SCIYON(002380) 浙商证券·2024-08-11 03:23Investment Rating - The investment rating for the company is "Buy" [8] Core Views - The company has significantly improved its profitability in the first half of 2024, achieving total revenue of 805 million yuan, a week-on-week growth of 16.24%, and a net profit attributable to shareholders of 110 million yuan, a week-on-week increase of 153.55% [2][3] - The company benefits from a high demand in downstream industries, with a strong performance in industrial automation, industrial internet, and industrial software sectors [4][5] - The company is positioned as a leading player in the domestic thermal power DCS market, expected to benefit from strong market demand and equipment replacement [5] Financial Performance - In the first half of 2024, the company achieved total revenue of 805 million yuan, a year-on-year increase of 16.24%, and a net profit of 110 million yuan, a year-on-year increase of 153.55% [3] - The overall gross margin for the first half of 2024 was 40.13%, an increase of 4.15 percentage points year-on-year [3] - The company’s revenue from industrial automation, industrial internet, and industrial software was 693 million yuan, 106 million yuan, and 0 million yuan respectively, with year-on-year growth of 28.97% and a decline of 23.35% [3] Business Outlook - The company is expected to continue benefiting from favorable industry conditions, including energy security and equipment upgrades in the industrial sector [4] - The company is actively implementing AI solutions in its operations, with projects like smart monitoring and unmanned power plants showing promising results [4] - The estimated market size for DCS system replacements and new constructions in the thermal power sector is approximately 190 billion yuan [5] Earnings Forecast and Valuation - The company is projected to achieve revenues of 1.93 billion yuan, 2.56 billion yuan, and 3.27 billion yuan for 2024, 2025, and 2026 respectively, with year-on-year growth rates of 37.24%, 32.57%, and 27.83% [6] - The net profit attributable to shareholders is expected to reach 244 million yuan, 325 million yuan, and 417 million yuan for the same years, with growth rates of 51.98%, 33.13%, and 28.24% respectively [6] - The estimated earnings per share (EPS) for 2024, 2025, and 2026 are 1.02 yuan, 1.36 yuan, and 1.74 yuan respectively [6]