SANAN(SH:600703) Orient Securities·2025-09-09 14:11Investment Rating - The report maintains a "Buy" rating for the company with a target price of 17.40 CNY based on a projected average PE of 60 times for comparable companies in 2026 [3][6]. Core Views - The company is expected to achieve earnings per share of 0.09 CNY, 0.29 CNY, and 0.38 CNY for the years 2025 to 2027, respectively, with adjustments made to revenue and gross margin forecasts [3][12]. - The company is expanding its application fields and optimizing its product layout, particularly in power semiconductor and LED businesses, which are anticipated to show resilience despite market challenges [11]. Financial Summary - Revenue projections for the company are as follows: 14,053 million CNY in 2023, growing to 27,995 million CNY by 2027, reflecting a compound annual growth rate (CAGR) of approximately 21% [5]. - The gross margin is expected to improve from 10.2% in 2023 to 18.2% in 2027, indicating a positive trend in profitability [5]. - The net profit attributable to the parent company is forecasted to rise from 367 million CNY in 2023 to 1,888 million CNY in 2027, with significant growth rates in the coming years [5]. - The company’s operating profit is projected to increase from 495 million CNY in 2023 to 2,341 million CNY in 2027, showcasing a robust growth trajectory [5].