SAFETY(SH:603028) Huaan Securities·2024-05-09 08:00Investment Rating - The report assigns an "Accumulate" rating for the company, marking its first coverage [29]. Core Views - The company is transitioning from its traditional steel wire rope business to focus on the photovoltaic (PV) battery sector, establishing a dual business model of "urban construction + green energy" [29]. - The demand for PV batteries is expected to grow significantly due to the rapid expansion of the domestic and international PV markets, with the N-type TOPCon battery technology being a key focus due to its advantages [29][53]. - The company has established a strong position in the elevator wire rope market, maintaining a leading global market share [15][39]. Summary by Sections 1. Transition to Photovoltaic Battery Sector - The company has shifted its focus to the PV battery industry, with its PV business revenue surpassing traditional business revenue, contributing significantly to overall growth [46]. - The establishment of Suzhou Saifutian New Energy Co., Ltd. marks the company's entry into the PV battery market, with a focus on expanding production capacity [29][39]. 2. Growth in Photovoltaic Market - The report highlights the rapid growth of the PV market, with China's PV module production expected to exceed 750GW in 2024, driving demand for PV batteries [50]. - The N-type TOPCon battery technology is noted for its high efficiency and lower degradation rates, making it a preferred choice in the industry [53][55]. 3. Strong Position in Elevator Wire Rope Market - The company has a well-established brand in the elevator wire rope sector, with a significant market share and partnerships with major elevator manufacturers [15][39]. - The elevator wire rope business has shown stable growth, with a focus on maintenance and replacement markets [15]. 4. Financial Projections - The company is projected to achieve revenues of 37.87 billion, 58.22 billion, and 78.55 billion yuan from 2024 to 2026, with corresponding net profits of 0.71 billion, 1.06 billion, and 1.42 billion yuan [29][31].