xinje(SH:603416) Haitong Securities·2024-06-18 00:01Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [2][5]. Core Insights - The company is advancing its PLC and servo business, with a focus on product line extension and industry expansion. It has established a leading position among domestic manufacturers and is leveraging its advantages in small PLCs to expand into medium PLCs and other sectors such as 3C, photovoltaics, and semiconductors [4]. - The company's servo performance continues to improve, with rapid growth in frequency conversion products. The DS5C2 and DS5L2 series are noted for their precision and stability, applicable in various downstream industries [4]. - A recent private placement plan involves issuing 21.28 million shares at a price of 23.49 yuan per share, raising up to 500 million yuan for projects including the second phase of the technology center and marketing network expansion [4][5]. Financial Summary - The company’s projected revenue for 2024 is 1.827 billion yuan, with a year-on-year growth of 21.4%. Net profit is expected to be 236 million yuan, reflecting an 18.6% increase [7][10]. - The earnings per share (EPS) forecast for 2024 is 1.68 yuan, with a projected price-to-earnings (P/E) ratio of 25-30x, indicating a reasonable value range of 42-50.4 yuan [5][10]. - The company’s gross margin is expected to stabilize around 36% for the coming years, with a slight decrease projected in 2025 [10].