SUPCON Technology (SH:688777) SINOLINK SECURITIES·2024-06-06 13:02Investment Rating - The report maintains a "Buy" rating for the company, with expected revenue growth and profitability improvements over the next few years [4][5]. Core Insights - The company launched two groundbreaking products at the 2024 Global Product Launch: the Universal Control System (UCS) and the AI Time Series Model (TPT), marking a new era in industrial AI [4]. - The UCS product, Nyx, significantly reduces costs, with a 90% reduction in cabinet space, 80% decrease in cabling costs, and a 50% shorter construction period, which is expected to accelerate the replacement cycle among existing DCS customers [4]. - The TPT model aims to address industry challenges such as fragmented data applications, enabling a new software model that supports multiple application scenarios within factories [4]. - The company is also advancing its international strategy through the "CLUSTAR · Star River Plan," inviting global partners to enhance its ecosystem, which includes notable companies like Dell and Wood [5]. Financial Projections - The company’s projected revenues for 2024, 2025, and 2026 are 10.36 billion, 12.98 billion, and 16.66 billion RMB, respectively, with corresponding net profits of 1.25 billion, 1.54 billion, and 1.95 billion RMB [7]. - Earnings per share (EPS) are expected to be 1.58, 1.95, and 2.47 RMB for the years 2024, 2025, and 2026, respectively [5][7]. - The price-to-earnings (P/E) ratios are projected to be 27.1, 22.0, and 17.4 for the same years, indicating a favorable valuation trend [5][7].