S.C(SZ:300724) Changjiang Securities·2024-02-27 16:00Investment Rating - The report maintains a "Buy" rating for the company [7]. Core Views - The company has announced a "Quality Return Dual Improvement" action plan, focusing on its core business and aiming to build a technology platform enterprise. Key initiatives include continuous innovation, solid governance, enhanced information disclosure, and a commitment to shareholder returns through ongoing cash dividends [5][6]. Summary by Relevant Sections Company Overview - The company is a leading manufacturer of photovoltaic equipment, with main products including wet process equipment, vacuum equipment, and complete line solutions for crystalline silicon batteries. It has a comprehensive layout in various photovoltaic cell technology routes such as TOPCon, HJT, and perovskite [5][6]. Innovation and R&D - The company has established a robust R&D system and is advancing the integration of production, learning, and research. It aims to meet industry demands for cost reduction and efficiency improvement through continuous technological and product innovation. R&D expenses for Q1-Q3 2023 reached 378 million, with an R&D expense ratio of 5.9% [5][6]. Financial Performance - The company has a strong order backlog, with significant growth in inventory and contract liabilities, indicating high demand. The expected net profits for 2023-2025 are projected to be 1.71 billion, 2.67 billion, and 3.54 billion respectively, with corresponding PE ratios of 13x, 8x, and 6x [6][12]. Shareholder Returns - The company emphasizes shareholder returns, having approved a share buyback plan using 50 million to 100 million of its own funds. Over the past three years, cumulative cash dividends accounted for 25.56% of the average annual net profit attributable to the parent company [5][6].