江苏神通：核电确收拐点已至，助力业绩高增

Investment Rating - The report does not explicitly state an investment rating for the company Core Insights - Jiangsu Shentong is a leading company in the nuclear valve industry, focusing on four main business segments: nuclear power, energy, metallurgy, and energy-saving services. In 2023, the revenue from these segments was 690 million, 650 million, 360 million, and 260 million respectively, accounting for 33%, 31%, 17%, and 12% of total revenue [10][11] - The nuclear valve market in China is expected to grow at a compound annual growth rate (CAGR) of 13% from 2023 to 2030, reaching approximately 131 billion by 2030 [3][24] - The company plans to raise 300 million through a private placement to invest in high-end valve intelligent manufacturing projects, primarily targeting the nuclear energy equipment sector [10] Summary by Sections Business Overview - Jiangsu Shentong was established in 2001 and listed in 2010, focusing on industrial valves, particularly for nuclear power plants and the steel industry. The company has expanded its business scope through acquisitions, including a 100% stake in Wuxi Flange Forging Co., Ltd. in 2015 [10][11] Market Space - The nuclear valve market in China is projected to grow significantly, with the number of operational and under-construction nuclear power units increasing. The approval of new nuclear projects has resumed since 2022, indicating a positive outlook for the industry [24][25][26] Revenue Breakdown - In 2023, the revenue breakdown by product categories was 970 million for valves, 700 million for flanges and forgings, and 260 million for energy-saving services, representing 45.5%, 32.9%, and 12.2% of total revenue respectively [10][11] Financial Projections - The company expects to maintain a steady growth trajectory, with projected revenues of 25.46 billion in 2024, 30.82 billion in 2025, and 37.68 billion in 2026, reflecting a year-on-year growth rate of 19.34%, 21.08%, and 22.26% respectively [42] Competitive Landscape - Jiangsu Shentong holds a dominant market share in the nuclear valve sector, with over 90% market share for its nuclear-grade butterfly and ball valves. The company competes with other players like China Nuclear Technology and Neway Valve, but maintains a strong position due to its high-quality products and established reputation [29][10] New Business Developments - The company is also venturing into the low-altitude aviation engine market through its stake in Hongpeng Aviation, which is set to launch a production line for heavy oil piston engines in 2024, aiming for an annual delivery capacity of 500 units [14][38]