SUPCON Technology (SH:688777) KAIYUAN SECURITIES·2024-04-08 16:00Investment Rating - The investment rating for the company is "Buy" (maintained) [2][3] Core Views - The company is a leader in intelligent manufacturing for process industries, benefiting from increased R&D investment and a robust growth outlook [3] - The company reported rapid growth in 2023, with operating revenue of 8.62 billion yuan, a year-on-year increase of 30.13%, and a net profit attributable to shareholders of 1.10 billion yuan, up 38.08% year-on-year [4] - The company is expanding its market share in traditional sectors while also venturing into new industries and overseas markets, with significant growth in DCS market share in the chemical and petrochemical sectors [5] - The outlook for overseas markets is promising, with the establishment of subsidiaries in countries like Singapore and Saudi Arabia, and new contracts worth nearly 1 billion yuan signed [6] Financial Summary - The projected net profit attributable to shareholders for 2024-2026 is estimated at 1.27 billion, 1.55 billion, and 1.88 billion yuan respectively, with EPS expected to be 1.61, 1.97, and 2.39 yuan per share [3][7] - The company's operating revenue is forecasted to grow from 11.28 billion yuan in 2024 to 18.52 billion yuan in 2026, reflecting a compound annual growth rate of approximately 28% [7][11] - The company's management efficiency is improving, with a decrease in management expense ratio to 5.22% and a sales expense ratio to 9.15% in 2023 [5] Market Position - The company holds a 37.8% market share in the domestic DCS market, with a 56.3% share in the chemical sector and a 49.3% share in the petrochemical sector [5] - The company is well-positioned to benefit from domestic policies promoting large-scale equipment updates and technological innovation, which are expected to boost downstream market conditions [6]