SIEYUAN(SZ:002028) HUAXI Securities·2026-01-27 08:51Investment Rating - The investment rating for the company is "Buy" [4] Core Insights - The company reported a revenue of 21.21 billion yuan for 2025, representing a year-on-year growth of 37%. The net profit attributable to shareholders reached 3.16 billion yuan, up 54% year-on-year, while the net profit excluding non-recurring items was 2.96 billion yuan, reflecting a 58% increase [1] - The company is expected to benefit from the ongoing expansion and renovation of the U.S. power grid, with a tight supply-demand situation for high-voltage equipment. The delivery cycles for transformers in the U.S. have reached 143 weeks and 128 weeks for booster and power transformers, respectively [1] - Domestic investment in the power grid is increasing, with the State Grid Corporation expected to invest 4 trillion yuan during the 14th Five-Year Plan, a 40% increase from the previous plan. The company has shown strong bidding performance in domestic projects, indicating potential for significant growth in its domestic business [2] Financial Performance Summary - Revenue projections for 2025 and 2026 have been revised upwards to 21.21 billion yuan and 26.83 billion yuan, respectively, with a new forecast for 2027 set at 35 billion yuan. The expected revenue growth rates for 2025-2027 are 37.2%, 26.5%, and 30.5% [3] - The net profit forecasts for 2025 and 2026 have been adjusted to 3.16 billion yuan and 4.24 billion yuan, respectively, with a new forecast for 2027 at 6.02 billion yuan. The expected net profit growth rates for 2025-2027 are 54.3%, 34.2%, and 41.8% [3] - Earnings per share (EPS) are projected to be 4.05 yuan for 2025, 5.43 yuan for 2026, and 7.71 yuan for 2027, with corresponding price-to-earnings (PE) ratios of 47X, 35X, and 25X based on the closing price of 189.26 yuan on January 27, 2026 [3]