WOER(002130)2024-05-06 15:16Key Points Industry and Company Involved 1. Anixter's In-Rack Line Cartridge Product: The focus is on Anixter's in-rack line cartridge product, with the cost of the cartridge being 90% wire material. 2. LTK Leiting: A key supplier in the line material market, with significant market share and expected growth. 3. Wolfsberg: A company with a strong traditional business and expected growth in high-speed line and outdoor line segments. Core Views and Arguments 1. Anixter Pricing and Margin: Anixter quotes between 4-5 USD per meter for NV, with a gross margin of around 50%. The finished product is priced at 120,000-160,000 RMB per rack for NVL36 and NVL72 respectively. 2. Market Size and Growth: The NVL36+72 market is projected to reach 58,000 units in 2024-2025, with NVL36 accounting for most of the demand. The cartridge product value is estimated to exceed 8 billion RMB. 3. LTK Leiting's Market Position: LTK Leiting is a major supplier of 224G line materials, with a strong quality and capacity advantage over competitors. The company is expected to generate 24-32 billion RMB in revenue and 9.6-16.8 billion RMB in profit. 4. Wolfsberg's Growth Prospects: Wolfsberg's traditional business is expected to generate 9-10 billion RMB in profit in 2024, with high-speed line and outdoor line segments contributing an additional 12-19 billion RMB. The company is valued at 20x PE, with a target market capitalization of 44-60 billion RMB. 5. Industry Trends: The industry is expected to see significant growth due to the adoption of cartridge copper cable connectors by NV and Google. The market is expected to grow further as more manufacturers adopt this technology. Other Important Information 1. Anixter's Wire Material Suppliers: Anixter's main wire material suppliers include Times Microwave, Anlan Wanjing, and Jinghong Sheng, with Times Microwave being the primary supplier. 2. LTK Leiting's Production Capacity: LTK Leiting's existing production capacity for 112G line materials is 250 million RMB, with plans to expand to 1 billion RMB. The company is expected to generate 30-40 billion RMB in outsourced production. 3. Anlan Wanjing: Anlan Wanjing is a new supplier with a strong track record in 112G line materials. The company's 224G line material production is expected to start soon. 4. Shenyu: Shenyu is expected to be a key player in the 224G line material market, with a strong relationship with Anixter.