SUPCON Technology (SH:688777) Guolian Securities·2024-06-07 08:02Investment Rating - The investment rating for the company is "Buy" (maintained) with a target price of 55.48 CNY, based on the current price of 44.14 CNY [2]. Core Insights - The company has launched two groundbreaking products: the universal control system UCS and the AI temporal model TPT, marking a significant step towards industrial AI development [3][4]. - The UCS product, named Nyx, utilizes a cloud-native architecture that drastically reduces costs, with a 90% reduction in cabinet space, 80% decrease in cable costs, and a 50% shorter construction period [4]. - The TPT model addresses key industrial challenges such as anomaly warning and operational optimization, transitioning from multiple models to a single model supporting various applications [5]. - The company is building a core competitive advantage in "AI + data," aiming to enhance production efficiency and reduce costs across various industrial processes [6]. Financial Forecasts and Valuation - Projected revenues for 2024-2026 are 10.661 billion CNY, 13.077 billion CNY, and 15.836 billion CNY, with year-on-year growth rates of 23.68%, 22.66%, and 21.11% respectively [7]. - The net profit attributable to the parent company is expected to be 1.252 billion CNY, 1.545 billion CNY, and 1.973 billion CNY for the same period, with growth rates of 13.64%, 23.39%, and 27.68% respectively [7]. - The company is valued at a 35x PE ratio for 2024, leading to a target price of 55.48 CNY, reflecting its leadership position in the domestic process automation sector and its transition towards an industrial AI company [7].