国电南瑞：再论国电南瑞成长动能和潜力

Investment Rating - The investment rating for the company is "Buy" and is maintained [5]. Core Views - The report emphasizes that the company is one of the most certain growth entities in the power equipment industry, both in the short and medium to long term. In the short term, all four major business segments are expected to grow in 2024, supported by industry prosperity and order backing. In the medium to long term, the company's prominent market position and alignment with the core pain points of enhancing renewable energy consumption capacity suggest a clear future development direction, with IGBT and overseas markets expected to contribute significant incremental growth [2][8][53]. Summary by Sections Introduction - The company is a leader in the power equipment industry, surpassing other companies in terms of revenue, profit scale, and market capitalization. The report reiterates the company's growth potential and momentum as the new power system construction progresses [5][13]. Short-term Growth - The company has four main business segments: power grid automation and industrial control, relay protection and flexible transmission, power automation information communication, and power generation and water conservation. All segments are expected to see strong order support and growth in 2024. Specific highlights include: 1. Power Grid Automation: Significant growth in bidding for substation automation and related products, with a 28% increase in protective equipment bids in 2023 [6][16]. 2. Flexible Transmission: The company leads in market share for high-voltage direct current (HVDC) products, with expectations for continued high bidding volumes in 2024 [23][26]. 3. Power Information Communication: The digital equipment bidding in 2023 reached approximately 8.5 billion yuan, with a year-on-year growth of 5%-10% [31][32]. 4. Power Generation and Water Conservation: Benefiting from the rapid growth of domestic wind and solar projects, with revenue growth of 68% in 2022 and 89% in the first half of 2023 [33][34]. Medium to Long-term Growth - The company's growth remains clear, with a focus on enhancing renewable energy consumption capacity. The company is well-positioned to benefit from the trends in power grid development, particularly in automation and information communication, flexible transmission, and power generation. Additionally, the company is actively pursuing new products and markets, particularly in IGBT technology and overseas expansion, which are expected to contribute significantly to future growth [7][36][44][49]. Investment Recommendations - The company is expected to achieve net profits of approximately 7.4 billion yuan in 2023 and 8.5 billion yuan in 2024, corresponding to valuation multiples of 27 and 23 times, respectively. The report maintains a "Buy" rating based on the company's strong growth prospects [8][53].