SIFANG(SH:601126) Xinda Securities·2024-05-05 01:30Investment Rating - The investment rating for the company is "Buy" [1] Core Views - The company reported significant growth in Q1 2024, with revenue reaching 1.545 billion yuan, a year-on-year increase of 31.21%, and a net profit of 181 million yuan, up 27.55% year-on-year [1][2] - The company's gross margin for Q1 2024 was 33.96%, down 3.2 percentage points year-on-year, while the net margin was 11.78%, down 0.32 percentage points year-on-year [2] - The rapid growth in grid investment and new energy installations is expected to drive the company's stable performance [2] - The company emphasizes technological innovation, with a high R&D expense ratio of 9.41% in 2023, focusing on hydrogen energy, flexible direct current, and energy storage [2] - The company's first mass-produced energy storage battery pack has successfully entered production, indicating strong future growth potential in the energy storage business [2] Financial Summary - Revenue projections for 2024-2026 are 6.67 billion yuan, 8.085 billion yuan, and 9.54 billion yuan, representing year-on-year growth rates of 16%, 21.2%, and 18% respectively [3] - Net profit forecasts for the same period are 748 million yuan, 897 million yuan, and 1.013 billion yuan, with year-on-year growth rates of 19.2%, 19.9%, and 13% respectively [3] - The company's gross margin is expected to be 33.6% in 2024, 32.4% in 2025, and 31.4% in 2026 [4] - The return on equity (ROE) is projected to be 16% in 2024, 17.3% in 2025, and 17.8% in 2026 [4] - The earnings per share (EPS) is expected to increase from 0.90 yuan in 2024 to 1.22 yuan in 2026 [4]