SIFANG(SH:601126) Guoxin Securities·2025-09-09 07:21Investment Rating - The investment rating for the company is "Outperform the Market" [5][26][30] Core Views - The company achieved stable revenue growth in the first half of 2025, with revenue of 4.02 billion yuan, up 15.62% year-on-year, and a net profit of 476 million yuan, up 12.41% year-on-year. However, the profit margins were affected by a shift in revenue structure [1][8] - The company is focusing on the AIDC (Artificial Intelligence Data Center) sector, leveraging its solid-state transformer technology to meet the demands of next-generation data centers [3][25] - The company has seen significant growth in its non-grid business, particularly in the offshore wind power and industrial automation sectors, with a 31.25% increase in revenue from power plants and industrial automation [2][21] Financial Performance - In Q2 2025, the company reported revenue of 2.19 billion yuan, a year-on-year increase of 13.44%, but a slight decline in net profit by 3.24% year-on-year due to slower revenue recognition [1][20] - The company's gross margin for the first half of 2025 was 30.52%, down 2.95 percentage points year-on-year, while the net margin was 11.84%, down 0.38 percentage points year-on-year [1][8] - The company has adjusted its profit forecast for 2025-2027, now expecting net profits of 828 million, 1.005 billion, and 1.205 billion yuan respectively, with year-on-year growth rates of 16%, 21%, and 20% [26][28] Market Position - The company has a leading position in the secondary equipment market, with a 60% increase in bid amounts for grid projects and a 15% increase in bids for southern grid projects [2][21] - The company is one of the few in China providing comprehensive solutions for data center power distribution systems, having secured multiple projects with major clients like Alibaba and China Mobile [25][21] Valuation Metrics - The company’s projected P/E ratios for 2025, 2026, and 2027 are 17, 14, and 12 respectively, indicating a favorable valuation compared to peers [26][27] - The expected revenue growth rates for the next few years are 17.3% in 2025, 13.2% in 2026, and 11.0% in 2027 [28]