SCIYON(SZ:002380) Southwest Securities·2024-05-06 02:00Investment Rating - The report assigns a "Buy" rating for the company with a target price of 25.00 CNY over the next six months [1]. Core Insights - The company has shown significant growth in revenue and profit, with a 2023 revenue of 14.1 billion CNY, a 21.9% increase year-on-year, and a net profit of 1.6 billion CNY, recovering from a loss in the previous year [50]. - The company is positioned as a leading player in the industrial automation sector, particularly in the energy industry, benefiting from the domestic push for self-controlled systems in power generation [27][28]. - The company has a strong order pipeline, with multiple contracts secured for DCS system projects, indicating an acceleration in demand [8][50]. Financial Performance - Revenue growth is projected to continue, with expected revenues of 19.0 billion CNY in 2024 (+35.0%), 24.4 billion CNY in 2025 (+28.6%), and 30.5 billion CNY in 2026 (+24.7%) [34]. - The net profit forecast for 2024 is 2.4 billion CNY (+49.9%), followed by 3.1 billion CNY in 2025 (+29.4%) and 4.0 billion CNY in 2026 (+27.4%) [34]. - The company's EPS is expected to be 1.00 CNY in 2024, 1.30 CNY in 2025, and 1.66 CNY in 2026, with corresponding dynamic PE ratios of 16, 12, and 10 [34][68]. Business Overview - The company has over 30 years of experience in the industrial automation and information technology sectors, providing a comprehensive range of products and solutions including DCS, PLC, industrial robots, and real-time databases [4][6]. - The company has established a robust incentive mechanism to align the interests of management and shareholders, enhancing team motivation and cohesion [5]. - The company is actively expanding its international presence, with projects in countries such as Pakistan, Dubai, and Hungary, enhancing its brand influence in overseas markets [30]. Market Position - The company is recognized as a top-tier provider of DCS systems in China, with a significant market share in the power generation sector, particularly in the context of increasing domestic demand for self-controlled systems [27][28]. - The company has successfully transitioned to a fully self-controlled system, the NT6000, which has been certified by relevant authorities and implemented in major projects [55]. Future Outlook - The company is well-positioned to capitalize on the ongoing trends in industrial automation and digital transformation, with a focus on intelligent manufacturing and the integration of AI technologies [30]. - The anticipated growth in the industrial automation sector, driven by government initiatives such as "Industry 4.0" and "Made in China 2025," presents significant long-term growth opportunities for the company [30].