SIFANG(601126) 东方财富·2024-10-10 08:23Investment Rating - The report gives the company a "Buy" rating for the first time [2] Core Views - The company is a leading private enterprise in the relay protection products sector, with steady growth in both grid and non-grid businesses [1] - The company has a strong position in the grid business, with stable market share and contributions to steady performance, while the non-grid business, especially in the new energy sector, brings significant incremental growth [2] - The company is expected to achieve revenues of 6.94/8.22/9.38 billion yuan in 2024-2026, with growth rates of 20.65%/18.50%/14.03%, and net profits of 726/857/1006 million yuan, with EPS of 0.87/1.03/1.21 yuan [2][6] Business Segments Grid Automation - The company maintains a leading position in main grid relay protection products and is closely following grid demands to develop new secondary products [7] - The grid automation business is expected to achieve revenues of 3.36/3.80/4.07 billion yuan in 2024-2026, with gross margins of 42%/41.5%/41.5% [7] Power Plant and Industrial Automation - The company has stable performance in traditional power generation markets and is seeing growth in new energy sectors, particularly in distributed photovoltaic products and reactive power compensation equipment [8] - The power plant and industrial automation business is expected to achieve revenues of 3.05/3.66/4.32 billion yuan in 2024-2026, with gross margins of 26.5%/26%/26% [8] Other Businesses - The company is expanding in areas such as grid-forming energy storage and industrial and commercial integrated cabinets, leveraging its power electronics technology [9] - The other businesses are expected to achieve revenues of 524/760/989 million yuan in 2024-2026, with gross margins maintained at the level of the first half of 2024 [9] Financial Performance - The company achieved revenues of 5.75 billion yuan in 2023, with a growth rate of 13.24%, and net profits of 627 million yuan, with a growth rate of 15.46% [3] - The company's EBITDA in 2023 was 785 million yuan, with a growth rate of 15.78%, and EPS was 0.75 yuan [3] - The company's P/E ratio in 2023 was 18.88, and the P/B ratio was 2.79 [3] Market Position - The company is a leading private enterprise in the relay protection products sector, with a stable market share in the grid business and significant growth in the new energy sector [1][2] - The company has a strong position in the grid automation business, with a market share of 15.6% in 2023 and 14.2% in the first four batches of centralized bidding in 2024 [45] Innovation and Growth Drivers - The company is innovating in grid automation, power plant and industrial automation, and other businesses, particularly in grid-forming energy storage and industrial and commercial integrated cabinets [9][10] - The company's growth is driven by the increasing demand for new energy equipment, reactive power compensation devices, and grid automation products [10][11]