Investment Rating - The report gives a "Buy" rating for the company with a target price of 7.9 CNY per share, based on a 25x PE ratio and a target market capitalization of 40.3 billion CNY for 2025 [4]. Core Views - The company is a leading manufacturer in China's power transmission and distribution equipment sector, with the highest voltage level products and the most diverse range of products. It has significantly improved its profitability by focusing on core businesses and enhancing operational efficiency, achieving a net profit margin of 6.5% in Q1-Q3 2024 [1][4]. - The company is well-positioned to benefit from the growth in ultra-high voltage (UHV) investments, with a strong market share in both domestic and international markets [2][3]. Summary by Sections Company Fundamentals - The company has the highest voltage level products and the most diverse range of products in China's power transmission and distribution equipment sector. It has been deeply involved in the development of China's power transmission and transformation projects since its establishment [1][16]. - The company became a core subsidiary of the China Electric Equipment Group in 2023, entering a new development phase with significant improvements in quality and efficiency [1][37]. Domestic Market - The company ranks first in the bidding share for State Grid projects, benefiting from the growth in UHV investments. It is expected to secure an average of 61 billion CNY in core equipment orders from UHV projects between 2025 and 2030 [1][2]. - The bidding scale for transmission and transformation projects is expected to grow steadily, with a cumulative bidding scale of 72.86 billion CNY in 2024, a year-on-year increase of 8% [2]. International Market - The global investment in power grids is projected to exceed 450 billion USD by 2025, with the company expanding its international business significantly, achieving a 50% export share in equipment for the first time in 2024 [3][4]. - The company has established a strong presence in international markets, providing services to over 80 countries and regions, with overseas revenue increasing from 11% in 2023 to 13% in the first half of 2024 [3][20]. Profit Forecast and Valuation - The company is expected to achieve revenues of 24.25 billion CNY, 28.36 billion CNY, and 32.72 billion CNY for the years 2024, 2025, and 2026, respectively, with a net profit of 1.20 billion CNY, 1.61 billion CNY, and 2.03 billion CNY, reflecting growth rates of 36%, 34%, and 26% [4][7].