Haitong International Securities grants "Buy" rating to Sieyuan Electric.

Jul 17, 2023 (China Knowledge) - Haitong International Securities released a research report assigning a "Buy" rating to Sieyuan Electric (002028), with a target price range of RMB 29.25-32.50.

Sieyuan Electric is a leading supplier of primary and secondary electrical equipment, with advanced product technology. The company has extensive industry experience, participates in standards formulation, and possesses leading core technologies.

The narrowing scissor gap between power and grid investment is expected to accelerate grid investment. State Grid Corporation and Southern Power Grid plan to invest over RMB 3 trillion during the 14th Five-Year Plan period. Sieyuan Electric's Q1 2023 revenue and net profit showed strong growth, indicating a promising full-year outlook.

Sieyuan Electric demonstrated strong growth in Q1 2023, with revenue reaching RMB 2.172 billion, a YoY growth of 24.88%, and net profit of RMB 218 million, a YoY growth of 43.54%. In 2022, the company achieved operating revenue of RMB 10.537 billion, a YoY growth of 21.18%. Switches and related products accounted for 48% of revenue, reaching RMB 5.035 billion, a YoY growth of 25.33%. Coils and related...