SCIYON(SZ:002380) China Post Securities·2024-03-13 16:00Investment Rating - The report assigns a "Buy" rating for the company, indicating an expected stock price increase of over 20% relative to the benchmark index within the next six months [3][20]. Core Views - The company is a leading provider of industrial automation and information technology solutions, focusing on the industrial internet platform architecture, particularly in the energy and chemical sectors [21]. - The company is expected to achieve a turnaround in profitability, with projected net profit for 2023 estimated between 130 million to 156 million yuan, marking a significant recovery from previous losses [21]. - The report highlights strong growth in new orders and contract deliveries, driven by increasing demand for self-controlled solutions in downstream industries [21][22]. Financial Summary - The company’s revenue is projected to grow from 1,154 million yuan in 2022 to 2,897 million yuan by 2025, reflecting a compound annual growth rate (CAGR) of approximately 40.88% [7][25]. - The EBITDA is expected to increase significantly from 44.36 million yuan in 2022 to 441.51 million yuan in 2025, indicating a strong improvement in operational efficiency [7][25]. - The net profit attributable to the parent company is forecasted to turn positive, reaching 312.76 million yuan by 2025, with an EPS of 1.30 yuan [7][25]. - The company’s asset-liability ratio is projected to increase from 43.7% in 2023 to 50.5% in 2025, indicating a gradual increase in leverage [4][25]. Industry Outlook - The industrial automation sector is receiving strong support from national policies aimed at promoting modernization and technological upgrades, with significant market opportunities expected to arise from equipment updates and replacements [23][24]. - The government has identified the promotion of new productive forces and large-scale equipment updates as key tasks for 2024, which is anticipated to benefit the industrial automation industry significantly [23][24].