3S(SH:605305) Guoxin Securities·2024-04-07 16:00Investment Rating - The investment rating for the company is "Buy" [4] Core Views - The company is a leading enterprise in high-altitude wind power equipment, with its products successfully applied in 61 countries and regions across 16 industries [6][10] - The company plans to establish a wholly-owned subsidiary in Brazil with an investment of $5 million, which aligns with national policies and the company's development strategy, enhancing its international market competitiveness [5] - The global wind power market is expected to maintain stable growth from 2024 to 2027, with a projected CAGR of 8% for onshore lifting equipment and 19% for offshore lifting equipment [6] - The company anticipates achieving revenues of 1.08 billion, 1.27 billion, and 1.51 billion yuan for 2023, 2024, and 2025 respectively, with corresponding net profits of 191 million, 251 million, and 322 million yuan [7] Company Overview - The company has a clear ownership structure, with the controlling shareholder being Mr. Liu Zhixin, who holds 30% of the shares [12] - The management team is stable and has extensive industry experience, with an average tenure of over ten years [16] - The company focuses on high-altitude safety equipment and services, holding a 70% market share in the domestic wind power sector [18] Market and Financial Performance - The company has seen a significant increase in overseas orders, which accounted for 50% of new contracts in 2023, with higher gross margins compared to domestic sales [20][29] - The company’s revenue from specialized high-altitude safety lifting equipment and protective equipment exceeds 90% of total revenue, with key products being tower lifting machines and anti-climbing devices [40] - The company has maintained a gross margin above 40% over the past five years, despite challenges from rising raw material costs and increased market competition [48] Industry Analysis - The domestic wind power market is experiencing stable development, with a notable increase in offshore wind power approvals in 2023 [55][78] - The international wind power market is recovering, with significant growth expected in offshore wind installations, particularly in Europe and North America [61][62]