SIE(SZ:300687) Huajin Securities·2024-02-03 16:00Investment Rating - The report assigns an "Accumulate" rating to the company [1]. Core Insights - The company is expected to achieve revenue of 2.385 to 2.612 billion yuan in 2023, representing a year-on-year growth of 5% to 15%. The net profit attributable to shareholders is projected to be between 260 to 300 million yuan, reflecting a year-on-year increase of 4.22% to 20.26% [1]. - The company has made significant strides in the central state-owned enterprise market, which is anticipated to be a key growth driver moving forward. The revenue growth in Q4 2023 is expected to be between 703 to 930 million yuan, with a year-on-year increase of 16% to 54% [1]. - The company is focusing on enhancing its presence in the intelligent manufacturing sector and expanding its client base in high-demand industries, which is expected to further boost revenue growth in 2024 [1]. Financial Projections - The company forecasts revenues of 2.544 billion yuan in 2023, 3.240 billion yuan in 2024, and 4.003 billion yuan in 2025, with corresponding net profits of 263 million yuan, 347 million yuan, and 452 million yuan respectively [4][16]. - The gross margin is projected to improve from 35.54% in 2023 to 37.10% in 2025, indicating a positive trend in profitability [4][16]. - The report highlights that the company's revenue growth in the general ERP business is expected to be 6% in 2023, followed by 20% in 2024 and 17.8% in 2025, while the intelligent manufacturing and industrial internet business is projected to grow at rates of 16.5%, 37.9%, and 30% over the same period [5][4]. Market Positioning - The company is positioned as a leader in discrete industrial software and is expected to benefit from the recovery in demand from downstream manufacturing clients. The focus on the central state-owned enterprise market since 2023 is anticipated to provide additional performance flexibility [19]