SUPCON Technology (688777)2024-04-18 03:30Investment Rating - The report maintains a "Recommended" rating for the company [1] Core Views - The company reported a revenue of 1.738 billion yuan for Q1 2024, representing a year-on-year growth of 20.25%. The net profit attributable to shareholders was 145 million yuan, up 57.39% year-on-year, while the net profit excluding non-recurring items reached 119 million yuan, growing by 76.05% year-on-year [1] - The company has effectively controlled expenses, with a slight decline in gross margin to 31.03%, down 6.9% from the same period last year. Sales expenses increased by 11.57% to 165 million yuan, while management expenses decreased by 4.5% to 97 million yuan. R&D expenses rose by 10.53% to 206 million yuan, indicating a slowdown in R&D investment growth [1] - The company is accelerating its layout in the AI and robotics sectors, launching the industry's first AI model for process industry optimization and design, which could lead to revolutionary efficiency improvements. Additionally, the company introduced its first humanoid robot, "Navigator 1," which is fully developed domestically [1] - The company has secured significant projects, including a digital transformation project with China National Petroleum Corporation worth over 100 million yuan, and has seen a doubling of overseas orders, with new contracts nearing 1 billion yuan [1] - The investment forecast for EPS from 2024 to 2026 is projected at 1.76, 2.28, and 3.12 yuan, respectively, with corresponding P/E ratios of 25.18X, 19.44X, and 14.26X, indicating strong long-term growth potential [1][4] Financial Summary - For 2024E, the company is expected to achieve a revenue of 10.703 billion yuan, with a growth rate of 24.17%. The net profit attributable to shareholders is projected at 1.393 billion yuan, reflecting a growth rate of 26.47% [4] - The company’s gross margin is expected to stabilize around 33.08% in 2024E, with a net profit margin of approximately 13.02% [5] - The total assets are projected to grow from 17.88 billion yuan in 2023 to 21.37 billion yuan in 2024E, indicating a healthy balance sheet [5]