SUPCON Technology (SH:688777) SINOLINK SECURITIES·2024-02-26 16:00Investment Rating - The report maintains a "Buy" rating for the company, with a projected price-to-earnings (PE) ratio of 30.7 for 2023, 24.4 for 2024, and 19.0 for 2025 [2][9]. Core Insights - The company is expected to achieve a revenue of 8.62 billion RMB in 2023, with a year-over-year growth of 30.1%. The net profit is projected to be 1.1 billion RMB, reflecting a 37.8% increase year-over-year [2]. - The company is set to launch its first industrial AI large model, which is anticipated to revolutionize efficiency in process industries and enhance cost-effectiveness for clients [2]. - The downstream capital expenditure (Capex) in the chemical and petrochemical sectors showed improvement throughout 2023, indicating a positive trend in demand [2]. - The company is currently at a historically low valuation, which supports a long-term growth outlook through vertical product expansion, horizontal industry diversification, and international strategies [2]. Revenue and Profit Forecast - The revenue forecasts for 2023, 2024, and 2025 are 8.62 billion RMB, 11.23 billion RMB, and 14.57 billion RMB, respectively. The net profit forecasts for the same years are 1.1 billion RMB, 1.39 billion RMB, and 1.78 billion RMB [2][5]. - The earnings per share (EPS) are projected to be 1.40 RMB for 2023, 1.76 RMB for 2024, and 2.27 RMB for 2025 [2][5]. Valuation Metrics - The company's current valuation corresponds to a PE of 31 times the 2023 profit, which is at its historical lowest level [2]. - The report indicates a consistent growth trajectory with a projected net profit growth rate of 37.69% for 2024 and 28.57% for 2025 [5][6].