Core Viewpoint - The company is a leading MRO (Maintenance, Repair, and Operations) provider, capitalizing on the trend of centralized and digital procurement in state-owned enterprises, with significant growth potential by expanding from the electric power sector into oil and gas, power generation, and other strategic industries [1][2]. Investment Highlights - The company is expected to see continuous revenue and profit growth as it expands into multiple strategic fields, with projected EPS of 0.70, 0.86, and 1.06 yuan for 2025-2027. A target price of 17.71 yuan is set based on a 4.08X PB for 2025, corresponding to a 25.3X PE [2]. Market Potential - The Chinese MRO market shows significant growth potential, with MRO procurement demand accounting for approximately 4-7% of industrial output value. In 2020, the MRO market size reached 2.57 trillion yuan, growing by 15.7% year-on-year. MRO procurement represents only 10% of total procurement but consumes about 80% of procurement departments' time and effort [3]. Business Expansion - The company has developed over 170,000 SKUs across 12 categories of MRO products, primarily serving large state-owned enterprises in the energy sector. In 2024, revenue from the electric power sector is projected to be 1.863 billion yuan, accounting for 51.68% of total revenue [3][4]. Strategic Industry Growth - The company is actively expanding into strategic industries such as oil and gas, power generation, nuclear industry, transportation, and government emergency services, with projected revenue of approximately 1.091 billion yuan from these sectors in 2024, reflecting a year-on-year growth of about 70.97% [4]. Product Development and Profitability - The company has increased investment in self-developed products, with revenue from these products expected to grow from 520 million yuan in 2023 to 671 million yuan in 2024, increasing its revenue share from 17.77% to 18.62%. The gross margin for self-developed products is projected at 51.57%, significantly higher than the 20.32% for distributed products [4].