TJSMW(SH:600577) Tianfeng Securities·2025-07-07 01:42Investment Rating - The report maintains a "Buy" rating for the company with a target price of 10.02 CNY, based on a PE ratio of 30 times for the year 2025 [5]. Core Insights - The company has been deeply engaged in the electromagnetic wire sector for over 30 years, focusing on copper and aluminum-based electromagnetic wires and special conductors, with a dual-driven strategy to explore new fields [1][13]. - The traditional business of enameled wire is steadily growing, with a strong market position and stable revenue from automotive and electronic wires, while special conductors are expected to create a new growth curve for the company [1][2]. - The demand for AI servers is driving the growth of the silver-plated copper market, with the company positioned as a leader in this segment through its subsidiary, Hengfeng Special Conductors [2][3]. Summary by Sections Traditional Business: Enameled Wire and Automotive, Electronic Wires - The enameled wire market is a blue ocean, with the company holding a leading position in production and sales, capturing a market share of 12.09% in 2022 [31][33]. - The automotive wire harness industry is expanding, driven by increasing vehicle production and the rise of electric vehicles, with the market expected to exceed 120 billion CNY by 2025 [41][44]. - The company has established strategic partnerships with well-known clients in the home appliance and industrial motor sectors, ensuring stable cash flow [48]. Special Conductors: Growth Driven by AI Servers - The global AI server market is projected to grow from 19.5 billion USD in 2022 to 34.7 billion USD in 2026, with a compound annual growth rate (CAGR) of 17.3% [2][49]. - Hengfeng Special Conductors, a wholly-owned subsidiary, is a leading player in the domestic silver-plated copper market, benefiting from high technical barriers and competitive advantages [2][3]. - The company is also involved in high-temperature superconductors, with its stake in Shanghai Superconductor expected to benefit from the commercialization wave in this field [3]. Financial Forecast and Valuation - The company is expected to achieve total revenues of 246.7 billion CNY, 273.4 billion CNY, and 308.7 billion CNY for the years 2025, 2026, and 2027, respectively, with year-on-year growth rates of 10.5%, 10.8%, and 12.9% [4]. - The net profit attributable to the parent company is projected to be 7.18 billion CNY, 8.51 billion CNY, and 10.09 billion CNY for the same years, reflecting growth rates of 27.8%, 18.5%, and 18.6% [4].