SUMEC(SH:600710) Tai Ping Yang·2024-06-19 08:02Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for its development, particularly with a projected net profit compound annual growth rate (CAGR) of 23.5% over three years [1]. Core Insights - The company achieved total revenue of 1229.8 billion, a decrease of 12.87% year-on-year, while the net profit attributable to shareholders was 10.3 billion, an increase of 12.4% year-on-year [4]. - The earnings per share (EPS) for 2023 was 0.79 yuan, with a weighted average return on equity (ROE) of 15.75%. The company plans to distribute a cash dividend of 0.33 yuan per share, resulting in a dividend yield of 3.75% based on the closing price on April 12 [4]. - For Q1 2024, the company reported total revenue of 237.45 billion, a decrease of 23.4% year-on-year, while the net profit attributable to shareholders was 2.66 billion, an increase of 5.2% year-on-year [4]. Financial Summary - The company’s main business includes two categories: supply chain integration services and various products or services within the industrial chain [4]. - The projected financials for the upcoming years are as follows: - Total revenue is expected to decline to 1154.23 billion in 2024, 1136.52 billion in 2025, and slightly increase to 1151.07 billion in 2026, reflecting year-on-year changes of -6.1%, -1.5%, and 1.3% respectively [4]. - Net profit is projected to grow to 11.12 billion in 2024, 12.18 billion in 2025, and 13.35 billion in 2026, with year-on-year growth rates of 8.0%, 9.5%, and 9.6% respectively [4]. - The diluted EPS is expected to rise to 0.85 yuan in 2024, 0.93 yuan in 2025, and 1.02 yuan in 2026 [4]. - The price-to-earnings (PE) ratio is projected to decrease from 10.41 in 2023 to 8.03 in 2026 [4].