The company adheres to its own hard and soft strength and becomes a leader in the intelligent smart industry

Established in 1985, Yuandong Holding Group is one of the top 500 Chinese enterprises and the top 500 private enterprises. With smart cable networks, smart batteries, and smart airports as its main business, it is committed to green innovation and global leadership. The company's core values include customer as the core, innovation and excellence, harmony and win-win situation. Through technological innovation and market expansion, it has achieved remarkable achievements in the field of smart batteries and smart airport construction. After many reforms, the Far East has shown great adaptability and leadership in China's economic development, and has become a model for the revival of the private economy. The company's sales continued to grow, achieving revenue of 18.222 billion yuan in the first three quarters of 2024, an increase of 4.78% year-on-year, and a record high for the same period. In '23 and the first three quarters of '24, revenue hit two new highs during the same period, and the Far East is developing strongly in the future.

Driven by the vision of carbon neutrality, the smart smart industry is supported globally

1) Policy support and guidance, energy transformation promotion, and the smart cable industry is welcoming the spring breeze. The rapid growth of the wire and cable industry in China not only supports the development of the national economy, but also occupies an important position in the global market. In particular, the smart cable industry has shown strong development potential. 2) Keeping up with the green economy and carbon peak goals, risks and opportunities coexist in the smart battery industry. According to the Yiou think tank, the global energy storage market size and cumulative installed capacity continue to grow. It is expected to reach 348 GWh and 237 GW in 2025. China has outstanding performance in the energy storage battery and lithium battery copper foil market, and the market prospects are broad. 3) Infrastructure is an important support for building a strong civil aviation country, and smart airports promote the transformation of civil aviation to high-quality development.

Adhere to the “one, two wings” development pattern and increase R&D investment in the three major industries go hand in hand

1) The company is an industry leader in all industries, and talent advantages protect the company. The brand is famous all over the world and has a huge customer base. Yuandong is the preferred brand for major customers such as the world's top 500 and China's top 500. It has participated in more than 1,000 major national engineering projects, and is the preferred brand for major customers such as the world's top 500 and China's top 500.

2) The company closely follows the national development strategy and actively lays out the three major businesses. The company closely follows the national development strategy, insists on endogenous growth, and actively lays out the three major businesses of smart cable networks, smart batteries, and smart airports. It has high social and economic value, large room for growth, and occupies a pioneering and leading advantage in the industry.

3) Smart cable networks serve important engineering projects in various fields and maintain a leading position in the industry. It serves leading technology in many fields and promotes the steady development of the company: with its high-end technology and talent support, its high-end cable products have become leaders in import substitution, filling many domestic technical gaps.

4) Seize “new energy” opportunities and accelerate the development of lithium battery energy storage business.

5) According to the company's investor relations exchange records, the company established contacts with the world's leading artificial intelligence chip companies, obtained supplier qualifications, and formed small-scale delivery.

Investment advice: We forecast the company's 24-26 revenue of 26.906/32.99/39.827 billion yuan, 24-26 net profit of 0.073/0.826/1.042 billion yuan, EPS of 0.03/0.37/0.47 yuan, corresponding to the closing price of 4.83 yuan/share on November 27, 2024, PE is 147.13/12.98/10.29 times, respectively. We are optimistic about the company's main business repair+new AI business layout. The first coverage gives a “buy” rating.

Risk warning: Market competition intensifies; product development falls short of expectations.