SUPCON Technology (SH:688777) INDUSTRIAL SECURITIES·2024-05-28 02:01Investment Rating - The report maintains a "Buy" rating for the company [3]. Core Views - The company is set to launch two major new products in June, which are expected to revolutionize traditional DCS technology: the first universal control system UCS and the first AI temporal model TPT [1][2]. - The company achieved a revenue of 8.62 billion yuan in 2023, representing a year-on-year growth of 30.13%, and a net profit of 1.102 billion yuan, up 38.08% year-on-year [2][4]. - The company is focusing on cost control and increasing R&D investment in DCS and AI upgrades, with R&D expenses rising by 31.13% to 908 million yuan in 2023 [2][4]. Financial Performance - Revenue projections for 2024-2026 are adjusted to 10.678 billion, 13.119 billion, and 16.011 billion yuan, respectively, with expected growth rates of 23.9%, 22.9%, and 22.0% [4][5]. - The net profit forecast for the same period is set at 1.232 billion, 1.502 billion, and 1.822 billion yuan, with growth rates of 11.8%, 21.9%, and 21.3% [4][5]. - The company's gross margin for 2023 was 33.19%, with a slight decrease attributed to the higher revenue share from lower-margin S2B business [2][4]. Market Expansion - The company is expanding both domestically and internationally, with significant revenue growth in various sectors: metallurgy (62.87%), energy (34.70%), petrochemicals (29.27%), and chemicals (23.70%) [2]. - The overseas market strategy has seen success, with nearly 1 billion yuan in new overseas contracts signed in 2023, and overseas revenue exceeding 343 million yuan, a year-on-year increase of 37.42% [2].