SUPCON Technology (SH:688777)2024-04-10 16:00Investment Rating - The report maintains a "Buy" rating for the company [2][7]. Core Views - The company reported a revenue of 8.62 billion, a year-on-year increase of 30.13%, and a net profit attributable to the parent company of 1.10 billion, up 38.08% year-on-year, which aligns with market expectations [2][7]. - The company has a leading market share in various segments, with significant growth in international business [7][8]. - The company is expected to maintain its profit forecasts for 2024-2025 and has introduced profit forecasts for 2026, projecting net profits of 1.26 billion, 1.61 billion, and 2.01 billion respectively for those years [7][8]. Summary by Sections Financial Performance - In 2023, the company achieved a revenue of 86.20 billion, with a year-on-year growth of 30.13%, and a net profit of 11.02 billion, reflecting a 38.08% increase [2][8]. - The gross margin for 2023 was 33.19%, a decrease of 2.49 percentage points year-on-year, while the net margin was 13.03%, an increase of 0.84 percentage points [7][8]. Product and Market Analysis - The company’s DCS market share reached 37.8%, maintaining the top position for thirteen consecutive years, with other segments also showing strong market positions [7][8]. - The company’s international revenue grew by 37.42% year-on-year, primarily driven by expansion in Southeast Asia and the Middle East [7][8]. Future Outlook - The company forecasts a revenue growth rate of 24.2% for 2024, with a gradual decline in growth rates expected in subsequent years [8][9]. - The projected PE ratios for 2024, 2025, and 2026 are 28X, 22X, and 17X respectively, indicating a favorable valuation outlook [7][8].