New energy steel structural parts suppliers, high-quality enterprises with new energy going overseas:

Zhenjiang Co., Ltd. was established in March 2004 and listed in 2017. The main business includes wind power equipment, photovoltaic/photothermal equipment components. The company's core products in the field of wind power include engine cabin covers, rotor rooms, stator segments, towers, etc., while in the photovoltaic field, the company provides fixed/adjustable photovoltaic brackets, tracking photovoltaic brackets, etc. The company focuses on overseas market layout. It is a supplier to overseas new energy companies such as Siemens Group, General Electric, Kongsberg, Enercon, and GCS. In recent years, foreign market revenue has continued to be higher than that of the domestic market.

The wind power business binds overseas core customers and benefits from the growth of Haifeng's installed capacity:

The installed capacity of global wind power continues to grow. In particular, the offshore wind power market has broad prospects, and the trend of larger fans is obvious. As a qualified supplier of Siemens wind power components, Zhenjiang Co., Ltd. provides wind power products including rotor chambers, stator sections, engine cabin covers, towers, etc. The company has core technology in parallel welding control, machining accuracy control, and surface treatment quality control.

The company invests in the offshore wind power installation ship “Zhenjiang” to provide offshore wind turbine installation, operation and maintenance services.

The photovoltaic business actively lays out overseas production capacity and seizes overseas market opportunities:

Global PV installations continue to grow, emerging markets are growing faster, and the share of tracking brackets is increasing. Zhenjiang Co., Ltd. produces fixed/adjustable PV mounts and tracking PV mounts, and cooperates with American PV tracker manufacturer ATI. The company has established factories in the US and Saudi Arabia to actively expand overseas markets, benefiting from the growth of PV installations in overseas markets.

Investment advice:

We expect the company's revenue from 2024 to 2026 to be 4.764/6.236/7.972 billion yuan, respectively, with growth rates of 24.0%/30.9%/27.8%, respectively. Net profit was 0.279/0.374/0.532 billion yuan respectively, with growth rates of 51.9%/34.0%/42.3%, respectively. We chose the wind power component-related companies Daikin Heavy Industries, Jinlei Co., Ltd. and the photovoltaic stent-related companies CITIC Bo, Yihua Co., Ltd., and Qingyuan Co., Ltd. as comparable companies. Referring to comparable companies in the industry, the PE of comparable companies in 2024 was 17 times, the company was given 17 times PE in 2024, the target price for 6 months was 25.67 yuan, and the investment rating of buy-A was given.

Risk warning: Offshore wind power installations fall short of expectations; demand for PV installations in overseas markets falls short of expectations; geopolitical risks; risk of large fluctuations in raw material prices; risk of significant impairment of goodwill; risk of forecasting assumptions falling short of expectations.