HUAMING(002270) 华源证券·2024-12-31 00:08Investment Rating - The report assigns a "Buy" rating to the company, indicating a strong potential for growth and profitability in the context of the new power system construction [64][67][84]. Core Insights - The company has a solid position in the transformer tap switch market, holding over 80% of the domestic market share and ranking as the second-largest manufacturer globally [64][67]. - The demand for tap switches is expected to increase significantly due to the acceleration of new power system construction and the need for high-voltage transformers [84]. - The company has demonstrated strong financial performance, with a projected net profit growth of 17% to 21% from 2024 to 2026 [67][86]. Summary by Sections Company Overview - The company has been deeply involved in the tap switch sector for over 30 years, establishing a robust industry position [1]. - Its main business includes the research, production, sales, and lifecycle maintenance of transformer tap switches, as well as contracting and operation of renewable energy power stations [2][3]. Market Position - The company has a comprehensive product matrix for tap switches, covering voltage levels up to 1000kV, and has a significant number of patents, enhancing its competitive edge [11][20]. - The domestic market for tap switches is concentrated, with the company, MR, and ABB holding over 90% of the market share for 110kV and above [13]. Demand Drivers - The construction of new power systems is expected to sustain long-term demand for tap switches, particularly as the country aims to increase renewable energy capacity [14][17]. - The company has successfully broken the foreign monopoly in the high-voltage tap switch market, particularly for products rated at 500kV and above [19]. Financial Performance - The company’s revenue from its core power equipment business reached 16.25 billion yuan in 2023, accounting for 82.9% of total revenue, with a year-on-year growth of 14.55% [64][97]. - The projected revenue growth for the power equipment segment is estimated at 16% to 14.6% from 2024 to 2026, with a maintained gross margin of 59% [67][86]. International Expansion - The company has made significant strides in international markets, with overseas revenue reaching 274 million yuan in 2023, a year-on-year increase of nearly 80% [25][65]. - The focus on localizing operations in key markets such as Turkey, Russia, and Brazil is expected to enhance responsiveness and market share [27]. Profitability Forecast - The company’s net profit is projected to be 634 million yuan in 2024, with a growth rate of 16.93%, and is expected to reach 881 million yuan by 2026 [67][86].