SIFANG(SH:601126) Huaxin Securities·2025-03-31 15:12Investment Rating - The report maintains a "Buy" investment rating for the company [1][8] Core Views - The company has demonstrated stable revenue growth, achieving an operating income of 6.951 billion yuan in 2024, a year-on-year increase of 20.86%, and a net profit attributable to shareholders of 716 million yuan, up 14.09% year-on-year [4][5] - The company has a strong commitment to high dividend payouts, with a proposed cash dividend of 600 million yuan for 2024, representing approximately 83.86% of the net profit attributable to shareholders [5] - The company is actively expanding its international market presence, particularly in Southeast Asia and Africa, while also exploring opportunities in Europe and the United States [6][7] Summary by Sections Financial Performance - In 2024, the company achieved an operating income of 69.51 billion yuan, with a breakdown showing 33.09 billion yuan from grid automation (up 13.18%) and 31.22 billion yuan from non-grid automation (up 25.35%) [5] - The company forecasts revenue growth for 2025-2027, with expected revenues of 84.15 billion yuan, 101.81 billion yuan, and 122.69 billion yuan respectively [8][10] Business Segments - The grid automation business remains robust, with the company holding a leading market share in relay protection products [6] - The non-grid business is also growing rapidly, particularly in the renewable energy sector, with revenues from this segment reaching 20.3 billion yuan, a 28% increase [5] International Expansion - The company is focusing on international market development, with plans to increase resource allocation for overseas operations in 2025 [6][7] - The company has obtained international certifications for several products, enhancing its competitiveness in global markets [7] Earnings Forecast - The earnings per share (EPS) are projected to be 1.01 yuan in 2025, 1.19 yuan in 2026, and 1.37 yuan in 2027, with corresponding price-to-earnings (P/E) ratios of 16.8, 14.3, and 12.4 [8][10]