Event

The Company publishes its 2024 Annual Report after the close of business on March 31, 2025.

Comments:

Steady growth in revenue and profit, significant improvement in operating net cash flow

In 2024, the company achieved operating income of 9.139 billion yuan, a year-on-year increase of 6.02%; the net profit attributable to the parent company was 1.117 billion yuan, a year-on-year increase of 1.38%; the net profit deducted from non-attributable to the parent company was 1.038 billion yuan, a year-on-year increase of 9.51%; Net cash flow from operating activities was RMB434 million, representing a year-on-year increase of 126.69%.

In 2024, the amount of GDR fund exchange income will be 25.1749 million yuan (after deducting income tax, the same below), and the amount of GDR fund exchange income in the same period last year will be 105.5888 million yuan, and the net profit attributable to the parent company will be 1.092 billion yuan after excluding the impact of GDR fund exchange gains and losses, a year-on-year increase of 9.60%; After excluding the impact of foreign exchange gains and losses of GDR funds, the net profit after deducting non-attributable to the parent company was 1.012 billion yuan, a year-on-year increase of 20.26%.



In 2024, the company continued to increase R&D investment, with R&D expenses of 978 million yuan, a year-on-year increase of 7.73%, accounting for 10.70% of operating income. The company grandly launched the world's first UCS general control system and TPT timing industrial model, two epoch-making innovative products. Based on the production process automation PA (Process Automated) scenario, the company independently develops a generative AI algorithm framework, and learns and forms a general law of industrial equipment operation by integrating pre-training by collecting massive production operation, process, equipment and quality data of different industries, different factories and different devices. and even factory Redesign and other work. At present, TPT has made breakthroughs in more than 10 plants and devices such as chlor-alkali, thermoelectric and petrochemical.

Accelerated the development of the international market, and the overseas business revenue increased by 118.27% year-on-year

In 2024, the company's internationalization strategy will continue to advance and deepen, and the overseas business will enter a new stage of development.

The company's overseas business income was 749 million yuan, a year-on-year increase of 118.27%, accounting for about 8.25% of the company's main operating income. At present, the company has an overseas team of nearly 300 people and has set up 21 subsidiaries in Singapore, Saudi Arabia, Kazakhstan, Canada, Japan and other countries. In 2024, the company signed new overseas contracts of 1.355 billion yuan, a year-on-year increase of more than 35%. The company has achieved in-depth cooperation with top international customers such as Saudi Aramco, Indonesia Pertamina, Malaysia's Petronas, Thailand's PTT, Switzerland's Holcim, Japan's Mitsubishi Chemical and other international top customers in the fields of control systems, industrial software, robots, industrial control and network security.

Profit Forecast and Investment Suggestions

The company is committed to meeting the needs of process industry automation, digitalization and intelligence, and after years of development, it has grown into an overall solution provider of intelligent manufacturing, with broad growth space in the future. It is predicted that the company's operating income in 2025-2027 will be 102.65, 115.02, and 12.843 billion yuan, the net profit attributable to the parent company will be 12.45, 14.32, and 1.677 billion yuan, and the EPS will be 1.57, 1.81, and 2.12 yuan per share, and the corresponding PE will be 30.04, 26.10, and 22.29 times. Considering the growth space of the industry and the continued growth of the company's business, the "buy" rating is maintained.

Risk Warning:

Risks of technology upgrades and product updates and iterations; the risk that R&D progress is not as expected; the risk of infringement of intellectual property rights and the risk of leakage; the risk of loss of core talent; the risk of increased competition in the market; operational risks in overseas markets; exchange rate risk; Risks to the macro environment.