JZNEE(SH:603507) Huafu Securities·2024-02-21 16:00Investment Rating - The report assigns a "Buy" rating for the company with a target price of 42.68 CNY per share, based on a 20x PE for 2024 [19]. Core Views - The company is positioned as a leading supplier of wind and solar components, benefiting from strong demand in both sectors. It has established deep ties with major clients like Siemens and is expanding its footprint in the global solar market [18][36]. - The company has shown significant revenue growth, with a projected CAGR of 63% for net profit from 2023 to 2025, driven by its dual focus on wind and solar energy [50]. Summary by Sections Company Overview - The company started as a traditional steel structure manufacturer and has evolved into a key player in the wind and solar component sectors since 2008, becoming a core supplier for Siemens [36][37]. - The company has diversified its product offerings, including wind turbine components and solar tracking systems, and has established a strong client base with major players in the industry [88]. Financial Performance - The company’s revenue is expected to grow from 39.01 billion CNY in 2023 to 80.18 billion CNY in 2025, with respective year-on-year growth rates of 34% and 33% [4]. - Net profit is projected to increase significantly, reaching 4.1 billion CNY by 2025, with a CAGR of 63% from 2023 to 2025 [50]. Market Position and Growth Drivers - The company is deeply integrated with Siemens, benefiting from the rising demand for offshore wind energy, which is expected to see accelerated growth in both domestic and international markets [27][81]. - The solar business is rapidly expanding, particularly in the U.S. market, where the company is establishing local production to mitigate trade uncertainties [49][50]. Profitability and Valuation - The report forecasts stable gross margins of around 10% for wind assembly and increasing margins for solar components as the company scales its operations [48]. - The average PE for comparable companies is projected to decline from 23x in 2023 to 10x in 2025, indicating a favorable valuation environment for the company [50].