Sinexcel Electric(SZ:300693) ZHONGTAI SECURITIES·2024-03-28 16:00Investment Rating - The report assigns a rating of "Buy" for the company, indicating a positive outlook for future performance [7]. Core Views - The company is expected to experience significant revenue growth, with projections of 2,651 million in 2023, increasing to 6,306 million by 2026, representing a compound annual growth rate (CAGR) of approximately 24% [7]. - The earnings per share (EPS) is forecasted to rise from 1.30 in 2024 to 2.96 in 2026, reflecting strong profitability growth [8]. - The report highlights a robust increase in operating income, with a year-on-year growth of 76% in 2023, followed by 47% in 2024, and a gradual decline to 24% by 2026 [7]. Financial Summary - Revenue projections are as follows: 2,651 million in 2023, 3,887 million in 2024, 5,087 million in 2025, and 6,306 million in 2026, indicating a strong upward trend [7]. - The company’s net income is expected to grow from 403 million in 2023 to 915 million in 2026, with a year-on-year growth rate of 80% in 2023 and 41% in 2024 [7]. - The price-to-earnings (P/E) ratio is projected to decrease from 22.8 in 2024 to 10.1 by 2026, suggesting an increasing valuation attractiveness over time [8]. Profitability Metrics - The report indicates a high return on equity (ROE) forecasted at 27.7% in 2023, slightly decreasing to 27.2% by 2026, which reflects strong management efficiency [8]. - The return on invested capital (ROIC) is expected to remain robust, starting at 35.1% in 2023 and declining to 31.7% by 2026, indicating effective capital utilization [8].