SDL(SZ:002658)2024-03-28 16:00Investment Rating - The investment rating for the company has been adjusted to "Outperform" due to a downward revision of profit forecasts for 2024-2025 [1] Core Insights - The company is expected to benefit from infrastructure projects in thermal power and the growth of its industrial process analysis and carbon monitoring businesses, despite the downward adjustment in profit forecasts [1] - The company's revenue for 2023 was reported at 1.51 billion yuan, with a year-on-year growth of 0.37%, while the net profit attributable to shareholders was 203 million yuan, reflecting a year-on-year decline of 28.51% [20] - The environmental monitoring system revenue decreased to 1.208 billion yuan in 2023, down 5.53% year-on-year, impacted by weak downstream demand and increased competition [9] Financial Performance - The company's total revenue is projected to grow from 1.51 billion yuan in 2023 to 2.29 billion yuan by 2026, with a compound annual growth rate (CAGR) of approximately 11.3% [11] - The net profit attributable to shareholders is expected to increase from 203 million yuan in 2023 to 291 million yuan in 2026, indicating a recovery trend [11] - The operating cash flow for 2023 reached 318 million yuan, a year-on-year increase of 54.96%, with a dividend payout ratio of 92.5% [6] Business Segments - The industrial process analysis segment achieved revenue of 244 million yuan in 2023, with a year-on-year growth of 42.16%, benefiting from major project wins in traditional sectors and advancements in new fields [5] - The carbon monitoring segment is expanding its product offerings and has secured multiple pilot projects in the thermal power and cement industries [21] - The environmental monitoring system has faced challenges, but the company has made progress in securing contracts for significant projects, including national monitoring station equipment updates [9]