JSSMDL(SH:603530) Tianfeng Securities·2024-05-25 13:02Investment Rating - The report assigns a "Hold" rating for the company with a target price of 23.82 CNY, based on a 2024 PE of 30.5X [9]. Core Viewpoints - The company is a leading domestic player in composite external insulators for power systems, benefiting from global investment in power grids and accelerating demand for insulators [5][6]. - The company has established partnerships with major electrical equipment manufacturers like ABB, GE, and Siemens, and has expanded its market presence to over 100 countries, with overseas revenue accounting for over 50% in 2023 [5][18]. - The company is expected to see significant revenue growth, with projections of 15.18 billion CNY in 2024, 22.23 billion CNY in 2025, and 29.85 billion CNY in 2026, reflecting year-on-year growth rates of 58.3%, 46.5%, and 34.3% respectively [7]. Company Overview - The company was founded in 1996 and has continuously innovated, developing nine major product categories that fill domestic and international gaps, achieving performance levels that meet international standards [18]. - The company’s main products include composite external insulators for substations, transmission lines, and rubber sealing components, with the revenue distribution in 2023 being 68.0% from substations, 9.6% from transmission lines, and 20.3% from rubber sealing components [6][76]. - The company has a high concentration of ownership, with the main shareholders holding 82.05% of the total shares, and has implemented phased stock incentive plans to clarify development goals [4][66]. Industry Insights - The domestic ultra-high voltage (UHV) projects are expected to peak in 2024-2025, which will drive demand for insulators as the capacity of key transmission lines increases [6]. - Globally, major economies are accelerating investments in power grids, with cross-border interconnections becoming a significant trend, which is anticipated to sustain growth in related power equipment investments [6]. - The company’s composite insulators have a lifespan exceeding 30 years without maintenance, addressing the shortcomings of traditional insulators and enhancing their competitive edge in the market [6][76].