SUPCON Technology (SH:688777) Haitong Securities·2024-03-03 16:00Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [1] Core Views - The company has shown steady growth in performance, with emerging businesses developing rapidly. In 2023, the company achieved operating revenue of 8.619 billion yuan, a year-on-year increase of 30%, and a net profit attributable to shareholders of 1.1 billion yuan, up 38% year-on-year. The main reasons for this performance include maintaining a leading position in traditional industries such as chemicals and petrochemicals, significant market expansion in metallurgy, batteries, overseas markets, and PLC, as well as improved internal digital governance capabilities leading to a decrease in overall expense ratios [3][4] Summary by Sections Financial Performance - In 2023, the company reported operating revenue of 8.619 billion yuan, a 30% increase from the previous year. The net profit attributable to shareholders was 1.1 billion yuan, also reflecting a 38% year-on-year growth. The non-recurring net profit was 945 million yuan, marking a 38% increase [3][4] Business Development - The company is set to launch its first generative industrial AI model aimed at optimizing and designing process industries. This model will utilize vast amounts of production, operational, process, equipment, and quality data, potentially revolutionizing efficiency in process industries [4] - The company has secured a significant project with Saudi Aramco for AMR intelligent robots, accelerating its "AI + Robotics" strategy. The investment in a humanoid robot innovation center aims to develop new business and technology in humanoid robots, contributing to the creation of a "PA + BA architecture unmanned factory" [4] Earnings Forecast and Investment Recommendations - The company is expected to achieve steady growth in its business, with traditional sectors consolidating their advantages and emerging sectors expanding successfully. Revenue forecasts for 2023-2025 are 8.619 billion, 11.480 billion, and 15.145 billion yuan, respectively, with net profits of 1.1 billion, 1.438 billion, and 1.639 billion yuan. The estimated EPS for the same period is 1.39, 1.82, and 2.08 yuan. The company is given a dynamic PE of 30-35 times for 2024, with a reasonable value range of 54.62-63.73 yuan over the next six months [4][5][6]