Investment Rating - The report initiates coverage with a "Buy" rating for the company [4][9]. Core Insights - The company, a subsidiary of the State Grid, is driven by a dual business model of "finance + manufacturing," positioning it to benefit from accelerated investments in the power grid [1][4]. - The carbon asset management business is expected to see sustained high growth due to the establishment of a carbon market framework and increasing trading volumes [2][36]. - The electrical manufacturing segment is poised to benefit from rising investments in distribution networks, with the company being a leader in amorphous transformers [3][46]. Summary by Sections Company Overview - The company is a subsidiary of the State Grid Corporation and has diversified into financial services through significant asset restructuring completed in 2020, which included trust, securities, and futures businesses [1][14]. - In 2024, the company reported total revenue of 11.288 billion yuan, a year-on-year increase of 3.60%, and a net profit attributable to shareholders of 1.574 billion yuan, up 15.39% [1][24]. Carbon Asset Management - The carbon asset management business has shown promising growth, with revenue reaching 0.70 billion yuan in 2024, a 13.39% increase year-on-year, and net profit of 0.10 billion yuan, up 14.51% [2][40]. - The company is the only specialized carbon asset management firm within the State Grid system, focusing on carbon trading and management services [2][40]. Electrical Manufacturing - The company’s subsidiary, ZhiXin Electric, is a leader in amorphous alloy transformers, which are expected to benefit from increasing demand due to their energy efficiency advantages [3][46]. - From 2020 to 2024, ZhiXin Electric's revenue grew from 5.001 billion yuan to 7.375 billion yuan, with a compound annual growth rate (CAGR) of 10%, and net profit increased from 0.16 billion yuan to 1.49 billion yuan, with a CAGR of 75% [3][24]. Financial Forecast and Valuation - The company is projected to achieve revenues of 12.487 billion yuan, 13.908 billion yuan, and 15.578 billion yuan from 2025 to 2027, with year-on-year growth rates of 11%, 11%, and 12% respectively [4][8]. - Net profit is expected to be 1.731 billion yuan, 1.850 billion yuan, and 1.961 billion yuan for the same period, with growth rates of 10%, 7%, and 6% respectively [4][8].