sundy(300515) EBSCN·2024-09-10 07:40Investment Rating - The report gives a "Buy" rating for the company, marking its first coverage [4]. Core Views - The company is positioned as a leader in coal quality testing instruments in China, with a dual growth strategy focusing on analysis instruments and intelligent equipment [1][16]. - The intelligent equipment segment is expected to become a significant growth driver, with strong market demand and the company being a pioneer in this field [2][35]. - The company has shown resilience in its financial performance, with a projected recovery in net profit due to the resolution of previous challenges [8][23]. Summary by Sections Company Overview - Founded in 1993, the company has established itself as a leader in coal quality testing instruments, serving various industries including power generation and mining [1][16]. - The company’s strategy involves both vertical and horizontal expansion, leveraging its technological expertise to enhance its product offerings [1][18]. Analysis Instruments Business - The domestic market has achieved import substitution, solidifying the company's leading position with a gross margin of 65.96% in 2023 [1][31]. - The revenue from analysis instruments was 2.47 billion yuan in 2023, accounting for 53.26% of total revenue [21][23]. - The company is expected to maintain a steady growth rate of around 10% in this segment from 2024 to 2026 [7]. Intelligent Equipment Business - The intelligent equipment segment is projected to grow significantly, with a market demand trend established and expected revenue growth rates of 120%, 40%, and 30% from 2024 to 2026 [2][7]. - In 2023, the revenue from intelligent equipment was 1.44 billion yuan, with a gross margin of 42.98% [7][25]. - The company has overcome delivery bottlenecks with the new Longxing Park manufacturing base, positioning itself for rapid growth in this segment [2][35]. Financial Forecast and Valuation - The company’s revenue is forecasted to reach 6.68 billion yuan in 2024, with net profits expected to recover to 1.48 billion yuan [10][23]. - The projected earnings per share (EPS) for 2024 is 0.72 yuan, with a price-to-earnings (P/E) ratio of 13x [10][23]. - The company has a strong dividend policy, with an average payout ratio of 47% from 2019 to 2023, indicating a commitment to returning value to shareholders [27][28].