S.C(SZ:300724) Caixin Securities·2024-09-04 03:10Investment Rating - The report assigns a "Buy" rating to the company, indicating a strong potential for investment returns exceeding the market index by over 15% [5][7]. Core Insights - The company reported a significant increase in revenue and net profit for the first half of 2024, with revenue reaching 6.622 billion yuan, a year-on-year growth of 62.19%, and net profit at 1.226 billion yuan, up 63.15% [3][4]. - The company's gross margin improved to 31.62%, an increase of 5.2 percentage points year-on-year, while the net profit margin was 18.53%, up 0.12 percentage points [3][4]. - The company has a robust order backlog, with contract liabilities amounting to 18.452 billion yuan, a 56% increase year-on-year, and inventory at 21.637 billion yuan, up 74% [3][4]. Financial Projections - The company is projected to achieve revenues of 14.325 billion yuan in 2024, 18.708 billion yuan in 2025, and 20.489 billion yuan in 2026, with corresponding net profits of 2.521 billion yuan, 3.368 billion yuan, and 3.873 billion yuan respectively [5][6]. - Earnings per share (EPS) are expected to rise from 7.24 yuan in 2024 to 11.12 yuan in 2026, reflecting strong growth potential [5][6]. - The price-to-earnings (P/E) ratio is projected to decrease significantly from 6.33 in 2024 to 4.12 in 2026, indicating an attractive valuation [5][6]. Market Position and Strategy - The company is positioned as a leader in the photovoltaic equipment sector, benefiting from the expansion of TOPCon production capacity and the replacement of older production lines [3][4]. - The company is actively pursuing a platform-based strategy to enhance its resilience against market fluctuations, focusing on advancements in TOPCon, HJT, and perovskite technologies [4][5]. - The company has successfully developed and delivered new semiconductor and lithium battery equipment, indicating diversification and growth in related sectors [5].