Company Profile
Jiangsu Ankura Smart Transmission Engineering Technology Co., Ltd. is a China-based company principally engaged in the research and development, manufacture and sales of high pressure and ultra-high voltage cable connectors, as well as gas insulated lines and related products.
The Company's main products include center couplings, outdoor terminals, branch connectors, contraction outdoor terminals, contraction indoor terminals and others.
The Company also provides underground intelligence transmission system total solutions, power engineering survey, design and construction, as well as other services. The Company distributes its products within the domestic market and to overseas markets. （Source: MarketScreener）
Investment Highlights
Jiangsu Ankura Smart Transmission Engineering Technology Co., Ltd. has been working hard in power transmission and transformation equipment for ages.
Jiangsu Ankura Smart Transmission Engineering Technology Co., Ltd. （“Ankura” / the company） has been engaging in the research and development, and manufacture of high pressure and ultra-high voltage cable connectors, as well as gas insulated lines, intelligent electricity substations and other related products.
It has been staying at a leading position in segments including cable accessories and GIL.
It has established a pioneer power transmission and transformation system for future energy system, based on its power transmission and transformation equipment, providing integrated solutions on power intelligent transmission and transformation system to clients.
Benefited from reforms of demand for load, GIL is expected to grow gradually.
Over recent years, with the progress of new infrastructure construction and the rapid development of new energy industry, the appetite of city centers for power loads has been growing, making the capacity expansion of urban grid network more pressing.
GIL boasts advantages of high-capacity power transmission from overhead lines and non-occupation of land from underground high voltage cables, which helps improve its market share.
Meanwhile, GIL, by virtue of its advantages of current capacities, has gradually showed its economy as lines for charging stations to replace cables.
Its transformer substation business will become the company’s new growth driver.
The company has taken the lead in the innovative research and development of integrated machine of switch and transformer, overcoming such difficulties as high current connection, insulating property, and cooling performance.
The operation of intelligent power transformer station will unleash large quantity of precious land resources previously occupied by conventional power transformer stations.
In addition, the intelligent power transformer stations have showed advantages in volume, construction, maintenance and cost controlling.
In 2022, the company won the bid Tencent’s project, and the transformer substation business has stepped into the realization period of growth.
The company has integrated region and technological resources to share the development dividends of demand side.
The company’s “intelligent sponge light storage and charging integration system” helps save power costs and support fast charging at peak periods.
Meanwhile, its PV power generation system could effectively reduce grid load of charging stations at peak periods, which could boost its benefits through its participation in supportive services.
Benefited from the gradual smooth of power price system, the company is expected to share the dividends of integration development mode and regional resources.
Earnings forecast and investment recommendation
It is estimated that the company is to achieve net income attributable to shareholders at CNY 282 million/ CNY 387 million/ CNY 502 million in 2023/ 2024/ 2025, implying a P/E ratio to 23x, 17x and 13x, respectively, based on the closing price on June 30.
We give it a “Buy” rating with the first coverage.
Potential risks
less-than-expected investments into grid; slower-than-expected macroeconomic growth
