SUMEC(600710) 浙商证券·2025-03-09 02:23Investment Rating - The investment rating for the company is upgraded to "Buy" [5][7] Core Views - The company is benefiting from high demand in the diesel generator business driven by AI computing infrastructure, while also expanding into the outdoor power equipment sector with smart lawn mowers, creating a second growth curve [5][10] - The company has a strong supply chain and order locking capabilities, which are crucial as foreign brands face production constraints, opening a window for domestic alternatives [2][3] - The company is backed by a state-owned enterprise, ensuring stable profits and high dividends, highlighting its defensive characteristics [4] Summary by Sections Diesel Generator Business - The company expects revenue of 575 million yuan in H1 2024 for its diesel generator business, with a growth of 15.1% and a gross margin of 13.8% [2] - The industry is experiencing a supply-demand imbalance, leading to price increases for foreign engines, which may enhance the company's gross margin per unit [2] Outdoor Power Equipment (OPE) - The global smart lawn mower market is projected to reach 44.07 billion USD by 2027, with a current penetration rate of only 4% [3] - The company launched its first boundary-less smart lawn mower in 2021, which has been adopted in notable projects [3] - In H1 2024, the OPE business is expected to generate 1.83 billion yuan in revenue with a gross margin of 20.5%, and new orders are projected to grow by 25% year-on-year [3] Financial Performance - The company forecasts a net profit of 1.13 billion yuan for 2024, representing a 10.1% increase, with a five-year CAGR of 20% [4] - The dividend payout ratio has consistently exceeded 40% from 2020 to 2023, with a stable dividend yield above 4% [4] - The company anticipates net profits of 1.13 billion, 1.27 billion, and 1.45 billion yuan for 2024, 2025, and 2026 respectively [5]