SUPCON Technology (688777) Guoxin Securities·2024-10-24 08:08Investment Rating - The investment rating for the company is "Outperform the Market" [3][9] Core Views - The company's revenue growth has slowed in Q3, but profit excluding foreign exchange losses remains high. For the first three quarters of 2024, revenue reached 6.337 billion yuan (+11.58%), with net profit attributable to shareholders at 717 million yuan (+3.36%) and non-recurring net profit at 655 million yuan (+15.09%). In Q3 alone, revenue was 2.085 billion yuan (+2.30%), net profit was 200 million yuan (+9.52%), and non-recurring net profit was 183 million yuan (+25.81%) [1][5] - The company has effectively controlled costs, with a slight decrease in contract liabilities. The gross margin for the first three quarters was 32.85%, showing a slight increase year-on-year. Sales and management expenses decreased by 1.11% and 11.15% respectively, while R&D expenses increased by 7.56%, all below the revenue growth rate [1][5] - Continued policy support in industrial software and equipment upgrades is expected to drive new growth. A recent notice from the Ministry of Industry and Information Technology outlines goals for updating industrial software and systems, which will benefit the company [1][5] - The company has made significant breakthroughs in overseas markets, securing a major contract with Saudi Aramco for industrial information security, indicating strong growth potential in international markets [1][5] Financial Forecasts - Revenue forecasts for 2024-2026 are adjusted to 9.801 billion yuan, 11.458 billion yuan, and 13.524 billion yuan, with growth rates of 14%, 17%, and 18% respectively. Net profit forecasts are revised to 1.199 billion yuan, 1.436 billion yuan, and 1.740 billion yuan, with corresponding PE ratios of 32, 27, and 22 times [2][9]