SUPCON Technology (SH:688777) Huachuang Securities·2025-09-04 11:37Investment Rating - The report maintains a "Strong Buy" rating for the company, expecting it to outperform the benchmark index by over 20% in the next six months [2][8]. Core Views - The company reported a revenue of 3.83 billion yuan for the first half of 2025, a year-on-year decrease of 9.92%, and a net profit attributable to shareholders of 354 million yuan, down 31.46% year-on-year. The decline in revenue and profit is attributed to industry competition, reduced bank wealth management and interest income, and increased foreign exchange losses [2][3]. - Despite short-term performance pressure, the company is focusing on industrial AI and robotics, which are becoming the core growth engines, partially offsetting the short-term pressures from traditional businesses. The industrial AI product TPT generated revenue of 117 million yuan, while the robotics segment brought in 110 million yuan, with new orders totaling 200 million yuan [3][8]. - The company maintains a leading position in traditional business, with a domestic market share of 40.4% in distributed control systems (DCS) and 31.2% in safety instrumented systems (SIS). The company has also made significant strides in overseas market expansion, including a contract with Algeria's national oil and gas company [3][8]. - The "1+2+N" strategic framework is being implemented, with industrial robots achieving large-scale deployment. The company has launched the world's first time-sequence hybrid expert model-driven industrial agent generation platform (TPT 2) and has signed 938 subscription-based clients, marking a strategic breakthrough in its business model [3][8]. - The company expects revenue growth of 2.0%, 13.5%, and 14.1% for 2025, 2026, and 2027, respectively, with net profit attributable to shareholders projected at 1.139 billion yuan, 1.274 billion yuan, and 1.450 billion yuan for the same years. The target price is set at 57.96 yuan, based on a 36x PE ratio for 2026 [3][8]. Financial Summary - For 2025, the company anticipates total revenue of 9.319 billion yuan, with a year-on-year growth rate of 2.0%. The net profit attributable to shareholders is expected to be 1.139 billion yuan, reflecting a growth rate of 1.9% [4][9]. - The company's total market capitalization is approximately 38.15 billion yuan, with a circulating market value of 37.77 billion yuan. The asset-liability ratio stands at 42.31% [5][9].