The company started with heat-shrinkable materials and diversified its business. at present, it has four major business sectors: electronics, power, wires and new energy. new energy lithium protection silicone rubber products, automotive industry lines, electric car charging guns and other new energy related products are expected to become important growth poles for the company's performance growth in the future. For the first time, give a "highly recommended" investment rating.
In the field of electronics, the products are mainly heat-shrinkable materials. At the beginning of its establishment, the company focused on heat-shrinkable materials, has more than 20 years of production and sales experience, has a high market share in the domestic middle and low-end market, and has made breakthroughs in automotive electronics, rail transit, aviation, nuclear power and intelligent fields. some products have been imported and replaced. It is expected that in the future clean energy construction such as nuclear power and high-end demand for rail transit will bring new growth points for the heat-shrinkable materials industry.
In the electric power field, the main products include cable accessories, line fittings, epoxy insulation products, insulation protection products, etc. The ceramic silicone rubber products produced by the subsidiary Shanghai Cote are widely used in fire-resistant wires and cables, fire-resistant communication optical cables, fire-resistant bus slots, power battery safety protection, aerospace and other fields, among which new energy lithium battery protection products are mainly used in the field of thermal protection of power batteries. Has successfully entered the supply chain of mainstream power battery manufacturers.
The electric wire field, mainly with the holding subsidiary "Leting Electric Wire Industry" as the main body, has gradually transformed from the field of electronic consumption to the application fields of high-speed communications, automobile transmission and industrial automation, and has achieved remarkable results. the main products include high-speed communication lines, automotive industrial lines, industrial robot lines and so on.
In the field of new energy, Wall New Energy, a holding subsidiary, mainly produces electric vehicle charging guns, in-car high-voltage wire harnesses and high-voltage connectors. at present, the company's DC charging gun products have a high recognition and share in the domestic market and have a competitive advantage in the market. we expect the domestic charging gun market to reach about 3.9 billion yuan in 2025, with an annualized compound growth rate of 77%, which is expected to become an important growth pole of the company's performance.
Coverage for the first time, giving a "highly recommended" investment rating. It is estimated that the return net profit of the company from 2022 to 2024 is 780,920 million yuan respectively, corresponding to the PE of 14-11-10, which is covered for the first time and given a "highly recommended" investment rating.
Risk tips: macroeconomic environment and policy risks, industry competition risks, raw material price fluctuation risks, company operating risks, lower-than-expected demand for new energy or changes in technological routes, etc.