SED(SZ:000032) Tianfeng Securities·2024-11-12 23:59Investment Rating - The report maintains a "Buy" rating for the company, with a target price indicating an expected return of over 20% within six months [6][14]. Core Insights - The company has demonstrated strong revenue growth, with a projected increase in operating income from 51,051.92 million yuan in 2022 to 81,063.73 million yuan by 2026, reflecting a compound annual growth rate (CAGR) of approximately 13.50% [8][10]. - The net profit attributable to the parent company is expected to recover from a loss of 162.25 million yuan in 2022 to a profit of 680.36 million yuan by 2026, indicating a significant turnaround [8][10]. - The company is actively pursuing product innovation and digital transformation, particularly in the fields of cloud computing, data innovation, and artificial intelligence, which has led to a substantial increase in revenue from digital and information services, growing by 72.72% year-on-year [3][4]. Financial Performance Summary - For the first three quarters of 2024, the company reported revenue of 48,422 million yuan, a year-on-year increase of 25.21%, while the net profit attributable to the parent company was a loss of 12.7 million yuan, but this still represented a 53.07% improvement compared to the previous year [2]. - The gross margin for Q3 2024 was 8.23%, showing a decline of 2.82 percentage points year-on-year [2]. - The company has successfully reduced its overall expense ratios, with sales, management, and R&D expense ratios decreasing by 0.27, 0.50, and 0.05 percentage points respectively [2]. Revenue Breakdown - The high-tech industry engineering services segment saw a revenue increase of 25.27%, reinforcing the company's position in strategic emerging industries [3]. - The digital and information services segment's revenue growth of 72.72% is attributed to the expansion of self-developed product systems and market penetration in various digital service areas [3]. Future Projections - The company is expected to achieve net profits of 419 million yuan, 530 million yuan, and 680 million yuan for the years 2024, 2025, and 2026 respectively, with corresponding price-to-earnings (P/E) ratios of 60, 47, and 37 [4][10].