SIEYUAN(SZ:002028) Minsheng Securities·2025-07-13 10:32Investment Rating - The report maintains a "Recommended" rating for the company, indicating an expected stock price increase of over 15% relative to the benchmark index [4][3]. Core Insights - The company reported impressive H1 2025 results, with revenue reaching 8.497 billion yuan, a year-on-year increase of 37.80%, and net profit attributable to shareholders at 1.293 billion yuan, up 45.71% [1][2]. - The company is benefiting from a robust global infrastructure cycle in the power grid sector, with significant growth in both domestic and international markets [2][3]. - The company announced a stock buyback plan, reflecting confidence in its long-term development [2]. Financial Performance Summary - For H1 2025, the company achieved a revenue of 8.497 billion yuan and a net profit of 1.293 billion yuan, with Q2 alone showing a revenue of 5.270 billion yuan, a 50.21% increase year-on-year [1]. - The company aims to achieve new contract orders of 26.8 billion yuan in 2025, a 25% increase year-on-year, and expects total revenue of 18.5 billion yuan, a 20% increase [1][2]. - Revenue projections for 2025-2027 are 18.579 billion yuan, 22.317 billion yuan, and 26.814 billion yuan, with corresponding growth rates of 20.2%, 20.1%, and 20.1% [3][8]. Profitability Metrics - The net profit attributable to shareholders is projected to be 2.506 billion yuan in 2025, with growth rates of 22.3%, 24.5%, and 29.3% for the following years [3][8]. - The report indicates a consistent increase in gross margin, expected to rise from 31.25% in 2024 to 33.01% in 2027 [8][9]. Market Position and Strategy - The company is focused on expanding its market share in the domestic power grid sector while also pursuing growth in international markets, particularly in countries like Saudi Arabia, the UK, and Italy [2][3]. - The stock buyback plan, with a budget of 300 million to 500 million yuan, demonstrates the company's commitment to enhancing shareholder value [2].