Guosen Securities: Maintains "outperform the market" rating for Tebian Electric Apparatus, multiple businesses achieve steady growth.

Guosen Securities research report pointed out that Tebian Electric Co., Ltd.'s attributable net profit in 2024 was 4.13 billion yuan, a year-on-year decrease of 61%, mainly due to significant losses in the polysilicon business in 2024; the performance in the first quarter of 2025 was 1.6 billion yuan, a year-on-year decrease of 20%. Multiple businesses achieved steady growth, and the overseas market for power transmission and transformation business continued to break through. Benefiting from the construction of new power systems and increased investment in distribution networks, the domestic power transmission market is further opening up. In addition, the company is vigorously promoting international product certification work, and the overseas market continues to achieve breakthroughs in contracts. In 2024, the export contracts reached 1.2 billion US dollars, a year-on-year increase of more than 70%. By the end of 2024, the company had a cumulative installed capacity of 5.0GW for thermal power, accounting for 58% of the total installed capacity. It is expected that coal production will steadily increase, the polysilicon business will gradually reduce losses, and the prosperity of electric grid investment will continue. Therefore, the profit forecast for 2025 has been adjusted to 6.2 billion yuan, with a corresponding PE ratio of 9.6/7.6/6.3 times the current stock price, maintaining a "outperform the market" rating.