Changgao NEET(002452) 中邮证券·2025-03-04 05:16Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [1]. Core Insights - The company has eliminated goodwill impairment risks and is focusing on its core business, enhancing its GIS high-voltage products and diversifying its distribution network equipment [4][6]. - The company is expected to benefit from the increasing investment in the power grid, driven by the growth of renewable energy generation and the impact of artificial intelligence on load dynamics [5][42]. - The company has a robust order pipeline, with significant contracts secured from the State Grid, indicating strong future revenue growth [6][41]. Summary by Sections Company Overview - The company, founded in 1965, specializes in manufacturing power transmission and transformation equipment and providing electrical design and engineering services. It went public in 2010 and has since expanded its product offerings, including GIS and GIL technologies [4][15]. Financial Performance - The company forecasts revenues of 1.75 billion, 2.10 billion, and 2.52 billion yuan for 2024, 2025, and 2026, respectively, with net profits projected at 260 million, 340 million, and 430 million yuan, reflecting a CAGR of 28.9% [7][55]. - The company’s asset-liability ratio stands at 30.2%, indicating a low financial risk profile [3][29]. Market Trends - The global penetration of renewable energy generation is expected to exceed 15% in 2024, with significant growth in countries like China and the U.S. This trend is anticipated to drive further investment in power grid infrastructure [5][42]. - The State Grid plans to invest over 650 billion yuan in 2025, indicating a strong growth trajectory for the power grid sector [48]. Product Development and Orders - The company has secured 7.4 billion yuan in GIS contracts from the State Grid in 2023, a 37.1% increase year-on-year, showcasing its competitive position in the market [6][35]. - The company is actively expanding its product range and enhancing its manufacturing capabilities, including the establishment of new production facilities for GIL equipment [39][40].