SIEYUAN(SZ:002028) Soochow Securities·2025-08-17 11:01Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company's performance in the first half of 2025 met market expectations, with significant growth in overseas revenue contributing to improved profitability [2][8] - The overseas revenue increased by 89% year-on-year, accounting for 34% of total revenue, driven by strong demand and rising market prices [8] - Domestic revenue also showed a solid growth of 21% year-on-year, although domestic gross margin experienced a slight decline due to increased competition and changes in the market [8] Financial Summary - Total revenue is projected to grow from 12,460 million RMB in 2023 to 29,631 million RMB by 2027, reflecting a compound annual growth rate (CAGR) of approximately 23% [1] - Net profit attributable to shareholders is expected to rise from 1,559 million RMB in 2023 to 5,003 million RMB in 2027, indicating a CAGR of around 31% [1] - The earnings per share (EPS) is forecasted to increase from 2.00 RMB in 2023 to 6.43 RMB in 2027, with a corresponding decrease in price-to-earnings (P/E) ratio from 43.46 to 13.54 [1] Market and Operational Insights - The company has increased its investment in market and sales, leading to a significant rise in sales expenses by 52% year-on-year [8] - Inventory and contract liabilities have also grown substantially, indicating a strong order backlog and a solid foundation for future growth [8] - The company is expected to maintain steady growth in domestic operations, with the delivery of new products anticipated to improve gross margins in the second half of 2025 [8]