SIFANG(601126) 华鑫证券·2024-06-10 23:00Investment Rating - The report initiates coverage with a "Buy" rating for the company, citing its leading position in secondary equipment and its potential to benefit from power grid investment and construction [6] Core Views - The company achieved revenue of 5,751 million yuan in 2023, a year-on-year increase of 13.24%, and net profit attributable to shareholders of 627 million yuan, up 15.46% year-on-year [2] - In Q1 2024, the company's revenue reached 1,550 million yuan, a 31% year-on-year increase, with net profit attributable to shareholders of 181 million yuan, up 28% year-on-year [2] - The company's gross margin in Q1 2024 was 33.96%, down 3.2 percentage points year-on-year, while the net profit margin was 11.72%, down 0.34 percentage points year-on-year [2] - The company is expected to benefit from the acceleration of power grid construction, with the National Development and Reform Commission and the National Energy Administration targeting significant improvements in power grid structure and capacity by 2025 [19] Financial Performance and Projections - The company's revenue is projected to grow from 6,676 million yuan in 2024 to 8,756 million yuan in 2026, with EPS expected to increase from 0.89 yuan in 2024 to 1.20 yuan in 2026 [6][7] - The company's net profit attributable to shareholders is forecasted to grow from 744 million yuan in 2024 to 1,001 million yuan in 2026, with a CAGR of 16.1% [7] - The company's ROE is expected to increase from 14.8% in 2023 to 21.0% in 2026, reflecting improved profitability [7] Market Position and Technological Leadership - The company secured its first 500kV secondary optimization demonstration station in Shandong and a digital secondary integrated substation in Inner Mongolia, maintaining its leading position in high-reliability substation technology [3] - The company won bids for 55 new-generation control stations for the State Grid and a digital twin smart substation project in Shenzhen, solidifying its leading position in the Southern Power Grid market [3] - The company also secured projects for the Baihetan Hydropower Station and next-generation WAMS master stations in North and East China, further demonstrating its technological leadership [3] Business Expansion and Diversification - The company is actively expanding its market presence, with its integrated primary and secondary distribution products maintaining a leading position in the Southern Power Grid and securing bids in key provinces of the State Grid [3] - The company is leveraging its power electronics platform to develop advanced energy storage technologies, including centralized, string, and high-voltage cascaded energy storage converters [20] - The company has completed the development of high-safety liquid-cooled energy storage PACKs and battery cabins, as well as intelligent commercial and industrial integrated cabinets, and has won multiple bids for energy management systems [20] Industry Outlook - The company is well-positioned to benefit from the rapid development of distributed new energy and charging infrastructure, with the government targeting 500 million kW of distributed new energy and 12 million charging piles by 2025 [19] - The company's focus on energy storage and grid-related technologies aligns with the broader industry trend towards a more flexible and resilient power grid [19][20]