SIEYUAN(SZ:002028) Soochow Securities·2024-08-18 02:30Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company's revenue for the first half of 2024 increased by 16% year-on-year, with net profit rising by 27%, aligning with market expectations [3] - The overseas business showed significant growth, with revenue up 40% year-on-year, driven by strong demand in emerging markets [3] - Domestic market conditions remain favorable, with expectations for order growth exceeding 25% for the year [3] Financial Performance Summary - Total revenue (in million) for 2022A was 10,537, 2023A was 12,460, and projections for 2024E, 2025E, and 2026E are 15,128, 18,155, and 21,926 respectively, indicating a year-on-year growth of 21.41% in 2024E [2] - Net profit attributable to the parent company (in million) for 2022A was 1,221, 2023A was 1,559, with projections for 2024E, 2025E, and 2026E at 2,065, 2,586, and 3,053 respectively, showing a year-on-year growth of 32.43% in 2024E [2] - The latest diluted EPS for 2023A is 2.01, with projections of 2.67 for 2024E, 3.34 for 2025E, and 3.94 for 2026E [2] Market and Operational Insights - The company's overseas revenue reached 1.515 billion, up 40% year-on-year, with a gross margin of 33.82% [3] - Domestic revenue was 4.652 billion, a 10% increase year-on-year, with various product lines showing different growth rates [3] - The company has a robust order backlog, with contract liabilities increasing by 30% year-to-date, indicating strong future revenue potential [4] Valuation and Forecast - The company is projected to achieve net profits of 20.7 billion, 25.9 billion, and 30.5 billion for 2024, 2025, and 2026 respectively, with corresponding P/E ratios of 25x, 20x, and 17x [4] - The target price for 2025 is set at 83.5 yuan, based on a 25x P/E ratio [4]