Sinexcel Electric(SZ:300693) ZHONGTAI SECURITIES·2024-09-05 08:03Investment Rating - The report assigns a rating of "Buy" for the company, indicating a positive outlook for future performance [1]. Core Insights - The company is projected to experience significant revenue growth, with estimates of 2,651 million in 2023, increasing to 6,004 million by 2026, representing a compound annual growth rate (CAGR) of approximately 34% [1]. - The earnings per share (EPS) is expected to rise from 1.29 in 2023 to 2.71 by 2026, reflecting a strong upward trend in profitability [3]. - The report highlights a robust year-over-year (YoY) growth rate of 76% in 2023, which is expected to stabilize at around 24% by 2026 [1][3]. Financial Summary - Revenue projections for the upcoming years are as follows: 2,651 million in 2023, 3,596 million in 2024, 4,833 million in 2025, and 6,004 million in 2026, with respective YoY growth rates of 76%, 36%, 34%, and 24% [1]. - The company's net income is forecasted to grow from 403 million in 2023 to 843 million in 2026, with a notable increase in net profit margin from 28% in 2023 to 28% in 2026 [1][3]. - The price-to-earnings (P/E) ratio is projected to decrease from 15.5 in 2024 to 7.4 by 2026, indicating an attractive valuation as earnings grow [3]. Valuation Metrics - The price-to-book (P/B) ratio is expected to decline from 4.3 in 2024 to 2.1 in 2026, suggesting that the stock may become increasingly undervalued relative to its book value [3]. - The report anticipates a return on equity (ROE) of 28.1% in 2024, slightly decreasing to 27.6% by 2026, which still indicates strong profitability relative to shareholder equity [3].