SUPCON Technology (SH:688777) Changjiang Securities·2025-02-11 07:07Investment Rating - The investment rating for the company is "Buy" and is maintained [7]. Core Views - The company announced full integration with the latest series of DeepSeek models on February 10, 2025, which is expected to lead to the launch of a new product called "Industrial BA Super Intelligent System" by mid-2025. This product aims to create multi-scenario AI applications for enterprise operations and is anticipated to drive innovation in new products, businesses, and models [10][11]. - The company is projected to achieve net profits attributable to shareholders of 1.21 billion, 1.44 billion, and 1.78 billion yuan for the years 2024 to 2026, corresponding to price-to-earnings ratios of 36.7x, 30.8x, and 24.9x respectively, indicating a positive outlook [10][11]. Summary by Sections Event Description - On February 10, 2025, the company announced its full integration with the latest DeepSeek models [4]. Event Commentary - The integration with DeepSeek is expected to enhance the company's AI capabilities significantly. The new product has achieved five major breakthroughs in data perception, data integration, application generation, business/data collaboration, and business decision-making. This positions the company to leverage AI technology effectively across various industrial applications [10][11]. - The company is committed to its "ALL IN AI" strategy, aiming to transition from an industrial automation solution provider to a leader in industrial AI. The launch of the TPT model in June 2024 is a key step in this direction, with successful applications already noted in various industries [10][11]. - The company is also exploring opportunities in the robotics sector, having developed various types of robots for specific industrial applications, which are now moving towards commercialization [10][11]. Financial Projections - The company expects total revenue to grow from 8.62 billion yuan in 2023 to 14.29 billion yuan in 2026, with a consistent gross margin of around 33% [13]. - The net profit is projected to increase from 1.12 billion yuan in 2023 to 1.81 billion yuan in 2026, reflecting a strong growth trajectory [13].