思源电气20241107

Key Points Industry and Company * Company: Siyuan Electric * Industry: Power equipment, particularly transformers and high-voltage switches Core Views and Arguments * Revenue and Profit Growth: Siyuan Electric has seen a 24% revenue growth rate and a 20% net profit growth rate over the past 20 years. The average operating margin is 15%. The company's overseas revenue accounts for 25% of its total revenue. * Future Growth: Siyuan Electric expects its revenue growth rate to remain similar to the past 20 years, but its net profit growth rate may accelerate by 4 percentage points. The operating margin is expected to increase from 15% to 18%. * Stock Performance: The stock's return on equity (ROE) has historically been close to its ROE level. However, during periods of systemic decline in ROE, the stock's return has been significantly lower than its average ROE level. Conversely, during periods of systemic increase in ROE, the stock's return has been significantly higher. * Investment Recommendation: Siyuan Electric is recommended as a "white horse" stock due to its strong fundamentals and growth prospects. Other Important Points * Domestic and Overseas Markets: Siyuan Electric's domestic market is stable, with a focus on market share growth. The overseas market is experiencing rapid growth, driven by demand for energy transformation in developed countries and new infrastructure development in developing countries. * Product Portfolio: Siyuan Electric has a comprehensive product portfolio, including transformers, high-voltage switches, capacitors, inductors, and other products. The company has a strong presence in both the primary and secondary equipment markets. * Order Book: Siyuan Electric has a strong order book, with a high conversion rate from orders to revenue. The company has set ambitious order and revenue targets for 2023, which are expected to be achieved. * Profitability: Siyuan Electric's profitability is expected to improve due to strong demand for transformers and high-voltage switches in the overseas market, as well as the company's ability to secure high-quality orders. * Growth Prospects: Siyuan Electric's overseas business is expected to drive future growth, with a focus on market share expansion and increased revenue from overseas markets.