HANGZHOU ZHONGHENG(SZ:002364) Shanxi Securities·2025-07-14 00:44Group 1 - The report highlights that Zhongheng Electric (002364.SZ) is a leader in HVDC solutions and is poised to benefit from the AI wave, with a focus on the digital energy industry chain, including data centers, digital grids, and electric vehicle charging [4][6] - The company was founded in 1996 and went public in 2010, with a stable shareholding structure and experienced management. It is projected to achieve significant profit growth in 2024 and 2025, with expected revenues of 1.96 billion yuan in 2024, a year-on-year increase of 26.1%, and a net profit of 110 million yuan, a year-on-year increase of 178.5% [6] - The hardware business is stable, with HVDC solutions expected to see increased market penetration due to their advantages in long-distance transmission, low loss, stability, and efficiency. The company is a pioneer in HVDC solutions and has established national standards for direct current power supply systems [6][7] Group 2 - The report notes that the Panama solution, developed in collaboration with Alibaba, is expected to significantly contribute to the company's performance, with Alibaba's infrastructure investment projected to exceed the total of the past decade over the next three years [6] - The communication power segment remains stable, with revenue expected to be 306 million yuan in 2024, a year-on-year decrease of 4.5%. The electric power segment is projected to grow by 20.5% year-on-year, reaching 479 million yuan in 2024 [6] - The software business focuses on digital grid development and new comprehensive energy services, with the company leveraging its subsidiary Zhongheng Borui's 20 years of experience in power digitalization [6] Group 3 - The revenue forecast for Zhongheng Electric from 2025 to 2027 is 2.67 billion yuan, 3.63 billion yuan, and 5.24 billion yuan, representing year-on-year growth rates of 36.2%, 35.7%, and 44.6% respectively. The net profit is expected to be 210 million yuan, 310 million yuan, and 440 million yuan for the same period, with year-on-year growth rates of 89.2%, 51.1%, and 40.6% [7] - The report maintains a "Buy-B" rating for the company, with projected EPS of 0.37, 0.56, and 0.78 for 2025 to 2027, corresponding to PE ratios of 41.1x, 27.2x, and 19.3x based on the closing price on July 10 [7]