SIEYUAN(SZ:002028) SINOLINK SECURITIES·2026-01-16 01:09Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected price increase of over 15% in the next 6-12 months [6][11]. Core Insights - The company reported a revenue of 21.21 billion RMB for 2025, a year-on-year increase of 37.2%, and a net profit attributable to shareholders of 3.16 billion RMB, up 54.5% year-on-year. The Q4 performance was particularly strong, with revenue of 7.38 billion RMB, reflecting a 46.1% increase, and a net profit of 970 million RMB, up 74.1% year-on-year [2]. - The sustained outperformance in 2025 is attributed to the continuous release of overseas orders since Q2 2023 and the delivery of high-margin domestic orders for 750kV transformers [3]. - The company significantly increased its market share in the domestic power grid bidding, with a 26% year-on-year increase in the State Grid's bidding for power transmission and transformation equipment, and an 82% increase in the company's successful bids [4]. - The company is expected to benefit from ongoing investments in the national grid, projected to reach 4 trillion RMB during the 14th Five-Year Plan, and from the ongoing shortage of power transformers in overseas markets, particularly North America [4]. - The company is optimistic about new business opportunities in supercapacitors, ultra-high voltage converters, and energy storage systems, with partnerships aimed at expanding its market presence [5]. Financial Projections - The company is projected to achieve net profits of 3.16 billion RMB, 4.31 billion RMB, and 5.76 billion RMB for the years 2025, 2026, and 2027, respectively, representing year-on-year growth rates of 54%, 36%, and 34% [6]. - The current stock price corresponds to a PE ratio of 38, 28, and 21 for the years 2025, 2026, and 2027, respectively [6].