SUPCON Technology (SH:688777) China Post Securities·2024-08-23 04:30Investment Rating - The investment rating for the company is "Buy" and is maintained [1] Core Views - The company has achieved a significant year-on-year growth in net profit, with a 49.80% increase when excluding GDR exchange losses [5] - The company’s total revenue for the first half of 2024 reached 4.252 billion yuan, reflecting a year-on-year growth of 16.78% [5] - The company has successfully signed new overseas contracts worth 500 million yuan, marking a 63.82% increase compared to the previous year [6] - The company has launched new products, including the Universal Control System (UCS) and the AI Time-Series Pre-trained Transformer (TPT), which are expected to revolutionize industrial applications [7][8] - The company has initiated a new stock incentive plan aimed at enhancing performance in key teams [8] - The company is positioned as a leader in the automation and digitalization of process industries, with projected EPS for 2024-2026 being 1.70, 2.12, and 2.67 yuan respectively [8] Financial Summary - The company’s total revenue is projected to grow from 8.620 billion yuan in 2023 to 17.261 billion yuan in 2026, with a compound annual growth rate (CAGR) of approximately 27.07% [9] - The net profit attributable to the parent company is expected to increase from 1.102 billion yuan in 2023 to 2.113 billion yuan in 2026, with a CAGR of 26.10% [9] - The company’s PE ratio is projected to decrease from 26.44 in 2023 to 13.79 in 2026, indicating an improving valuation over time [9][10]