xinje(603416) 招商证券·2025-03-26 08:05Investment Rating - The report maintains a "Buy" rating for the company [1][4]. Core Views - The company is a leading domestic player in small PLCs and is expanding its product lines, enhancing its solution capabilities, and strengthening its competitive edge [1][8]. - The automation industry is showing signs of recovery after a period of stagnation, with expectations for growth in the PLC and general servo markets by 2026 [49]. Financial Data and Valuation - Total revenue is projected to grow from 1,335 million RMB in 2022 to 2,592 million RMB by 2026, with a compound annual growth rate (CAGR) of approximately 21% [3]. - The net profit attributable to shareholders is expected to increase from 199 million RMB in 2023 to 365 million RMB in 2026, reflecting a growth rate of 25% [3]. - The company's PE ratio is projected to decrease from 41.0 in 2023 to 22.4 in 2026, indicating an improving valuation [3]. Company Overview - The company, established in 2008, specializes in industrial automation products, including PLCs, servo systems, HMIs, and intelligent devices, and has a strong market position in China [12][16]. - The company has a stable management team and emphasizes R&D investment, with a significant increase in R&D expenses over the years [24][28]. Product Line Expansion - The company is expanding its product offerings beyond small PLCs to include medium and large PLCs, servo systems, and visual and robotic solutions, enhancing its overall solution capabilities [1][30]. - The market share for small PLCs reached 7.5% in 2023, ranking the company among the top four in the industry [30]. Shareholder Structure and Incentives - The company has implemented a stock incentive plan for key personnel and is increasing the shareholding of its controlling shareholder from 23.1% to 31.2% through a private placement [1][46]. Industry Outlook - The automation industry is expected to recover, with projections indicating that the market for PLCs and general servos will reach 18.84 billion RMB and 24.70 billion RMB, respectively, by 2026 [49].