CCA(603100) 诚通证券·2025-01-15 11:10Investment Rating - The report upgrades the investment rating of Chuanyi Co Ltd to "Strongly Recommend" due to its low valuation, high certainty, and strong domestic substitution logic [5][7] Core Viewpoints - Chuanyi Co Ltd is expected to transition from a local state-owned enterprise to a central state-owned enterprise under the China National Machinery Industry Corporation (Sinomach) system, which is seen as a positive development [1] - The company is anticipated to benefit from Sinomach's resources and expertise, particularly in expanding its customer base and enhancing its R&D capabilities [2][3] - Sinomach's involvement is expected to improve the professionalism of Chuanyi's shareholder decision-making and streamline its business decision-making processes [4] Financial Projections - Revenue is projected to grow from RMB 8.039 billion in 2024 to RMB 9.979 billion in 2026, with year-on-year growth rates of 8.48%, 10.58%, and 12.26% respectively [5][10] - Net profit is forecasted to increase from RMB 803 million in 2024 to RMB 1.052 billion in 2026, with year-on-year growth rates of 7.96%, 14.39%, and 14.54% respectively [5][10] - The company's PE ratio is expected to decrease from 14.2X in 2024 to 10.8X in 2026, indicating a potential undervaluation [5][10] Market Data - As of January 14, 2025, Chuanyi Co Ltd's closing price was RMB 22.11, with a total market capitalization of RMB 11.352 billion [7] - The stock's one-year low and high prices were RMB 15.61 and RMB 31.49 respectively, with a three-month turnover rate of 111.35% [7] Industry Context - Chuanyi Co Ltd operates in the machinery and general equipment industry, with its downstream customers primarily in sectors critical to the national economy, such as petroleum, petrochemicals, steel, metallurgy, power, and environmental protection [2] - The company is positioned to benefit from the domestic substitution trend in the intelligent instrumentation sector, which is a key driver of its growth prospects [5]