SIFANG(SH:601126) Minsheng Securities·2024-03-19 16:00Investment Rating - The report maintains a "Recommended" rating for the company [2][7]. Core Insights - The company achieved an annual revenue of 5.751 billion yuan in 2023, representing a year-on-year growth of 13.24%. The net profit attributable to shareholders was 627 million yuan, up 15.46% year-on-year [2][5]. - The company's profitability is steadily improving, with a gross margin of 34.44% in 2023, an increase of 2.29 percentage points year-on-year. The net profit margin was 10.92%, up 0.21 percentage points year-on-year [2][5]. - The company benefits from the construction of a new power system and the dual carbon policy, focusing on technological innovation and market opportunities [2][5]. Business Performance - The revenue from grid automation was 2.924 billion yuan, growing by 11.01% year-on-year, while revenue from power plant and industrial automation reached 2.491 billion yuan, increasing by 11.55% year-on-year [2][5]. - In Q4 2023, the company reported a revenue of 1.514 billion yuan, a year-on-year increase of 2.39% and a quarter-on-quarter increase of 10.78% [2][5]. - The company has a comprehensive business covering "generation, transmission, distribution, utilization, and storage," maintaining a leading technological advantage [2][5]. International Business Growth - The overseas business revenue reached 160 million yuan in 2023, a year-on-year increase of 10.6%, with several international projects successfully secured [2][5]. - Key international projects include a 500kV substation project in Pakistan and a dynamic reactive power compensation project in India, marking the company's expansion into new markets [2][5]. Financial Forecast - The company is projected to achieve revenues of 7.035 billion yuan, 8.467 billion yuan, and 10.211 billion yuan for 2024, 2025, and 2026, respectively, with corresponding growth rates of 22.3%, 20.4%, and 20.6% [2][5]. - The net profit attributable to shareholders is expected to be 752 million yuan, 893 million yuan, and 1.057 billion yuan for the same years, with growth rates of 19.9%, 18.7%, and 18.5% [2][5].