Zhiyang Innovation Technology (SH:688191) GUOTAI HAITONG SECURITIES·2025-11-14 09:06Investment Rating - The report initiates coverage with a "Buy" rating for the company, targeting a price of 55.54 CNY per share [11][12]. Core Insights - The company is positioned as an AI enterprise that has successfully commercialized its technology in sectors such as electricity and water conservancy, and has launched the SF-X1 satellite-denial intelligent drone, which is expected to open new growth opportunities [2][12]. - The company has developed six foundational technology platforms, including an AI platform, big data and digital twin platform, and an intelligent drone technology platform, which support its digital transformation initiatives across various industries [12][29]. - The AI industry is at a strategic turning point, with the company focusing on deepening its understanding of industry scenarios and expanding its market share through successful commercial applications of AI technology [39][40]. Financial Summary - The company forecasts total revenue growth from 798 million CNY in 2023 to 1,741 million CNY in 2027, with annual growth rates of 18.9%, 21.6%, 20.5%, 21.1%, and 22.9% respectively [5][21]. - Net profit attributable to the parent company is projected to increase from 42 million CNY in 2023 to 114 million CNY in 2027, with growth rates of 48.4%, 23.6%, 25.7%, 32.9%, and 33.0% [5][21]. - The earnings per share (EPS) is expected to rise from 0.18 CNY in 2023 to 0.49 CNY in 2027 [5][21]. Revenue and Profitability Forecast - The company anticipates stable revenue growth in its transmission projects, with expected growth rates of 16%, 17%, and 18% from 2025 to 2027, and a gross margin improvement to 32.57% by 2027 [17]. - In the substation projects, revenue growth is expected to be 8%, 6%, and 5% over the same period, maintaining a gross margin of 23.27% [18]. - The rail transit projects are projected to see significant revenue growth of 60%, 50%, and 50% from 2025 to 2027, with gross margins increasing to 32.94% [19]. - The water conservancy projects are expected to grow at rates of 35%, 30%, and 30%, achieving a gross margin of 55.83% by 2027 [20]. Valuation Analysis - The report employs both PE and PS valuation methods, predicting a PE of 150x for 2026, leading to a target price of 55.54 CNY per share [25][26]. - The PS valuation method suggests a target price of 61.16 CNY per share based on projected revenues of 11.70 billion CNY in 2025 and 14.17 billion CNY in 2026 [26]. Product Launch - The company has launched the SF-X1 satellite-denial intelligent drone, designed for various inspection and detection tasks in challenging environments, enhancing operational capabilities in sectors like infrastructure and high-risk scenarios [48][49].