SMHC(600131) 长江证券·2024-12-24 00:37Investment Rating - The report maintains a "Buy" rating for the company [18][16]. Core Insights - The report emphasizes that the long-term success factors within the State Grid system hinge on strategic positioning. Currently, the State Grid has elevated digital transformation to a strategic level, entering a phase of business intelligence, with five major professional systems being upgraded and promoted, leading to accelerated digital construction. This is expected to capture incremental demand through core enterprises. The company is positioned as the core enterprise for digitalization within the State Grid, promoting comprehensive digital transformation in line with the background of electricity reform. Additionally, substantial progress in resolving industry competition issues is anticipated to create four growth drivers for the company, facilitating its scale leap. The projected net profits attributable to the parent company for 2024-2026 are expected to be 860 million, 1.373 billion, and 1.603 billion yuan, corresponding to PE ratios of 28.43x, 17.82x, and 15.26x respectively [11][16][10]. Summary by Sections Introduction - The introduction discusses the importance of strategic positioning for long-term success within the State Grid system, highlighting the ongoing digital transformation and its implications for the company's growth [55][14]. Top-Down Analysis - The report outlines that the construction of a new power system is triggering a new round of transformation, necessitating digital transformation in the power sector. The supply side is seeing an increase in renewable energy capacity, while the demand side is experiencing greater load volatility and complexity, necessitating enhanced demand-side management capabilities [14][40][63]. Bottom-Up Analysis - The company is identified as the core enterprise for digitalization within the State Grid, with a focus on comprehensive digital transformation. The report notes that the company has been steadily growing its digital business and is actively expanding into new business scenarios, including virtual power plants and AI products [15][80]. Industry Competition Resolution - The report highlights significant progress in resolving industry competition issues, which is expected to create four growth drivers for the company: increasing scale through acquisitions, concentration of market share, expansion of assets, and exploration of external growth potential [15][111][119]. Investment Recommendations - The report concludes with a positive outlook on the company's growth potential, maintaining a "Buy" rating based on projected profit growth and favorable market conditions for digital transformation in the power sector [16][121].