◎记者 黄淑慧 南通市地区生产总值 2020年迈上万亿元台阶 2024年达到1.24万亿元，同比增长6.2% 沪苏通大桥 航拍云雾缭绕的狼山古刹与现代都市 弄潮江海风正劲——解码万亿南通产业升级路 "遨游半在江湖里，始觉今朝眼界开。"站在江苏南通狼山之巅极目远眺，江水浩荡，奔流向海，气势磅 礴。 南通，这片江海相拥的土地，曾是中国近代民族工业的重要发祥地之一，以敢为人先的实践点燃了实业 救国的星火，留下了"近代第一城"的历史印迹；曾作为首批14个沿海开放城市之一，以"纺织之乡""建 筑铁军"等名片，在改革开放的春风里激流勇进。如今，站在"十四五"收官与"十五五"启航的历史交汇 点，面对多重战略机遇叠加的天时，"左右逢源""南通好通"的地利，南通正在加快打造江苏高质量发展 重要增长极，建设长三角北翼中心城市，书写跨江向海、通向未来的新篇章。 南通，始终是江海大地上勇立涛头的弄潮儿。 今年前三季度9788.9亿元，同比增长5.4% 南通市海岸线 长达276公里，约占江苏的1/3 百年实业 薪火相传 源远流长，生生不息。南通的底蕴深藏在"近代第一城"的历史遗存和张謇精神的代代相传中。 南通唐闸大生纱厂的老厂区内，地 ...

Group 1 - The company, Dalian Electric Porcelain Group Co., Ltd., has been recommended as a candidate for the procurement of transmission and transformation project materials by State Grid Corporation of China, with a total pre-bid amount of approximately 59 million yuan, accounting for 3.94% of the company's audited revenue for 2024 [1][4] - The procurement includes 111,000 porcelain insulators valued at about 51 million yuan and over 5,100 composite insulators valued at approximately 8 million yuan [1][3] - The State Grid Corporation of China is a large state-owned enterprise focused on the investment, construction, and operation of power grids, while its subsidiary, State Grid Materials Co., Ltd., serves as the centralized bidding agency for major engineering material supply [3][4] Group 2 - The project win is expected to have a positive impact on the company's operating performance for the current year, as there is no related party relationship between the company and State Grid Corporation [4] - The bidding process is centralized and will be confirmed after a three-day public notice period, pending no objections [5] - As of the announcement date, the company has not yet received a formal bid notification, indicating that the signing of the project contract remains uncertain [5]

Core Viewpoint - Dalian Electric Porcelain (002606.SZ) announced that its wholly-owned subsidiary, Dalian Electric Porcelain Group Transmission and Transformation Materials Co., Ltd. (referred to as "Dalian Materials"), has been recommended as a candidate for the sixth batch of procurement by State Grid Corporation of China for 2025, specifically for porcelain insulator packages 2 and 3, as well as composite insulator package 6, with a pre-bid amount totaling approximately 59 million yuan [1] Group 1 - Dalian Materials is the recommended candidate for the procurement of insulator materials for State Grid Corporation of China [1] - The total pre-bid amount for the recommended packages is approximately 59 million yuan [1]

Core Viewpoint - Dalian Electric Porcelain's subsidiary, Dalian Electric Porcelain Group Transmission and Transformation Material Co., Ltd., has been recommended as a candidate for the 65th batch of procurement by State Grid Corporation of China for 2025, specifically for porcelain insulators and composite insulators, with a pre-bid amount of approximately 59 million yuan [1] Group 1 - The company has a full subsidiary involved in the procurement process [1] - The recommended bid amount is approximately 59 million yuan [1] - The procurement is part of the State Grid's ongoing projects for transmission and transformation materials [1]

Core Points - Dalian Electric Porcelain announced that its subsidiary, Dalian Electric Porcelain Group Transmission and Distribution Material Co., Ltd., has been recommended as a winning candidate for the National Grid Corporation's procurement for the 65th batch in 2025 [1] - The company is set to supply over 111,000 porcelain insulators with a pre-bid amount of approximately 51 million yuan, and over 5,100 composite insulators with a pre-bid amount of around 8 million yuan [1] - The total pre-bid amount of approximately 59 million yuan accounts for 3.94% of the company's audited operating revenue for 2024 [1]

Financial Performance - Company reported total revenue of 581 million yuan for the first half of 2025, a year-on-year increase of 2.16% [1] - Net profit attributable to shareholders was 46.58 million yuan, a year-on-year decrease of 41.07% [1] - In Q2, total revenue was 358 million yuan, down 10.09% year-on-year, and net profit was 26.36 million yuan, down 61.35% year-on-year [1] - Gross margin was 28.92%, a decrease of 13.03% year-on-year, while net margin was 8.01%, down 42.29% year-on-year [1] - Total operating expenses were 81.71 million yuan, accounting for 14.06% of revenue, an increase of 18.14% year-on-year [1] - Earnings per share were 0.11 yuan, a decrease of 38.89% year-on-year [1] Operational Insights - Company has three production bases located in Dalian, Jiangxi, and Fujian, with Dalian focusing on UHV products, Jiangxi's first phase achieving breakeven in June 2024, and Fujian primarily for export and domestic support [4][5] - Jiangxi factory's second phase is expected to start production in Q3 2025, with a designed capacity of 80,000 tons per year [5] Market Position and Orders - Company has secured over 700 million yuan in contracts for UHV projects and has achieved record-high overseas orders this year [6] - The company is the largest supplier of porcelain insulators for major power projects in China, including the Baihetan and Three Gorges projects [6] Product Analysis - The gross margin for UHV products is maintained between 35% to 40%, while conventional products have a lower margin by about 10 percentage points [7] - Company offers three types of insulators: porcelain, glass, and composite, with porcelain being the most widely used due to its stability and durability [8][9] Market Impact - The impact of the US-China tariff war on the company's export performance is minimal, with US sales accounting for less than 1% of total sales [9] - The overseas market is expected to account for 20%-30% of sales after the first phase of the Jiangxi factory, increasing to 35%-40% after the second phase [9]

Summary of the Conference Call for Dalian Electric Porcelain Company Overview - Dalian Electric Porcelain is a leading company in the high-voltage insulator market in China, established in 1915, with a significant presence in over 100 countries and partnerships with more than 30 regions [3][20]. Financial Performance - In the first half of 2025, the company reported revenue of 580 million yuan and a net profit of 46 million yuan, showing a year-on-year decline due to product structure adjustments and a decrease in ultra-high voltage orders [2][3]. - The overall gross margin decreased due to factory renovations and the export product grades from the Jiangxi factory [2][8]. Revenue Sources - Domestic revenue growth was primarily driven by international orders, particularly from Saudi Arabia, which were processed through domestic EPC companies, contributing to higher gross margins despite being recorded as domestic sales [2][5]. - The company plans to increase sales of composite insulators to 200-300 million yuan over the next two to three years and diversify its product offerings [10][27]. Market Dynamics - The gross margin for international orders has stabilized, with a competitive market strategy leading to a decrease in the proportion of high-margin products [2][4]. - The company expects a significant increase in ultra-high voltage project deliveries in the second half of 2025, with several large orders from previous years being fulfilled [11][12]. Product Performance - There was a divergence in revenue between composite insulators and power electronics due to internal structural adjustments and technological upgrades [9]. - The company is focusing on developing new products such as hollow insulators and lightning arresters to diversify its offerings [10]. Future Outlook - The company anticipates a turning point in performance in the second half of 2025, with confidence in 2026 and 2027 due to the expected revenue recognition from numerous high-voltage projects [27]. - The competitive landscape in the low-end market is expected to intensify, with potential price declines, but the company aims to maintain its focus on the export market [19][20]. Investment and Dividend Strategy - Historically, the company has maintained a low dividend payout ratio to fund internal expansion projects. However, it plans to consider increasing the dividend ratio in the future if no significant capital expenditures are required [28]. Key Challenges - The company faces challenges in the international certification process for high-voltage products, which can take two to three years and involve significant costs [26]. - The domestic high-voltage insulator market is experiencing increased competition, particularly in the low-end segment, which may impact pricing strategies [19][23]. Conclusion - Dalian Electric Porcelain is navigating a complex market environment with strategic adjustments aimed at enhancing its competitive position both domestically and internationally. The company is optimistic about future growth driven by increased project deliveries and market expansion efforts.

Core Viewpoint - Dalian Electric Porcelain's stock price has decreased by 2.25% to 9.57 yuan, with significant trading volume and financial activity reported [1] Company Overview - Dalian Electric Porcelain specializes in the research, production, and sales of porcelain for transmission lines and composite insulators, adhering to international and multiple national standards [1] - The company has three major production bases located in Dalian, Fujian, and Jiangxi, with the Jiangxi factory's second phase expected to commence production in Q3, achieving a standard design capacity of 80,000 tons per year [1] Recent Developments - In 2025, the company has secured over 700 million yuan in domestic ultra-high voltage line and State Grid batch centralized procurement projects, along with significant orders from power projects in Saudi Arabia, the Philippines, and Bangladesh, marking a historical high for new overseas orders [1] - On August 13, the company hosted multiple institutional research meetings to discuss business development and future plans [1] Financial Activity - On August 14, the net outflow of main funds was 15.3745 million yuan, with a cumulative net outflow of 17.8512 million yuan over the past five days [1]

Group 1 - The Yarlung Tsangpo River downstream hydropower project has a total investment of approximately 1.2 trillion yuan, involving the construction of five hydropower stations and requiring eight ultra-high voltage direct current transmission channels, which is expected to boost the development of related industries such as ultra-high voltage transmission equipment [1] - Dalian Electric Porcelain is a leading enterprise in the insulator industry, known for its strong manufacturing capabilities and technological expertise, having supplied insulator products for major projects like the Baihetan Hydropower Station and the Three Gorges Project [2][3] - The company has a significant presence in the high-end market, focusing on the research, production, and sales of porcelain insulators, composite insulators, and electrical porcelain fittings, with clients including domestic and international power grid companies [2] Group 2 - In 2024, Dalian Electric Porcelain achieved a revenue of 1.496 billion yuan, representing a year-on-year growth of 78.21%, and a net profit of 211 million yuan, up 303.30% year-on-year, with overseas revenue increasing by 133.82% [3] - The company has maintained high R&D investment, with R&D expense ratios of 6.70%, 5.41%, and 7.91% from 2023 to Q1 2025, which is higher than the industry average [3] - Dalian Electric Porcelain has been awarded multiple contracts from the State Grid, with pre-bid amounts totaling approximately 72.5 million yuan in 2024, reflecting strong growth momentum driven by policy support [4][5] Group 3 - The company is expanding its production capacity, with the first phase of its digital factory in Jiangxi achieving a monthly capacity of around 4,000 tons and reaching breakeven in mid-2024, while the second phase is set to increase capacity by approximately 20,000 tons per year by Q3 2025 [5] - The strategic implementation of the Yarlung Tsangpo River downstream hydropower project is expected to benefit leading suppliers of hydropower supporting equipment and core equipment for power grid delivery, enhancing Dalian Electric Porcelain's position in the global insulator market [5]

Investment Rating - The report assigns a "Buy" rating to the company, with a target price of 10.92 CNY based on a closing price of 9.10 CNY [5]. Core Views - The company is a leading player in the porcelain insulator industry, with strong overseas order performance and a significant increase in revenue and profit in 2024 [1][2]. - The company has established a solid international marketing network and is expanding its production capacity, particularly in Jiangxi, which is expected to enhance its revenue growth [2][3]. Summary by Sections 1. Leading Company in Porcelain Insulators - Dalian Electric Porcelain Group was founded in 1915 and listed in 2011, with a comprehensive product matrix that meets various national industry standards [14]. - The company has a strong historical presence in the international market, having supplied products for the first domestic and world high-voltage lines [14]. 2. Accelerated Construction of UHV Projects - The demand for porcelain insulators is driven by the increasing domestic electricity consumption and investment in the power grid, with a notable rise in UHV construction [37][40]. - In 2024, the total electricity consumption in China reached 98,521 billion kWh, with a 15.3% increase in grid investment [37]. 3. Stable Leadership and Growth Potential - The management team has extensive experience and a long-term strategic vision, with significant improvements in company performance since 2019 [3][67]. - The company has a leading position in the domestic bidding for UHV porcelain insulators, with a market share of 28% in 2024 and 46% in 2025 for UHV porcelain insulators [2][67]. 4. Financial Performance and Forecast - In 2024, the company achieved a revenue of 1.496 billion CNY, a year-on-year increase of 78.21%, and a net profit of 211 million CNY, up 303.3% [22][4]. - The forecast for 2025-2027 anticipates revenues of 1.723 billion CNY, 1.950 billion CNY, and 2.168 billion CNY, with corresponding net profits of 230 million CNY, 280 million CNY, and 330 million CNY [3][4].