中国西电：国之电装，重器西成

Investment Rating - The investment rating for the company is "Buy" and it is maintained [5]. Core Viewpoints - The report highlights that China Xidian is one of the largest manufacturers of high, ultra-high, and extra-high voltage substation equipment in China, having participated in all major ultra-high voltage projects in the country [5][6]. - The company has a stable historical revenue with significant profit fluctuations linked to the cycles of ultra-high and extra-high voltage projects, and it is expected that profitability will improve significantly as these projects peak again [6][8]. - The report emphasizes the strong growth potential in the electric grid business, particularly with the recent surge in ultra-high voltage project tenders, which have increased significantly in 2023 [6][29]. Summary by Sections Company Overview - China Xidian is a leading enterprise in the manufacturing of substation equipment, with a comprehensive product range and strong capabilities in system integration [5][6]. - The company has multiple manufacturing bases across China, including in Shaanxi, Sichuan, Liaoning, Shandong, Jiangsu, Shanghai, and Guangzhou [5][6]. Financial Performance - The company's revenue has shown stability, with a historical high of 20.85 billion yuan in 2023, marking a continuous increase in recent years [18]. - Profit margins have been volatile, with significant fluctuations in net profit due to varying gross margins and expense ratios [22][19]. Business Segments - The company operates in several segments, including transformers, switches, power electronics, capacitors, and engineering trade, with a focus on providing complete solutions for power transmission and distribution [17][15]. - The transformer segment has seen significant activity, with the company holding a leading market share in various equipment types, including converter transformers and circuit breakers [31][32]. Market Opportunities - The report notes that the ultra-high voltage equipment market is experiencing a boom, with a total tender amount of 41.54 billion yuan in 2023, representing a year-on-year increase of 11 times [6][29]. - The company has successfully secured contracts worth 7.93 billion yuan in various equipment tenders, leading the market in several categories [31][32]. International Expansion - China Xidian is expanding its international presence through subsidiaries and has established manufacturing bases in countries such as Egypt and Indonesia, exporting to over 100 countries [7][6]. - The company aims to enhance its competitiveness in the global market by leveraging its established brand and partnerships with international giants [7][6].