YINLUN(SZ:002126) Orient Securities·2026-03-06 02:25Investment Rating - The report maintains a "Buy" rating for the company with a target price of 59.67 CNY [3][6]. Core Insights - The gas generator business is expected to see both volume and price increases, becoming a key driver for medium to long-term profit growth [2][9]. - The company has secured a project for gas generator exhaust treatment systems from an international mechanical equipment company, with expected annual sales of approximately 1.31 billion USD (around 900 million CNY) starting in Q4 of this year [9]. - The company is positioned to benefit from the growing demand for gas turbines and generators, particularly in North America, driven by the AI data center construction boom [9]. Financial Forecasts - The projected EPS for 2025-2027 is 1.14, 1.53, and 2.20 CNY respectively, with a slight adjustment in revenue and gross margin for 2026-2027 [3]. - Revenue is expected to grow from 11,018 million CNY in 2023 to 24,427 million CNY in 2027, reflecting a CAGR of approximately 34.6% from 2026 to 2027 [5][12]. - The net profit attributable to the parent company is forecasted to increase from 612 million CNY in 2023 to 1,863 million CNY in 2027, with a growth rate of 44.1% in 2027 [5][12]. Competitive Position - The company has established a strong competitive advantage in the gas generator sector, with long-term partnerships with major international manufacturers such as Caterpillar and Cummins [9]. - The company has built production facilities in Mexico, the United States, and Europe, achieving stable profitability in the North American market [9].