SIEYUAN(002028) 长江证券·2024-05-20 05:02Investment Rating - The report maintains a "Buy" rating for the company [5]. Core Views - The company reported strong Q1 2024 results, with revenue of 2.658 billion yuan, a year-on-year increase of 22.36%, and a net profit attributable to shareholders of 363 million yuan, up 66.32% year-on-year [4][5]. - The increase in revenue is primarily attributed to higher sales of switchgear and related products, with a gross margin of 30.7%, an increase of 4.48 percentage points year-on-year [5]. - The company is benefiting from a favorable industry environment, with significant investments in the power grid and power generation sectors [5]. - The company is expanding its product lines and market reach, focusing on innovation and new business opportunities in flexible DC transmission, energy storage, and other areas [5]. - The forecast for 2024 indicates a continued high level of demand in the power grid sector, with an expected net profit of 2 billion yuan, corresponding to a valuation of 25 times [5]. Summary by Sections Financial Performance - Q1 2024 revenue reached 2.658 billion yuan, a 22.36% increase year-on-year - Net profit attributable to shareholders was 363 million yuan, up 66.32% year-on-year - Operating cash flow improved significantly, with a net cash flow of -110 million yuan, an improvement of 72.63% year-on-year [4][5]. Industry Outlook - The power grid investment in Q1 2024 was 76.6 billion yuan, a year-on-year increase of 14.7% - Power generation investment reached 136.5 billion yuan, up 7.7% year-on-year - The company’s products are well-positioned to meet the growing demand in the power grid and generation sectors [5]. Strategic Initiatives - The company is focusing on expanding its product categories and market presence, with an emphasis on technological innovation - Plans include enhancing market share in the power grid sector and strengthening capabilities in high-end markets and overseas expansion [5].