SINEE(SH:688395) Southwest Securities·2024-04-28 08:30Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 21.50 CNY based on a 25x PE for 2024 [6][19]. Core Insights - The company has shown rapid improvement in gross margin, with a focus on "overseas + energy storage" driving growth potential [1][38]. - Revenue for 2023 is projected at 3.73 billion CNY, with a year-on-year growth of 7.4%, and net profit attributable to the parent company is expected to reach 0.51 billion CNY, growing by 11.5% [38]. - The company is expected to achieve revenue of 4.6 billion CNY, 5.5 billion CNY, and 6.4 billion CNY from 2024 to 2026, with net profit growth rates of 43.9%, 28%, and 20.9% respectively [38]. Financial Summary - Revenue and profit forecasts for the company are as follows: - 2023A: Revenue of 3.73 billion CNY, net profit of 0.51 billion CNY - 2024E: Revenue of 4.58 billion CNY, net profit of 0.74 billion CNY - 2025E: Revenue of 5.47 billion CNY, net profit of 0.94 billion CNY - 2026E: Revenue of 6.44 billion CNY, net profit of 1.14 billion CNY [2][38]. - The gross margin for 2023 is reported at 32.9%, with a net profit margin of 13.7% [38]. Business Segments - The company has diversified its product offerings, with significant contributions from general frequency converters, integrated machines, and servo systems, showing growth in various application fields [38]. - The energy storage segment is expected to see substantial growth, with a projected order delivery growth rate of 100% in 2024, 50% in 2025, and 50% in 2026 [5][38]. - The overseas industrial control business has shown strong profitability, with a revenue increase of 42.4% in 2023, and a gross margin of 44.1% [38].