3onedata(688618) 东兴证券·2025-03-03 08:23Investment Rating - The report gives a "Buy" rating for Sanwang Communication [9]. Core Viewpoints - Sanwang Communication has demonstrated strong capabilities in technology innovation and market expansion, establishing itself as a leading brand in the domestic industrial internet communication sector. The company has evolved through three stages: initial establishment, deepening its market presence, and leading innovation [3][12]. - The domestic industrial communication market is still in its early stages, currently accounting for only 20% of the global market share. In 2020, the domestic market size was approximately 4.21 billion yuan [4][23]. - The report highlights that investment in the power grid is entering an accelerated phase, with significant opportunities for Sanwang Communication as it actively positions itself in power communication solutions. By 2025, total investment from the State Grid and Southern Grid is expected to exceed 825 billion yuan, marking a substantial increase from 2024 [4][31][35]. Summary by Sections Company Overview - Established in 2001, Sanwang Communication specializes in industrial internet solutions and has been recognized as a national high-tech enterprise. The company has developed a range of products including industrial-grade converters and embedded industrial Ethernet modules, which are widely used in various sectors such as smart cities and transportation [3][5]. Market Analysis - The global industrial internet communication equipment industry generated revenues of 2.65 billion USD in 2018 and 3.08 billion USD in 2019, with industrial Ethernet switches being the primary market segment. The domestic market was valued at 4.21 billion yuan in 2020, indicating a growing opportunity for Sanwang Communication [4][27]. Investment Opportunities - The report emphasizes that the power grid investment is set to accelerate, with the State Grid's investment projected to reach 609.2 billion yuan in 2024 and exceed 650 billion yuan in 2025. This growth is primarily driven by the need for renewable energy integration and smart grid transformation [31][35]. - Sanwang Communication's new power system communication solutions are designed to enhance real-time monitoring and intelligent management of power equipment, which is expected to become a new revenue growth point for the company by 2025 [4][37]. Financial Forecast - The report forecasts Sanwang Communication's revenue to be 357 million yuan in 2024, 446 million yuan in 2025, and 558 million yuan in 2026, with corresponding net profits of 34 million yuan, 64 million yuan, and 97 million yuan respectively. The price-to-earnings ratios are projected to be 56X, 30X, and 19X for the same years [5][45].