SUPCON Technology (688777) 国联证券·2024-04-10 16:00Investment Rating - The report maintains a "Buy" rating for the company with a target price of 55.48 RMB [6][8] Core Views - The company's 2023 performance met expectations, with revenue reaching 8.62 billion RMB, a YoY increase of 30.13%, and net profit attributable to shareholders of 1.102 billion RMB, a YoY increase of 38.08% [2] - The company is accelerating its expansion in four strategic growth areas: internationalization, 5S stores + S2B platform, industry depth, and new business segments [6] - The company is expected to benefit from industrial equipment renewal and is a leader in the domestic process automation industry [6] Market Position - The company's DCS system holds a 37.8% domestic market share, ranking first for 13 consecutive years [3] - The SIS system has a 33.7% domestic market share, ranking first for two consecutive years [3] - The APC software holds a 28.2% domestic market share, ranking first for five consecutive years [3] - The MES system holds a 20.7% domestic market share in the process industry, ranking first for two consecutive years [3] - The OTS system holds a 14% domestic market share, ranking first for the first time [3] Domestic and International Expansion - Domestic revenue increased by 29.54% YoY, with significant growth in metallurgy (62.87%), energy (34.70%), petrochemicals (29.27%), and chemical industries (23.70%) [4] - The new energy battery segment achieved revenue of 634 million RMB, a YoY increase of 463.06% [4] - The company secured nearly 1 billion RMB in overseas contracts, including projects in Saudi Arabia, Kuwait, and Malaysia [4] Product Performance - Revenue from industrial automation and intelligent manufacturing solutions reached 4.956 billion RMB, a YoY increase of 13.51% [5] - Revenue from industrial software reached 703 million RMB, a YoY increase of 11.15% [5] - Revenue from S2B reached 1.897 billion RMB, a YoY increase of 117.07% [5] - Revenue from instruments and meters reached 621 million RMB, a YoY increase of 80.27%, driven by the acquisition of Dutch company Hobré [5] Financial Forecast - Revenue is expected to reach 10.661 billion RMB in 2024, 13.077 billion RMB in 2025, and 15.836 billion RMB in 2026, with YoY growth rates of 23.68%, 22.66%, and 21.11% respectively [6] - Net profit attributable to shareholders is expected to reach 1.252 billion RMB in 2024, 1.545 billion RMB in 2025, and 1.973 billion RMB in 2026, with YoY growth rates of 13.64%, 23.39%, and 27.68% respectively [6] - EPS is expected to be 1.59 RMB in 2024, 1.96 RMB in 2025, and 2.50 RMB in 2026, with a 3-year CAGR of 21.43% [6] Valuation - The company is valued at 35x PE for 2024, with a target price of 55.48 RMB [6] - The current price is 43.88 RMB, with a one-year high of 110.20 RMB and a low of 34.00 RMB [8]