deals and 16 domestic transactions [10] - Significant BD transactions in November 2024 included two major deals in the PD-1/VEGF bispecific antibody space, with Pumi Biotechnology being acquired by BioNTech for $800 million and Lixin Pharmaceutical licensing its PD-1/VEGF bispecific antibody to Merck for $3 29 billion [12] - The ADC and GLP-1 fields have generated substantial BD transactions in the past two years, with notable deals including Baili Heng's $8 4 billion EGFR*HER3 bispecific antibody ADC license to BMS and Hengrui's $6 billion GLP-1 combination license to Hercules [12]