SIE(300687) 广发证券·2024-04-25 08:02Investment Rating - The report maintains a "Buy" rating for the company, with a target price of approximately 24.97 CNY per share, corresponding to a PE valuation of about 33X for 2024 EPS [2][27][38]. Core Insights - The first major client's contribution to revenue has significantly decreased, which may be a key reason for the slowdown in the growth of the ERP business. The revenue from this client dropped to 620 million CNY in 2023 from 802 million CNY in 2022. The pace of signing and delivering contracts with state-owned enterprises in 2024 will greatly influence the revenue growth of this business [13][37]. - The tightening of audits may have impacted the company's performance in 2023, but subsequent year-on-year and quarter-on-quarter changes have established a more solid foundation despite being lower than expected [37][64]. - The company is expected to achieve net profits of 310 million CNY, 384 million CNY, and 490 million CNY from 2024 to 2026, with growth rates of 21.8%, 23.8%, and 27.6% respectively [65]. Financial Performance Summary - In 2023, the company reported total revenue of 2.254 billion CNY, a slight decrease of 0.75% year-on-year. The net profit attributable to shareholders was 254 million CNY, an increase of 1.98% year-on-year, while the net profit excluding non-recurring items was 186 million CNY, a decrease of 17.27% year-on-year [7][40]. - The smart manufacturing business generated revenue of 830 million CNY in 2023, reflecting a year-on-year growth of 2.56% with a gross margin of 43.16% [7][41]. - The company’s R&D expenses increased by 19.5% year-on-year to 321 million CNY, accounting for 14.26% of total revenue [8][59]. Future Outlook - The company anticipates total revenues of 2.637 billion CNY, 3.224 billion CNY, and 4.051 billion CNY for 2024 to 2026, with respective growth rates of 17.0%, 22.3%, and 25.6% [65]. - The report highlights the importance of capturing the trend of intelligent manufacturing upgrades among domestic manufacturing enterprises to achieve higher quality growth [53][76].