CCA(SH:603100) Huaan Securities·2025-03-31 11:44Investment Rating - The investment rating for the company is "Buy" (首次) [1] Core Views - The company is a leading player in the industrial automation instrument sector, with steady growth in revenue and net profit. It is one of the three major instrument and meter bases in the country, focusing on industrial control systems and engineering solutions, with over 80% of revenue coming from this segment. The revenue CAGR from 2017 to 2023 is 16.6%, and in 2023, the revenue reached 74.11 billion yuan, up 16.3% year-on-year [5][19][23]. - The industrial automation instrument market has significant growth potential, with the market expected to reach 1.08 trillion yuan by 2024, driven by policy support and downstream demand. The CAGR for the industry from 2018 to 2024 is projected at 4.7% [6][39]. - The company is enhancing its competitiveness through a multi-product strategy and aims to become a solution provider. It has introduced 59 new automation solutions in 2023, expanding its customer base [8][9]. Summary by Sections Company Overview - The company is a key player in the industrial automation instrument sector, with a comprehensive product range including smart actuators, smart valves, and smart transmitters. The main revenue source is the industrial control system segment, which has maintained over 80% of total revenue [5][19][28]. - The company has shown steady revenue growth, with a CAGR of 15.81% from 2018 to 2023, and a net profit CAGR of 13.98% during the same period. The net profit for 2023 was 7.46 billion yuan, up 28.43% year-on-year [23][25]. - The introduction of a state-owned enterprise as a shareholder in January 2025 is expected to enhance business collaboration and strategic positioning [31]. Industry Analysis - The industrial automation instrument market is projected to reach 1.08 trillion yuan by 2024, with a CAGR of 4.7% from 2018 to 2024. The market is supported by government policies and a favorable downstream environment [6][39]. - The high-end market is primarily dominated by foreign brands, indicating significant room for domestic brands to increase their market share through import substitution [49]. - The industrial control system segment is the largest within the instrument manufacturing industry, accounting for 34.68% of the market share in 2019, with a market space exceeding 300 billion yuan [42][44].