Key takeaway

The company mainly produces special vehicles such as aerial work vehicles, electric power emergency support vehicles, military products, and fire trucks. In 2026, the company acquired 51% equity of Hubei Jiandun for RMB739.5mn, entering the energy storage firefighting segment and forming a dual-engine model of "special vehicles + firefighting". Jiandun is the only company in the world that simultaneously obtained certifications in four regions: North America UL 2775, Europe EN 15276, Australia AS 4487, and China CCCF. With the rapid expansion of the energy storage industry, the company maintains high growth in revenue and profit, supporting its second growth curve. The traditional special vehicle business delivers stable growth and provides a safety cushion, while the energy storage firefighting business benefits from industry expansion and certification barriers to achieve high growth. Under this dual-engine model, the company’s growth prospects are clear.

Thesis

The company is the first listed company in China’s aerial work vehicle industry. Its main products include aerial work vehicles, electric power emergency support vehicles, military products, and fire trucks. In 2026, the company acquired 51% equity of Hubei Jiandun for RMB739.5mn, entering the firefighting materials field and extending from equipment to materials.

The firefighting business of Jiandun is the core driver of the company’s performance growth: Benefiting from the surge in energy storage demand, the global energy storage firefighting market size is expected to reach RMB5.1bn/RMB7.8bn in 2026–2027, YoY+84%/+53%. We believe the company’s core barriers include: ①Jiandun is the only company in the world that simultaneously obtained certifications in four regions: North America UL 2775, Europe EN 15276, Australia AS 4487, and China CCCF. It holds a high market share in energy storage products exported from China. The company fully benefits from the certification barriers and the resulting high growth. Revenue in 2025 was about RMB600mn, and it is expected to maintain roughly doubled growth in 2026 and 2027. ②The company’s energy storage firefighting technology and product performance are leading and recognized by top -tier customers. The company holds nearly 1,000 patents and masters core technologies such as pulsed aerosol. Its customers include CATL, SUNGROW POWER SUPPLY, and EVE. The company’s energy storage firefighting products cover all scenarios, including commercial and industrial energy storage, residential energy storage, and prefabricated cabin power stations. ③The company actively expands downstream application fields and is expected to enter new markets such as power transmission, power distribution, and substation systems in the future. Fire protection products for data centers will also become indispensable going forward. We expect the company’s energy storage fire protection business to become the second growth driver and continuously contribute incremental performance.

The company’s core special-purpose vehicle business remains solid. We expect steady growth to provide a safety cushion. ①The company has a comprehensive aerial work vehicle product matrix and holds a leading market position in intelligent products, ultra-high reach products, and insulated boom series. Demand in China’s aerial work vehicle industry continues to grow steadily. The industry has high entry barriers, and the company’s industry position remains solid. In 2025, the company’s aerial work vehicle revenue reached RMB689mn, up 80% YoY, with a gross margin of 34.8%, up 1.7pcts YoY. ②The company continues to expand its mobile power supply vehicle product matrix, which is suitable for multiple application scenarios. In the field of power emergency support vehicles, the company’s emergency power generation vehicles, bypass liveline operation vehicles, fire trucks, firefighting robots, and decontamination vehicles have been widely used in power support for major events and emergency rescue operations. In the energy storage field, the company’s mobile energy storage vehicles and UPS power vehicles have also achieved mass production and sales. ③The subsidiary Grumman is one of the companies with the most comprehensive categories of fire trucks, with products covering four major categories: tank type, special type, elevating type, and firefighting robots. In 2025 , the company’s fire rescue vehicle business saw a significant rebound in both volume and profitability, achieving revenue of RMB439mn, up 50.3% YoY, with a gross margin of 20.7%, up 6.5pcts YoY.

Earnings forecast: Traditional special-purpose vehicle business delivers steady growth and provides a safety cushion, while the energy storage fire protection business benefits from industry expansion and certification barriers to achieve high growth. Under the dual-engine drive, the company’s growth outlook is clear. We estimate the company’s net profit attributable to shareholders of the parent company will reach RMB500mn/RMB800mn/RMB1,080mn in 2026–2028, corresponding to PE of 29.8x/18.7x/13.8x. We assign a “Buy” rating. Considering the company’s high overseas market share and the gradual implementation of largescale energy storage aerosol applications in China, we expect a reasonable 2027 PE of 25x, with a target price of RMB19.80.

Risks

1) Risk of changes in energy storage fire protection industry standards: The energy storage fire protection sector relies heavily on standards in different countries. If standards change, it may affect the progress and delivery pace of the company’s energy storage fire protection business.

2) Downstream demand below expectations: If energy storage installations or NEV sales fall short of expectations, shipments and growth of the company’s new businesses such as energy storage fire protection may be affected. Every 10GWh change in energy storage orders may affect the Jiandun subsidiary’s net profit by about RMB38mn/RMB41mn in 2026/2027, corresponding to net profit attributable to shareholders of the parent company of about RMB19mn/RMB21mn.

3) Demand fluctuation risk for special-purpose vehicles: Special-purpose vehicles (aerial work platforms, fire rescue vehicles, power emergency support vehicles, etc.) are sensitive to macro investment and industry cycles. If the pace of infrastructure and grid investment slows or the procurement cycle for municipal emergency equipment is delayed, the growth of the company’s core business may face pressure.

4) Grid investment and policy volatility risk: If grid investment, emergency equipment procurement, and related policy implementation fall short of expectations, the growth pace of the company’s core and new businesses may be affected.