Investment Rating - The report initiates coverage with an "Accumulate" rating for the company [2][7]. Core Views - The company is recognized as a "small giant" in insulation fiber materials, rapidly expanding production to seize market opportunities, with significant potential for domestic substitution in ultra-high voltage applications [6][15]. - The company has a comprehensive product range covering all voltage levels, with non-adhesive materials reaching thicknesses of up to 30mm, which positions it favorably in the transformer market [6][15]. - The report forecasts robust revenue growth driven by increasing demand in both domestic and international markets, particularly in the context of ongoing power grid investments and the rise of renewable energy sources [6][55]. Financial Data and Profit Forecast - The company is projected to achieve total revenue of 578 million yuan in 2024, increasing to 1.428 billion yuan by 2027, with year-on-year growth rates of 37.5% and 24.5% respectively [6]. - The net profit attributable to shareholders is expected to grow from 116 million yuan in 2024 to 455 million yuan in 2027, reflecting a compound annual growth rate of 32.1% [6]. - The earnings per share are forecasted to rise from 1.70 yuan in 2024 to 4.98 yuan in 2027, indicating strong profitability [6]. Market Demand and Supply Dynamics - Domestic demand is expected to benefit from a recovery in ultra-high voltage transmission and ongoing upgrades in distribution networks, driven by increasing electricity consumption from emerging industries [6][55]. - Internationally, the company is poised to capitalize on strong global demand and tight supply conditions, with transformer exports projected to grow at an average annual rate of 19.7% from 2020 to 2024 [6][55]. - The report highlights that the company has achieved significant breakthroughs in domestic ultra-high voltage production, with increasing localization rates expected to enhance competitive positioning [6][55]. Product and Technology Advantages - The company’s unique selling propositions include a full voltage coverage strategy and the ability to produce ultra-thick, non-adhesive materials, which are critical for high-voltage applications [6][9]. - The company has established long-term partnerships with leading transformer manufacturers, securing a market share exceeding 30% in key product categories [6][15]. - The report emphasizes the high customer stickiness and business barriers in the industry, which are expected to widen the gap between the company and its competitors as it scales production [6][9]. Valuation and Investment Thesis - The company is expected to achieve net profits of 235 million yuan, 345 million yuan, and 455 million yuan for the years 2025 to 2027, with corresponding price-to-earnings ratios of 41, 28, and 21 times [6][7]. - The report suggests that the company’s valuation is attractive compared to peers, with an average price-to-earnings ratio of 30 times for comparable companies in 2026 [7].
广信科技（920037）：绝缘纤维材料“小巨人”迅速扩产抢占先机特高压国产替代可期