SIEYUAN(002028) 浙商证券·2024-10-03 02:23Investment Rating - The report gives a "Buy" rating for the company, marking the first coverage [2][67]. Core Insights - The company, a leading private power equipment manufacturer, has seen continuous expansion in product categories and rapid growth in overseas business, leading to improved profitability. In the first half of 2024, it achieved revenues and net profits of 6.17 billion and 890 million yuan, respectively, representing year-on-year growth of 16.3% and 26.6% [1][67]. - The company aims to achieve an order target of 20.6 billion yuan and revenue of 15 billion yuan in 2024, with expected year-on-year growth of 25% and 20% [1][67]. - The company has a strong track record of meeting its annual order and revenue targets, with completion rates exceeding 95% historically, indicating strong growth certainty and sustainability [1][67]. Summary by Sections 1. Continuous Expansion of Product Categories - The company has been deeply involved in the power equipment sector for 30 years, with a comprehensive product range covering both primary and secondary equipment [10]. - The company has established a clear shareholding structure, with a strong technical background among management personnel [11][12]. - The product categories continue to improve, with sustained increases in technical barriers and profitability [15][16]. 2. Company Products: Domestic Investment and Strong Overseas Demand - The company is expected to benefit from a new round of increased investment in the power grid, with the State Grid's investment projected to reach 600 billion yuan in 2024, a year-on-year increase of over 14% [40][41]. - The company’s core products, including high-voltage switches and transformers, are experiencing strong demand, with significant revenue growth [42][44]. - The company has absorbed Toshiba's technology for transformers, leading to rapid revenue growth in this segment [44][50]. 3. Overseas Business: Global Investment in Power Grids - The company has seen rapid growth in overseas orders and revenue, with overseas business accounting for 25% of total revenue in the first half of 2024 [1][53]. - The company has established a presence in over 100 countries, with a well-developed product solution capability and sales layout [52][53]. - The overseas business has achieved significant revenue growth, with a year-on-year increase of 40% in the first half of 2024 [1][53]. 4. Automotive Electronics: Leading Supercapacitor Technology - The company holds a 70.4% stake in Yancheng Carbon Energy, which has leading supercapacitor technology in China [58]. - The products have gained high recognition in the passenger vehicle market, with a market share exceeding 60% in mass-produced and designated automotive supercapacitor products [58][59]. 5. Profit Forecast and Valuation - The company is expected to achieve revenues of 15.26 billion, 18.66 billion, and 23.01 billion yuan from 2024 to 2026, with year-on-year growth rates of 22.5%, 22.3%, and 23.3% [1][66]. - The forecasted net profits for the same period are 2.08 billion, 2.60 billion, and 3.17 billion yuan, with corresponding year-on-year growth rates of 33.1%, 25.2%, and 22.0% [1][66]. - The report anticipates a price-to-earnings ratio of 27.57, 22.02, and 18.05 for the years 2024 to 2026 [1][67].