TBEA(SH:600089)2025-12-02 02:08Summary of TBEA Co (600089.SS) Conference Call Company Overview - Company: TBEA Co (600089.SS) - Industry: Power Transmission & Distribution (T&D), Polysilicon, Coal, Aluminum Key Points Financial Performance - Revenue Growth: TBEA's revenue increased by 0.9% year-on-year (yoy) to Rmb72,988 million in 9M25, driven by a 14% increase in the power T&D segment, which includes Rmb35,909 million from electrical equipment sales [12][13] - Net Profit: The net profit rose by 27.6% yoy to Rmb5,484 million in 9M25, with a significant contribution from fair value gains on equity investments [12][14] - Profit Before Tax: Increased by 37.7% yoy to Rmb7,339 million, primarily due to a 30% growth in the power T&D segment [2][14] Segment Performance - Power T&D Segment: Revenue from this segment grew by 14% yoy, with electrical equipment sales contributing Rmb20.24 billion, up 24% yoy [13][14] - Polysilicon Sales: The sales price of polysilicon rebounded significantly, with production of 59,400 tonnes and sales of 54,700 tonnes in 9M25 [20][21] - Coal Sales: Coal sales decreased by 32% yoy to Rmb2,994 million, reflecting reduced demand from coal-fired power plants [2][14] Strategic Initiatives - Revenue Target: TBEA aims to nearly double its revenue from the power T&D segment from Rmb50-60 billion in 2025E to Rmb100 billion by 2030E [1][3] - Export Growth: The company targets to increase its overseas sales mix of electrical equipment from 11% in 9M25 to 30% in 2030E, with new orders from abroad up 88% yoy to US$1.24 billion [1][3][16] - Polysilicon Production: TBEA plans to improve production efficiency and product quality in its polysilicon segment, with a focus on controlling output based on demand [22][24] Market Dynamics - UHV Construction: The company expects more UHV power transmission lines to be approved in the 15th Five-Year Plan (FYP), anticipating a rise in electricity demand and renewable energy integration [18][19] - Offshore Wind Development: TBEA is positioned to benefit from the growth in offshore wind projects, having supplied equipment to about 50% of installed projects in China [19] Valuation and Recommendations - Target Price: The DCF-based target price is set at Rmb26.00, reflecting a 44% increase from the previous estimate [1][26] - Earnings Revision: Net profit estimates for 2025-27E have been raised by 4-6%, supported by higher margins from export sales and increased polysilicon prices [25][26] Additional Insights - Cost Management: The unit cash cost of polysilicon production has decreased to below Rmb30/kg, with total production costs at Rmb34/kg in 3Q25 [20][22] - Coal Production Strategy: TBEA plans to expand its annual coal output from 74 million tonnes to over 100 million tonnes, focusing on value-added coal chemical products [23][24] This summary encapsulates the key insights from TBEA's conference call, highlighting the company's financial performance, strategic initiatives, and market outlook.