SIFANG(SH:601126) EBSCN·2025-04-01 15:21Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for future performance [4]. Core Insights - The company achieved a revenue of 6.951 billion yuan in 2024, representing a year-on-year growth of 20.86%, and a net profit attributable to shareholders of 716 million yuan, up 14.09% year-on-year [1]. - The company is actively expanding its business in both grid automation and industrial automation sectors, with significant projects in the renewable energy market [2][3]. - The company has successfully participated in major projects, including offshore wind power expansions and advanced grid equipment, which are expected to contribute to long-term growth [3]. Summary by Sections Financial Performance - In 2024, the company reported a revenue of 6.951 billion yuan, a 20.86% increase from the previous year, and a net profit of 716 million yuan, reflecting a 14.09% growth [1]. - The fourth quarter of 2024 saw a revenue of 1.858 billion yuan, a 22.66% increase year-on-year, but a 42.63% decrease quarter-on-quarter [1]. Business Segments - The grid automation business generated 3.309 billion yuan in revenue, a 13.18% increase, while the gross margin slightly decreased to 41.54% [2]. - The industrial automation sector achieved 3.122 billion yuan in revenue, marking a 25.35% growth, with a gross margin of 25.48% [2]. Future Projections - The company forecasts net profits of 869 million yuan, 1.002 billion yuan, and 1.130 billion yuan for 2025, 2026, and 2027 respectively, with corresponding EPS of 1.04 yuan, 1.20 yuan, and 1.36 yuan [4][5]. - The report anticipates a steady growth trajectory with a projected revenue increase of 21.36% in 2025 and 15.43% in 2026 [5]. Valuation Metrics - The current stock price corresponds to a P/E ratio of 16 for 2025, 14 for 2026, and 13 for 2027, indicating a favorable valuation compared to expected earnings growth [4][5].