SANXING(SH:601567) Guoxin Securities·2025-08-25 11:51Investment Rating - The investment rating for the company is "Outperform the Market" [5][20]. Core Views - The company has shown steady revenue growth in the first half of 2025, with revenue reaching 7.972 billion yuan, a year-on-year increase of 13.93%. However, the gross margin has decreased to 28.97%, down 5.64 percentage points year-on-year, primarily due to the overseas distribution business being in the expansion phase and a temporary decline in domestic electricity product prices [1][7]. - The second quarter of 2025 saw a slight decline in performance, with revenue of 4.341 billion yuan, a year-on-year increase of 9.28%, but a net profit decrease of 5.77% year-on-year [1][18]. - The company is experiencing robust growth in its smart distribution business, with revenue of 6.354 billion yuan in the first half of 2025, up 19.53% year-on-year, and overseas revenue reaching 1.495 billion yuan, a significant increase of 50.9% [2][18]. - The company has successfully entered new overseas markets, achieving first orders in Hungary, Romania, and Kyrgyzstan, and has also made breakthroughs in the North American market with smart meters [19]. Financial Summary - The company’s financial forecasts for 2025-2027 indicate expected net profits of 2.524 billion yuan, 3.182 billion yuan, and 3.998 billion yuan, respectively, with year-on-year growth rates of 12%, 26%, and 2% [20][22]. - The projected revenue for 2025 is 17.008 billion yuan, with a growth rate of 16.5% compared to 2024 [4][22]. - Key financial metrics include a dynamic PE ratio of 13.0 for 2025, 10.3 for 2026, and 8.2 for 2027, indicating a favorable valuation outlook [20][22].