SUPCON Technology (688777) Guoyuan Securities·2024-04-13 16:00Investment Rating - The report maintains a "Buy" rating for the company, citing its strong growth potential and continuous business expansion [5] Core Viewpoints - The company achieved rapid revenue and profit growth in 2023, with revenues reaching 8.62 billion yuan, a 30.13% year-on-year increase, and net profit attributable to shareholders reaching 1.102 billion yuan, a 38.08% year-on-year increase [2] - The company's overseas business made significant breakthroughs, with new overseas contracts nearing 1 billion yuan, and it established subsidiaries in Singapore, Saudi Arabia, and Kazakhstan [3] - The company continues to invest heavily in R&D, with R&D expenses reaching 907.807 million yuan, accounting for 10.53% of total revenue, and R&D personnel accounting for 34.28% of the total workforce [4] Financial Performance - The company's domestic sales revenue increased by 29.54%, with significant growth in the metallurgical, energy, petrochemical, and chemical industries [3] - The company's gross margin was 33.19% in 2023, with a net margin of 12.78% and ROE of 11.21% [10] - The company's revenue is expected to grow to 10.806 billion yuan in 2024, 13.442 billion yuan in 2025, and 16.425 billion yuan in 2026, with corresponding net profits of 1.339 billion yuan, 1.617 billion yuan, and 1.939 billion yuan [5] Overseas Expansion - The company secured high-profile overseas projects, including digital projects with Saudi Aramco, Kuwait Oil Company, and Malaysia's national oil company, as well as digital management projects with Indorama Group and Singapore's Wilmar International [3] - The company's overseas localization capabilities have significantly improved, with major contracts in Saudi Arabia and other regions [3] R&D and Innovation - The company has made breakthroughs in AI technologies for process industries, including reinforcement learning, natural language models, and edge intelligent vision detection controllers [4] - The company's R&D team grew by 6.07% in 2023, with 2,219 R&D personnel, representing 34.28% of the total workforce [4] Market Valuation - The company's current P/E ratio is 31.46, with expected P/E ratios of 25.90, 21.44, and 17.88 for 2024, 2025, and 2026, respectively [5] - The company's target price is set at 43.88 yuan, with a 52-week high/low of 103.90 yuan and 35.23 yuan [6][7]