TBEA(SH:600089) Guoxin Securities·2024-03-06 16:00Investment Rating - The report assigns an "Accumulate" rating for the company, marking it as the first coverage [5]. Core Views - The company is steadily developing its integrated power transmission and transformation business while simultaneously advancing coal and renewable energy generation [1]. - The company has a strong coal resource endowment and significant regional advantages, being one of the most favorable mining areas in Xinjiang [2]. - The company’s revenue is projected to grow from 933 billion yuan in 2023 to 1067 billion yuan in 2025, with a corresponding net profit forecast of 107 billion yuan in 2023, declining to 106 billion yuan in 2025 [2]. Summary by Sections Company Overview - The company, founded in 1993, is a key player in China's major equipment manufacturing industry and was the first listed company in the transformer sector [12]. Business Segments - The main business segments include power transmission and transformation equipment, coal, renewable energy, and other businesses. In H1 2023, the revenue breakdown was as follows: 32% from power transmission equipment, 20% from coal, 34% from renewable energy, and 14% from other businesses [21][23]. Financial Forecast - The company achieved a revenue of 498 billion yuan in H1 2023, with a year-on-year growth of 5%. However, the net profit declined by 15% to 94 billion yuan [1][21]. - The projected revenues for 2023-2025 are 933 billion yuan, 980 billion yuan, and 1067 billion yuan, with net profits of 107 billion yuan, 87 billion yuan, and 106 billion yuan respectively [2][3]. Valuation and Investment Advice - The reasonable valuation range for the company's stock is set between 17.50 and 18.60 yuan, indicating a potential premium of 13%-19% over the current stock price [2][5].