SIEYUAN(SZ:002028)2026-01-19 02:32Sieyuan Electric (002028.SZ) Conference Call Summary Company Overview - Company: Sieyuan Electric - Ticker: 002028.SZ - Industry: Grid Equipment Key Financial Highlights - FY25 Revenue: Rmb 21,205 million, representing a 37% year-over-year increase and a 2% increase from previous estimates [4] - FY25 Net Income: Rmb 3,163 million, reflecting a 54% year-over-year increase and a 1% increase from previous estimates [4] - 4Q25 Implied Revenue: Rmb 7,378 million, up 46% year-over-year [4] - 4Q25 Implied Net Income: Rmb 971 million, up 74% year-over-year [4] - Net Profit Margin (NPM) for 4Q25: 13.2%, which is 2.7 percentage points lower than the first three quarters of FY25 [4] Growth Projections - Revenue CAGR (2025-2030): Expected to be 23% [5] - Net Profit CAGR (2025-2030): Expected to be 28% [5] - Overseas Revenue CAGR (2025-2030): Expected to be 36%, increasing its contribution from 33% to 56% of total revenue [5][6] Market Position and Strategy - Sieyuan is positioned among the top 1-3 in various product categories within the Chinese grid equipment market [6] - The company is expected to benefit from a global grid upgrade cycle driven by aging infrastructure, economic development, and renewable energy [6] - Market share in switchgear is projected to grow from 6% in 2025 to 8% in 2030, and in power transformers from 1% to 6% [6] Valuation and Price Target - 12-month Price Target: Rmb 195.6, based on a 2028E P/E of 25x, discounted to 2026E at a cost of equity (CoE) of 9.5% [6][7] - Current Price: Rmb 185.9, indicating an upside potential of 5.2% [9] Risks - Key risks include: 1. Overseas execution risk [8] 2. Potential for margins to fall below expectations [8] 3. A slowdown in data center construction pace [8] Additional Insights - The company has a multi-product portfolio that enhances its competitive advantages and execution capabilities overseas [6] - Sieyuan's unique positioning is attributed to its ability to combine high quality with a long-term commitment to rigorous certification processes and sustained investments [6] Conclusion - Sieyuan Electric is well-positioned for growth in the grid equipment sector, with strong financial projections and a clear strategy to enhance its market share both domestically and internationally. The investment thesis remains positive, supported by robust growth forecasts and a solid valuation framework.