Last year, electromagnetic wire contributed over 40% of the profit. Jinbei Electric: The third phase of flat electromagnetic wire is expected to add a capacity of 6,000 mt in Q2.

The sales of electromagnetic wires exceeded 80,000 mt, with the profit contribution of this business surpassing 40%. Jinbei Electric (002533.SZ) achieved both revenue and net profit growth in 2024.

Tonight, Jinbei Electric released its 2024 annual report, reporting revenue of 17.669 billion yuan, up 15.54% YoY, and net profit attributable to the parent company of 569 million yuan, up 8.78% YoY. The company stated that the robust demand for flat electromagnetic wires used in UHV transformers and new energy motors both domestically and overseas drove the rapid growth of its electromagnetic wire business. To enhance delivery capabilities, the company has been gradually releasing new capacity both domestically and internationally this year.

Jinbei Electric now has two "flat electromagnetic wire production sites" in Xiangtan and Wuxi, as well as six "cable production sites" in Changsha, Hengyang, Chengdu, Wuhan, Nanchang, and Changzhou. The financial report shows that the company's top two product series are wire and cable products and electromagnetic wires.

Last year, the revenue from electromagnetic wires accounted for nearly 40% of the company's total revenue, with the profit share exceeding 40%. This was mainly driven by accelerated power grid investments and the rapid development of the NEV industry. The company's electromagnetic wire shipments reached approximately 85,000 mt, up about 20% YoY, with revenue exceeding 6.6 billion yuan, up about 31% YoY. A company representative stated that the shipments of flat wires for NEVs increased by 60% YoY in 2024.

To further enhance its fulfillment and delivery capabilities, Jinbei Electric has undertaken multiple capacity expansion projects domestically. The Wuxi site added 10,000 mt of flat wire capacity for transformers, which was put into operation in Q2 2024. The company revealed that the third-phase expansion project for flat electromagnetic wires dedicated to NEV motors is progressing smoothly, with the main structure largely completed. The first batch of 6,000 mt capacity is expected to be gradually released in Q2 this year.

Additionally, the intelligent equipment cable project of Jinbei Cable, the company's cable industry center, for the R&D and production of industrial equipment cables and environmental protection wires, has completed its main construction and is expected to commence production in June this year, with a planned output value of approximately 1 billion yuan.

Public data shows that this year, the total investment in power grids by State Grid and China Southern Power Grid will exceed 825 billion yuan, a significant increase of 220 billion yuan compared to 2024, up 36% YoY. Industry insiders believe that with the imminent completion of large wind and solar power bases, the demand for power grid construction is expected to remain high. In developed regions such as Europe and the US, where electrification began earlier, there is a substantial need for upgrades and replacements.

To seize opportunities from the European power grid upgrades and the NEV-driven demand for electromagnetic wires, as well as to provide localized services to existing European customers, Jinbei Electric is accelerating its global capacity layout. Recently, the company plans to invest approximately 700 million yuan to build a production site in the Czech Republic, with a planned electromagnetic wire capacity of 20,000 mt, to be constructed in two phases. The first phase of 8,000 mt is expected to commence production by the end of 2025 or early 2026.

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