Group 1 - The core viewpoint of the report is that China Galaxy has given a "recommended" rating to Siyuan Electric (002028.SZ) based on its positive outlook and growth potential in the domestic and overseas markets [1] Group 2 - The company is steadily increasing its market share in the domestic power grid sector and has established a joint venture for IGCT valve groups [1] - Overseas expansion is expected to boost profitability significantly [1] - Supercapacitors are anticipated to become a new growth point for the company [1]

Investment Rating - The investment rating for the company is "Outperform the Market" [5][25][26] Core Views - The company has achieved record high performance in Q3, with revenue and profit growth driven by expanding overseas business [1][19] - The company has significantly increased its overseas revenue, which accounted for 34% of total revenue in the first half of 2025, reflecting a year-on-year growth of 89% [2][21] - The establishment of a joint venture for IGCT valve group indicates the company's strategic expansion into new business areas [2][24] - The company has made notable advancements in supercapacitor applications, securing major projects in the automotive sector [2][24] Financial Performance Summary - For the first three quarters of 2025, the company reported revenue of 138.27 billion yuan, a year-on-year increase of 32.86%, and a net profit of 21.91 billion yuan, up 46.94% [1][7] - In Q3 2025, the company achieved revenue of 53.30 billion yuan, a year-on-year increase of 25.68%, and a net profit of 8.99 billion yuan, up 48.73% [1][19] - The gross margin for Q3 2025 was 33.25%, an increase of 2.29 percentage points year-on-year, while the net margin was 17.67%, up 2.99 percentage points [1][19] - The company has revised its profit forecasts for 2025-2027, expecting net profits of 30.50 billion yuan, 40.45 billion yuan, and 49.50 billion yuan respectively [3][25] Financial Metrics Summary - The projected revenue for 2025 is 193.96 billion yuan, with a growth rate of 25.5% [4] - The projected net profit for 2025 is 30.50 billion yuan, reflecting a growth rate of 48.8% [4] - The company's PE ratios for 2025, 2026, and 2027 are projected to be 31, 24, and 19 respectively [3][25]

Core Viewpoint - The company aims for a 25% growth in orders for the year, with confidence in meeting its annual targets despite challenges [1] Order Completion and Growth - As of September, the order completion is on track with most business orders showing growth [1] - Domestic orders are stable, while overseas orders are growing at a faster rate [4] Revenue and Profitability - For the first three quarters of 2025, the company reported a main revenue of 13.827 billion yuan, a year-on-year increase of 32.86%, and a net profit of 2.191 billion yuan, up 46.94% [14] - The gross margin stands at 32.32%, with stable material prices contributing to this [14][3] Future Expectations - The company maintains a positive outlook on gross margin due to scale effects, although depreciation from completed projects may negatively impact it [3] - New product development is ongoing, but its impact on total revenue is currently minimal [8] International Orders - The average fulfillment cycle for overseas orders is longer compared to domestic orders [2] - The company has seen an increase in overseas EPC orders, particularly in Southeast Asia and Africa [12] R&D and Innovation - The company is increasing R&D investments to drive innovation and enhance core competitiveness [10] - Collaboration with the Huairou Laboratory aims to advance IGCT technology and market applications [7] Financial Metrics - The company’s liabilities ratio is at 45.94%, with investment income reported at 32.73 million yuan [14] - Recent institutional ratings show 14 buy ratings and 1 hold rating, with an average target price of 127.52 yuan [15]

Group 1: Company Overview - In the first three quarters of 2025, the company achieved a revenue of approximately 13.827 billion CNY, aligning with phase expectations [2] - The overall business scale has expanded, with some segments experiencing rapid growth, leading to increased inventory and temporary cash flow pressure [2] Group 2: Order Completion and Growth - The company aims for a 25% growth in total orders for the year, with order completion as of September meeting phase targets [2][3] - Domestic and overseas order fulfillment rates remain stable, with overseas orders having a longer average fulfillment cycle [4] Group 3: Profitability and Cost Management - The overall gross margin is expected to be maintained due to scale effects, with stable material prices this year [5] - The completion of ongoing projects will lead to depreciation costs, which may negatively impact gross margins [5] Group 4: New Orders and Market Segments - Overseas orders are growing faster than the average, while domestic orders in systems, new energy, and energy storage are meeting expectations [6] - The company is confident in the potential of supercapacitors in various applications, including automotive electronics and AI [7] Group 5: Financial Performance and Future Projections - Significant changes in other income for Q3 are attributed to the timing of government subsidies [8] - The company is in collaboration with the Huairou Laboratory to establish a joint venture for IGCT technology, aiming for innovation and market expansion [9] - New products are expected to have a minimal impact on total revenue in the near term [10] - Revenue targets for 2026 have not yet been determined, but the company is committed to continuous growth [11] Group 6: Expense Management - R&D expenses will continue to increase to drive innovation and core competitiveness [12] - Marketing expenses are rising due to market expansion efforts, while management expenses will be controlled [12] - The proportion of overseas revenue to total revenue has not shown significant fluctuations [13]

Core Insights - The company reported record high revenue and profit in Q3, exceeding market expectations, with revenue, net profit attributable to shareholders, and net profit excluding non-recurring items reaching 5.33 billion, 899 million, and 800 million yuan respectively, representing year-on-year growth of 25.7%, 48.7%, and 41.6% [1] - The company has been expanding its product range and increasing its market share, particularly in the power electronics sector, and has established a joint venture to develop IGCT valve groups [2] - The company is strategically investing in overseas markets, with significant growth in orders from regions like Europe, North America, Southeast Asia, and Africa, which are expected to contribute to overall growth [2] Financial Performance - Q3 revenue and profit reached historical highs, with a quarter-on-quarter increase of 1.13% in revenue and 6.2% in net profit [1] - Gross margin improved to 33.25%, with a year-on-year increase of 2.29 percentage points, while net margin reached 17.67%, up 2.99 percentage points year-on-year [1] - As of Q3 2025, inventory and contract liabilities were 5.027 billion and 2.896 billion yuan respectively, indicating a year-on-year increase of 37.4% and 29.5%, confirming a strong order backlog [1] Product Development - The company is continuously expanding its product offerings, particularly in supercapacitors and IGCT valve groups, to enhance its competitive position [2] - Recent investments in power electronics and the establishment of a joint venture for IGCT valve groups are expected to facilitate entry into new markets [2] Strategic Outlook - The company has a clear operational strategy and strong management capabilities, positioning it well for long-term growth [3] - Future earnings projections for 2025-2027 have been revised upwards to 2.9 billion, 3.75 billion, and 4.7 billion yuan, maintaining a "strong buy" rating [3]

Investment Rating - The report maintains a "Strong Buy" rating for the company [3]. Core Insights - The company achieved record high quarterly revenue and profit in Q3, exceeding market expectations, with revenue of 5.33 billion yuan and net profit of 899 million yuan, representing year-on-year growth of 25.7% and 48.7% respectively [7]. - The company has a strong order backlog, with sufficient orders supporting continued revenue growth, and has seen significant growth in overseas orders since 2024 [7]. - The company is expanding its product range and enhancing its market share, particularly in high-value products, which is expected to improve profit margins [7]. - The company is strategically investing in overseas markets, with increasing contributions from regions like Europe, North America, and Southeast Asia [7]. - The report projects significant revenue growth for the company, with expected revenues of 29.0 billion yuan, 37.5 billion yuan, and 47.0 billion yuan for 2025 to 2027 [7]. Financial Data and Valuation - Total revenue is projected to grow from 12.46 billion yuan in 2023 to 28.29 billion yuan in 2027, with a compound annual growth rate (CAGR) of 20% [2][24]. - Operating profit is expected to increase from 1.78 billion yuan in 2023 to 5.59 billion yuan in 2027, reflecting a CAGR of 25% [2][24]. - Net profit attributable to shareholders is forecasted to rise from 1.56 billion yuan in 2023 to 4.70 billion yuan in 2027, with a CAGR of 25% [2][24]. - The company’s price-to-earnings (PE) ratio is projected to decrease from 53.3 in 2023 to 17.7 in 2027, indicating improving valuation metrics [2][24].