SCIYON(002380) 华龙证券·2024-10-21 12:30Investment Rating - The report assigns an "Accumulate" rating for the company, marking its first coverage [1]. Core Views - The company has shown significant growth in performance, with a total revenue of 1.162 billion yuan in Q3 2024, representing a year-on-year increase of 16.16%. The net profit attributable to shareholders reached 159 million yuan, up 75.34% year-on-year, with basic EPS of 0.66 yuan, also reflecting a 75.35% increase [1]. - The company's profitability and cost control capabilities are steadily improving, with a gross profit margin of 40.82%, the highest in recent years. The company benefits from industry prosperity and its leading position in the sector [1]. - The company is positioned as a leader in domestic thermal power DCS and is expected to benefit from the domestic substitution process, with a significant market share in large control systems [1]. Financial Performance Summary - For the first three quarters of 2024, the company achieved total revenue of 1.162 billion yuan, a 16.16% increase year-on-year, and a net profit of 159 million yuan, a 75.34% increase year-on-year. The sales expense ratio, management expense ratio, and financial expense ratio have decreased by 2.11%, 0.77%, and 0.04% respectively, while R&D expenses increased by 0.78%, indicating good overall cost control [1]. - The company's contract assets grew by 94.55% compared to the beginning of the year, suggesting a strong pipeline for future revenue [1]. - The company forecasts net profits of 248 million yuan, 326 million yuan, and 408 million yuan for 2024, 2025, and 2026 respectively, with corresponding PE ratios of 19.1, 14.6, and 11.6 [4][5]. Market Position and Industry Outlook - The domestic automation sector is witnessing a rise of domestic enterprises, particularly in process automation, driven by the energy and petrochemical sectors. The company’s self-controlled DCS products are expected to gain further market space due to the domestic substitution trend [1]. - The company is projected to maintain stable growth in revenue contributions from industrial automation and industrial internet products, with an expected increase in sales gross margin from 2024 to 2026 [1].