QRUNNINGCABLE(BJ:834682) Soochow Securities·2025-02-21 12:23Investment Rating - The report assigns an "Accumulate" rating for the company, marking its first coverage [8]. Core Views - The company, QiuGuan Cable, is a regional leader in the power cable market, focusing on the research, production, and sales of high and low voltage power cables and special cables. It has shown steady revenue growth and profitability [8][11]. - The demand for ultra-high voltage and special cables is increasing, supported by national policies and market expansion. The domestic cable market is expected to grow significantly, with projections indicating a market size of 1.6 trillion yuan by 2027 [8][34]. - The company emphasizes R&D investment, which has led to technological advancements and a strong customer base, including major state-owned enterprises [8][19]. Summary by Sections 1. Company Overview - QiuGuan Cable was established in 2006 and is recognized as a high-tech enterprise in China, focusing on power and special cables. The company has a stable shareholding structure and has been listed on the Beijing Stock Exchange since 2021 [11][12]. - The company has received multiple certifications and has established long-term partnerships with international clients, enhancing its market reputation [11]. 2. Market Growth - The cable market is foundational to the national economy, with a wide range of applications across various sectors. The market is rapidly expanding, driven by infrastructure investments and the transition to renewable energy [30][34]. - The domestic cable market's sales revenue reached 1.2 trillion yuan in 2023, with a projected growth rate of 2.56%. The power cable segment holds the largest market share [30][34]. 3. R&D and Innovation - The company has significantly increased its R&D investment, with expenses rising from 61.35 million yuan in 2018 to 82.93 million yuan in 2023, reflecting a compound annual growth rate (CAGR) of 9.96% [8][19]. - QiuGuan Cable has obtained 58 patents, including 14 invention patents, which support its competitive edge in high-performance cable products [11][19]. 4. Financial Performance - The company reported a revenue of 2.983 billion yuan in 2023, a year-on-year increase of 12.28%. The net profit attributable to shareholders was 122.58 million yuan, up 13.39% from the previous year [8][19]. - The forecast for net profit from 2024 to 2026 is 1.28 billion yuan, 1.48 billion yuan, and 1.70 billion yuan, respectively, indicating a steady growth trajectory [8][19]. 5. Competitive Landscape - The domestic cable market is characterized by low concentration and intense competition, with over 10,000 manufacturers. QiuGuan Cable is positioned in the second tier of the industry, focusing on mid to high voltage cables [42][44]. - The overall market gross margin is high, but competition in the low-end product segment is fierce, leading to a challenging environment for smaller players [44].