SMHC(SH:600131) Changjiang Securities·2025-05-09 09:42Investment Rating - The investment rating for the company is "Buy" and is maintained [8] Core Views - The company has significantly increased its market share in communication equipment, with effective measures to resolve competition within the industry [5][6] - The company’s subsidiaries, Jiyuan Software and Zhongdian Feihua, won contracts worth 477 million yuan in the 2025 procurement by the State Grid Corporation [2][5] - The total amount of contracts won by the company and its subsidiaries in the recent bidding rounds reached 803 million yuan, accounting for 93.24% of the total [12] Summary by Sections Event Description - On May 8, the company announced that its subsidiaries won a major contract worth 477 million yuan in the State Grid's 2025 procurement for communication network equipment integration [2][5] - Additionally, the company is in the process of acquiring 100% equity of Yili Technology, which won contracts totaling 326 million yuan [2][5] Event Commentary - The recent bidding results indicate that the measures to resolve competition issues have been effectively implemented, leading to a substantial increase in the company's market share in communication equipment procurement [12] - The company is expected to achieve a net profit of approximately 864 million yuan in 2025, corresponding to a PE ratio of about 26 times, excluding the impact of Yili Technology's consolidation [12]