Group 1 - The article highlights the importance of the 500 kV Substation in Zhenjiang as a key hub for the East China Power Grid, facilitating electricity transmission from the northern power plants to the southern regions, including Shanghai and the Yangtze River Delta [3] - The substation is experiencing increased electricity demand due to rising temperatures and economic growth in the region, with the substation expected to contribute 80% of the total load during the summer peak [3][5] - The substation's main transformers, particularly the aging 1 and 2 transformers with a capacity of 750 MVA, are being replaced with new 1000 MVA units to enhance capacity and reliability, in line with national policies promoting equipment modernization [3][5] Group 2 - The construction plan for the new transformers has been optimized to ensure larger capacity without expanding the foundation area, which will help in reducing the construction period [5] - The project aims to complete the installation of ten accessories and secondary cable connections by mid-May, with the new transformer expected to be operational by the end of May, thereby improving the power supply capability for the region [5] - Safety measures are being strictly implemented during the construction process to ensure the safety of workers while maintaining construction efficiency [5]

Investment Rating - The investment rating for the company is "Outperform" (maintained) [4] Core Views - The company is expected to achieve a net profit attributable to shareholders of 134 million yuan in 2024, representing a year-on-year growth of 9.22%. The revenue is projected to reach 3.581 billion yuan, reflecting a year-on-year increase of 20.06% [4] - The company continues to make progress in expanding its domestic power grid market, particularly in the Zhejiang region, which has shown recovery growth [4] - Due to increased competition in the overall cable market and fluctuations in copper prices, the profit forecast for 2024-2026 has been adjusted downwards [4] Financial Summary and Valuation Indicators - Revenue for 2024 is estimated at 3.581 billion yuan, with a year-on-year growth of 20.1% [8] - The net profit attributable to shareholders for 2024 is projected at 134 million yuan, with a year-on-year growth of 9.3% [8] - The company's gross margin is expected to be 12.5% in 2024, with a net margin of 3.7% [12] - The earnings per share (EPS) for 2024 is forecasted to be 0.50 yuan, with a price-to-earnings (P/E) ratio of 19.8 times [8] - The return on equity (ROE) is projected to be 12.0% in 2024, increasing to 14.5% by 2026 [12] Market Expansion and Development - The company is actively expanding its market presence among large state-owned enterprises and has made significant progress in foreign trade [5] - A procurement framework contract has been signed with Wanhua Chemical Group for the supply of power cables, further solidifying its position in the market [5] - The company is also advancing its research and development efforts in 500kV ultra-high voltage cables, which is expected to provide ongoing business momentum due to large-scale updates in the power grid [6]