XJEC(SZ:000400) Soochow Securities·2025-10-28 07:03Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The demand for ultra-high voltage direct current transmission is strong, positioning the company as a leader in nuclear fusion power supply [1] - The company is expected to achieve significant revenue growth driven by its stable traditional business and improving profitability in new energy and charging pile sectors [1] - The company has a solid order backlog in ultra-high voltage projects, ensuring long-term industry prosperity [1] Financial Forecasts - Total revenue is projected to grow from 17,061 million RMB in 2023 to 21,874 million RMB by 2027, reflecting a compound annual growth rate (CAGR) of approximately 10.04% [1] - Net profit attributable to shareholders is expected to increase from 1,005 million RMB in 2023 to 2,126 million RMB in 2027, with a CAGR of about 24.64% [1] - The earnings per share (EPS) is forecasted to rise from 0.99 RMB in 2023 to 2.09 RMB in 2027 [1] Market Data - The closing price of the stock is 26.54 RMB, with a market capitalization of approximately 27,034.23 million RMB [6] - The price-to-earnings (P/E) ratio is projected to decrease from 26.89 in 2023 to 12.72 in 2027, indicating an attractive valuation over time [1][10] Operational Insights - The company has shown effective cost control, with operating expenses increasing by only 7.6% year-on-year in the first three quarters of 2025 [1] - The company’s cash flow from operating activities is expected to significantly improve, reaching 6,105 million RMB in 2025 [10]