SUPCON Technology (SH:688777) Zhongyuan Securities·2025-11-04 13:05Investment Rating - The report assigns a rating of "Increase Holding" for the company, indicating an expected relative increase of 5% to 15% compared to the CSI 300 index over the next six months [22]. Core Insights - The company reported a revenue of 5.654 billion yuan for the first three quarters of 2025, representing a year-on-year decline of 10.78%. Net profit was 432 million yuan, down 39.78% year-on-year, with a non-recurring net profit of 338 million yuan, down 48.37% year-on-year [7][8]. - The traditional business of the company is experiencing a downturn due to adverse macroeconomic conditions, including increased tariffs, inflation, geopolitical risks, and lower-than-expected interest rate cuts. Revenue and net profit have consistently declined over the first three quarters of 2025 [8]. - The company's next growth engine is expected to come from industrial AI, with the launch of the TPT industrial model in June 2024 and its upgrade to TPT 2.0 in August 2025. The TPT model has already been applied in over 110 projects, generating 154 million yuan in revenue in the first three quarters of 2025 [8][9]. - Successful case studies of TPT's practical effects have been reported, including significant reductions in workforce and operational efficiency improvements in various industrial applications [8]. - The company has accumulated data from over 100,000 production units in domestic process industries, indicating a substantial potential for AI applications to unlock value in the industry [8]. Financial Summary - For 2025, the company is projected to have earnings per share (EPS) of 0.84 yuan, 1.18 yuan, and 2.26 yuan for the years 2025, 2026, and 2027, respectively. The corresponding price-to-earnings (PE) ratios are expected to be 62.19, 44.32, and 23.08 based on the closing price of 52.25 yuan on November 3, 2025 [9].