SMHC(SH:600131)2024-06-07 13:01Investment Rating - The report maintains a "Buy" rating for the company [6] Core Views - The company is positioned to benefit from the ongoing electricity system reform and the acceleration of digital investment in the energy sector [6][7] - Recent government initiatives emphasize the importance of digitalization and optimization in the energy market, which is expected to enhance the company's growth prospects [6][7] Summary by Relevant Sections Market Data - Closing price as of June 6, 2024: 19.08 CNY - One-year high/low: 21.58/12.77 CNY - Price-to-book ratio: 3.6 - Circulating A-share market value: 22,788 million CNY [1] Financial Data - As of March 31, 2024, the company has a net asset per share of 5.28 CNY and a debt-to-asset ratio of 51.32% [2] - Total shares: 1,202 million, circulating A-shares: 1,194 million [2] Revenue and Profit Forecast - Total revenue forecast for 2024: 8,847 million CNY, with a year-on-year growth of 15.3% - Net profit forecast for 2024: 1,026 million CNY, with a year-on-year growth of 23.9% - Earnings per share forecast for 2024: 0.85 CNY [5][7] Investment Analysis - The company is expected to see a significant increase in its market share in digitalization projects, with a projected net profit of 10.3 billion CNY in 2024, 11.9 billion CNY in 2025, and 14.1 billion CNY in 2026 [6][7] - The current stock price corresponds to a price-to-earnings ratio of 22x for 2024, 19x for 2025, and 16x for 2026 [6]