Investment Rating - The investment rating for the company is "Outperform" (maintained) [2] Core Views - The company reported a total revenue of 3.585 billion yuan for 2024, representing a year-on-year growth of 20.19%, and a net profit attributable to shareholders of 132.92 million yuan, up 8.43% year-on-year [2] - The company is expected to achieve net profits of 148 million yuan, 184 million yuan, and 210 million yuan for the years 2025, 2026, and 2027 respectively, with corresponding EPS of 0.55, 0.68, and 0.78 yuan [2] - The current stock price corresponds to a PE ratio of 25.4, 20.4, and 17.9 for the years 2025, 2026, and 2027 [2] Revenue Breakdown - The company achieved a revenue of 3.295 billion yuan from power cables in 2024, a year-on-year increase of 22.16%, with power cables, electrical equipment cables, and bare wires accounting for 91.93%, 7.65%, and 0.41% of total revenue respectively [3] - Sales revenue in the East China region reached 2.695 billion yuan, accounting for 75.18% of total revenue, with a year-on-year growth of 36.32% [3] - Major clients include State Grid Corporation and China Southern Power Grid, contributing 51.57% and 11.03% of sales revenue respectively, with the top five clients accounting for 74.32% of total sales [3] Market Expansion - The company is actively expanding its market presence among large state-owned enterprises and has made significant progress in this area [4] - The company is also increasing its efforts in foreign trade, establishing an independent foreign trade team to expand its overseas cable market business [4] - A procurement framework contract has been signed with Wanhua Chemical Group for the supply of power cables [4] Financial Summary and Valuation Metrics - The company’s projected revenues for 2025, 2026, and 2027 are 4.077 billion yuan, 4.696 billion yuan, and 5.279 billion yuan respectively, with year-on-year growth rates of 13.7%, 15.2%, and 12.4% [6] - The net profit attributable to shareholders is projected to grow to 148 million yuan, 184 million yuan, and 210 million yuan for the years 2025, 2026, and 2027, with corresponding year-on-year growth rates of 11.1%, 24.4%, and 14.0% [6] - The company’s gross margin is expected to be 12.2%, 12.2%, and 11.8% for the years 2025, 2026, and 2027 respectively [9]