SCIYON(SZ:002380) CMS·2024-08-10 05:45Investment Rating - The report maintains a "Strong Buy" investment rating for the company [2][3][4]. Core Insights - The company has demonstrated continuous high growth in its performance, with a significant increase in revenue and net profit driven by the domestic demand for DCS (Distributed Control System) in thermal power generation [2][3]. - The company is positioned to benefit from the current construction cycle in the thermal power sector, as it is a leading player in the domestic DCS market [2][3]. - The industrial artificial intelligence business is gradually gaining traction, and the company is expanding its overseas operations, which are expected to contribute to further growth in the second half of the year [2][3]. Financial Performance - For the first half of 2024, the company achieved revenue of 805 million yuan, a year-on-year increase of 16.24%, and a net profit of 110 million yuan, up 153.55% year-on-year [2][3]. - The gross margin for the reporting period was 40.13%, an increase of 4.15 percentage points compared to the same period last year [3]. - The company expects revenues of 1.901 billion yuan, 2.532 billion yuan, and 3.180 billion yuan for 2024, 2025, and 2026 respectively, with corresponding net profits of 251 million yuan, 308 million yuan, and 362 million yuan [3][5]. Market Position - The company has a leading market share in the domestic DCS for large thermal power units, with significant contracts secured in the second quarter of 2024 [2][3]. - The company is recognized for its NT6000 V5 intelligent control system, which was the first domestically certified DCS system in China [2][3]. Valuation Metrics - The report projects a PE ratio of 15.3 for 2024, decreasing to 10.6 by 2026, indicating an attractive valuation as earnings grow [5]. - The PB ratio is expected to decline from 2.0 in 2023 to 1.4 in 2026, reflecting improved financial health and shareholder value [5].