Zhongyan Technology (003001) 国盛证券·2024-10-11 01:07Investment Rating - The report maintains a "Buy" rating for the company [4]. Core Views - The company has won the bid for the geotechnical engineering project of the Jin Qimen Nuclear Power Plant, marking a significant milestone in its entry into the nuclear power sector [1]. - The nuclear power industry in China is set for substantial growth, with the company positioned to benefit from the early stages of geotechnical engineering, which is crucial for project timelines [1][2]. - The market size for nuclear geotechnical engineering is estimated to reach approximately 15 billion RMB per project, with a total market potential of around 150 billion RMB based on projected approvals for new nuclear units [2]. Financial Projections - Revenue projections for the company are estimated at 1.045 billion RMB in 2024, 1.34 billion RMB in 2025, and 1.761 billion RMB in 2026, reflecting growth rates of 14.0%, 28.3%, and 31.4% respectively [3]. - The net profit attributable to the parent company is expected to be 77 million RMB in 2024, 112 million RMB in 2025, and 154 million RMB in 2026, with significant year-on-year growth rates [3]. - The company's P/E ratios are projected to decrease from 39.1 in 2024 to 19.6 in 2026, indicating improving profitability [3]. Market Context - The report highlights that the nuclear power sector in China is experiencing a revival, with 93 operational, under-construction, and approved units, making it the largest globally [1][2]. - The construction cycle for nuclear projects typically spans 5-8 years, with geotechnical engineering being the first phase, allowing the company to recognize revenue early in the project lifecycle [1].