ROSHOW(SZ:002617) Minsheng Securities·2025-03-12 11:11Investment Rating - The report initiates coverage with a "Buy" rating for the company [6]. Core Views - The company is strategically expanding into high-growth sectors such as copper connections and AI, while maintaining steady growth in its traditional businesses [4][3]. - The demand for AI is driving significant capital expenditures (CAPEX) from major players, which is expected to boost the market for active electrical cables (AEC) significantly [2][24]. - The company has made a strategic investment in Wande Technology, enhancing its position in the copper connection market, which is poised for rapid growth due to AI developments [3][40]. Summary by Sections 1. Traditional Focus and Business Expansion - The company, founded in 1989, has a strong foundation in the enameled wire business and has actively pursued mergers and acquisitions to expand into high-growth areas such as new energy vehicle components, photovoltaic power, and silicon carbide substrates [1][11]. - The company has diversified its operations into four main areas: enameled wire, photovoltaic power, silicon carbide, and aerial work platforms [14][15]. 2. Investment in Wande Technology - The company invested 60 million yuan in Wande Technology, acquiring a 16.67% stake, which positions it well in the innovative copper connection sector [3][40]. - Wande Technology is recognized for its advanced technology in high-speed copper cables and is expected to benefit from the growing demand for AEC products [41][42]. 3. Financial Forecast and Investment Recommendations - The company is projected to achieve revenues of 3.685 billion yuan in 2024, 4.850 billion yuan in 2025, and 5.628 billion yuan in 2026, with corresponding net profits of 335 million yuan, 516 million yuan, and 586 million yuan [4][49]. - The report anticipates a compound annual growth rate (CAGR) of 32.9% for 2024 and 31.6% for 2025, driven by growth in both traditional and new business segments [4][49].