Core Viewpoint - TBEA Co., Ltd. has shown significant stock price growth in 2023, with a year-to-date increase of 29.06% and notable gains over various trading periods, indicating strong market performance and investor interest [2]. Financial Performance - For the first half of 2025, TBEA achieved a revenue of 48.401 billion yuan, representing a year-on-year growth of 1.17%, while the net profit attributable to shareholders was 3.184 billion yuan, up by 4.93% [2]. - Cumulative cash dividends since the A-share listing amount to 15.118 billion yuan, with 6.591 billion yuan distributed over the past three years [3]. Stock Market Activity - On September 19, TBEA's stock price rose by 2.22%, reaching 16.12 yuan per share, with a trading volume of 2.017 billion yuan and a turnover rate of 2.51% [1]. - The net inflow of main funds was 37.3884 million yuan, with significant buying and selling activity from large orders [1]. Shareholder Information - As of June 30, 2025, TBEA had 319,300 shareholders, a decrease of 4.42% from the previous period, with an average of 15,826 circulating shares per shareholder, an increase of 4.62% [2]. - The third-largest circulating shareholder is Hong Kong Central Clearing Limited, holding 222 million shares, an increase of 66.6393 million shares from the previous period [3].

Company Overview - TBEA Co., Ltd. is located in Changji City, Xinjiang Uygur Autonomous Region, established on February 26, 1993, and listed on June 18, 1997. The company primarily engages in power transmission and transformation, renewable energy, and energy-related businesses [1][2]. Financial Performance - As of March 31, 2025, TBEA reported operating revenue of 23.383 billion yuan, a year-on-year decrease of 0.77%, and a net profit attributable to shareholders of 1.6 billion yuan, down 19.74% year-on-year [2]. - The company has cumulatively distributed 15.118 billion yuan in dividends since its A-share listing, with 6.591 billion yuan distributed over the past three years [3]. Stock Performance - On August 27, TBEA's stock price fell by 2.06%, trading at 14.24 yuan per share, with a total market capitalization of 71.952 billion yuan. The stock has increased by 14.01% year-to-date, with a 5-day increase of 5.72%, a 20-day increase of 2.89%, and a 60-day increase of 24.37% [1]. - The stock experienced a net outflow of 225 million yuan in principal funds, with significant selling pressure observed [1]. Shareholder Structure - As of March 31, 2025, TBEA had 334,000 shareholders, a decrease of 0.44% from the previous period, with an average of 15,127 circulating shares per shareholder, an increase of 0.45% [2]. - The top ten circulating shareholders include Hong Kong Central Clearing Limited and Huatai-PB CSI 300 ETF, with both reducing their holdings compared to the previous period [3]. Business Segments - TBEA's main business revenue composition includes: electrical equipment products (22.87%), coal products (19.70%), renewable energy products and engineering (18.95%), wire and cable products (16.05%), aluminum electronic materials and aluminum alloy products (5.73%), power generation (5.73%), transmission and transformation engineering (5.04%), and others [1]. Industry Classification - TBEA is classified under the power equipment sector, specifically in the transmission and transformation equipment category, with involvement in concepts such as polysilicon, western development, ultra-supercritical power generation, DC transmission, and transformers [2].

Investment Rating - The report maintains an "Outperform the Market" rating for the company [6][31]. Core Views - The company is expected to see steady growth in coal production, gradual reduction in losses from the polysilicon business, and sustained investment in the power grid, leading to an adjusted profit forecast of 6.2 billion yuan for 2025, with new profit forecasts for 2026 and 2027 at 7.8 billion and 9.4 billion yuan respectively, representing year-on-year growth of 49.8%, 25.9%, and 20.6% [4][31]. Summary by Sections Financial Performance - In Q1 2025, the company reported revenue of 23.38 billion yuan, a year-on-year decrease of 1%, and a net profit of 1.6 billion yuan, down 20% year-on-year. The overall gross margin was 20.6%, a decrease of 2.8 percentage points year-on-year, while the net margin was 7.1%, down 3.0 percentage points year-on-year [1][9]. - For the full year 2024, the company achieved revenue of 97.87 billion yuan, flat year-on-year, and a net profit of 4.13 billion yuan, down 61% year-on-year, primarily due to significant losses in the polysilicon business [9][30]. Business Segments - The company’s revenue from various segments in 2024 included: - Power transmission and transformation products: 42.99 billion yuan (+16% year-on-year) - New energy products and engineering: 18.53 billion yuan (-34% year-on-year) - Coal: 19.26 billion yuan (+6% year-on-year) - Power generation: 5.6 billion yuan (+31% year-on-year) - New materials: 5.61 billion yuan (+8% year-on-year) [2][20]. - The polysilicon business faced significant pressure, with prices dropping below production costs, leading to a production volume of 198,800 tons (+4% year-on-year) and a sales volume of 199,200 tons (-2% year-on-year) in 2024 [3][21]. Market Outlook - The company is expected to achieve a revenue of 105 billion yuan in 2025, a year-on-year increase of 7%, with a gross margin projected to improve to 20% [27][31]. - The coal production is anticipated to steadily increase, reaching 120 million tons by 2026, significantly boosting revenue from the coal business [28][31].

Core Insights - The company reported a decline in revenue and net profit for the fiscal year 2024, with revenue at 97.78 billion yuan, down 0.35% year-on-year, and net profit at 4.135 billion yuan, down 61.37% year-on-year [1][2] Revenue Breakdown - Revenue from electrical equipment and wire and cable products increased by 20.98% and 15.81% respectively, reaching 22.364 billion yuan and 15.692 billion yuan [1] - Coal product revenue was 19.264 billion yuan, impacted by a decrease in coal prices, leading to a gross margin drop of 13.99 percentage points to 32.42% [1] - Revenue from new energy products and engineering saw a significant decline of 33.94%, totaling 18.531 billion yuan, with a gross margin of only 1.41%, down 29.94 percentage points [1] Losses and Impairments - The company faced substantial losses in its polysilicon business due to a significant drop in market prices, leading to a provision for impairment of fixed assets amounting to 1.474 billion yuan [2] - The company also recorded asset impairment losses of 3.56 billion yuan for the year, which negatively impacted overall performance [2] Dividend Distribution - The profit distribution plan for 2024 includes a cash dividend of 2.50 yuan per 10 shares (tax included) for all shareholders [2] Q1 2025 Performance - For Q1 2025, the company reported revenue of 23.357 billion yuan, a decrease of 0.79% year-on-year, and a net profit of 1.6 billion yuan, down 19.74% year-on-year [2] - The company's power generation for Q1 2025 was 8.251 billion kWh, an increase of 24.86% year-on-year, with coal power generation at 6.126 billion kWh, up 28.28% [2] Investment and Expansion - The company is focusing on expanding its renewable energy capacity, announcing an investment of 1.488 billion yuan for a 300MW photovoltaic project [3] - Additionally, the company plans to invest in a coal-to-natural gas project with a total investment of 17.039 billion yuan and a supporting coal supply project costing 0.808 billion yuan [3]