SUPCON Technology (SH:688777) Huaxin Securities·2024-03-03 16:00Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [2][9]. Core Insights - The company, Zhong控 Technology (688777.SH), is a leader in the process industrial intelligent manufacturing sector, showing steady growth in performance [4][5]. - In 2023, the company achieved a revenue of 8.619 billion yuan, a year-on-year increase of 30.12%, and a net profit attributable to shareholders of 1.099 billion yuan, up 37.81% year-on-year [3][4]. - The company has successfully expanded its market share in traditional industries like chemicals and petrochemicals while also making significant inroads into new markets such as metallurgy and overseas operations [4][5][7]. - The introduction of an AI model aimed at optimizing operations in the process industry is expected to enhance efficiency and competitiveness [8]. Summary by Sections Company Overview - Established in 1999, the company specializes in automation control systems, industrial software, and operational services, becoming a leading provider of intelligent manufacturing solutions in China and globally [5]. Financial Performance - The company reported a net profit margin of 12.76% in 2023, an increase of 0.71 percentage points year-on-year, reflecting improved profitability [4]. - Revenue growth from 2018 to 2022 was significant, with a compound annual growth rate (CAGR) of 32.74% [5]. Market Expansion - The company has made notable progress in international markets, including a successful acquisition and several high-value contracts in regions like the Middle East and Southeast Asia [6][7]. Future Outlook - The company forecasts net profits of 1.099 billion yuan in 2023, 1.318 billion yuan in 2024, and 1.585 billion yuan in 2025, with corresponding earnings per share (EPS) of 1.39 yuan, 1.67 yuan, and 2.01 yuan [9].