SUPCON Technology (SH:688777) GOLDEN SUN SECURITIES·2025-04-01 02:05Investment Rating - The report maintains a "Buy" rating for the company [3][5]. Core Views - The company reported a stable and impressive performance in its annual report for 2024, achieving total revenue of 913.85 million yuan, a year-on-year increase of 6.02%, and a net profit attributable to the parent company of 111.70 million yuan, up 1.38% year-on-year. After excluding GDR exchange losses, the net profit attributable to the parent company, adjusted for non-recurring gains and losses, reached 101.24 million yuan, reflecting a growth of 20.26% year-on-year [1]. - The company is experiencing rapid growth in its overseas business, with international revenue reaching 74.9 million yuan, a significant increase of 118.27% year-on-year, accounting for approximately 8.25% of total revenue [2]. - The company continues to solidify its leading position in the smart manufacturing sector, with a domestic market share of 40.4% in distributed control systems (DCS) and 31.2% in safety instrumented systems (SIS) [3]. Financial Performance - In 2024, the company achieved total revenue of 913.85 million yuan, with a year-on-year growth rate of 6.0%. The net profit attributable to the parent company was 111.70 million yuan, with a growth rate of 1.4% [4]. - The projected net profits for 2025, 2026, and 2027 are estimated to be 1.29 billion yuan, 1.49 billion yuan, and 1.73 billion yuan, respectively, with corresponding P/E ratios of 32, 28, and 24 times [3][4]. - The company’s core products, including DCS and SIS, maintain a strong market presence, particularly in the chemical and petrochemical sectors, where market shares are 63.2% and 56.2%, respectively [3]. Industry Analysis - The petrochemical and chemical industries show stable revenue growth, with the petrochemical sector growing by 10.59% and the chemical sector by 5.89%. New industries such as oil and gas, pharmaceuticals, and food and beverage are contributing to new growth opportunities, with oil and gas revenue increasing by 47.84% and pharmaceuticals by 17.38% [2]. - The company’s international strategy is advancing, with a focus on expanding its international market presence, evidenced by new overseas contracts signed amounting to 1.355 billion yuan, a growth of over 35% year-on-year [2].