HPEC(SH:600312) Huaxin Securities·2024-06-28 07:00Investment Rating - The report assigns a "Buy" investment rating for Pinggao Electric (600312.SH) [2][8] Core Insights - The company is focused on high-voltage and ultra-high-voltage direct and alternating current switchgear, with a strong market position and a significant increase in new contracts by 44.2% year-on-year in 2023 [5][6] - The high-voltage business has shown steady growth, achieving revenue of 6.156 billion yuan in 2023, representing a year-on-year increase of 23.67% [6] - The ongoing electricity reform in China is expected to accelerate the construction of distribution networks, which will benefit the company due to its leading position in distribution network products [7] Summary by Sections Company Overview - Pinggao Electric specializes in high-voltage, ultra-high-voltage, and special high-voltage switchgear, having developed several high-end products including the world's first 550 kV high-speed circuit breaker and the first ±800 kV DC high-speed switch in China [5] Financial Performance - The company reported a revenue of 11.077 billion yuan in 2023, with a projected revenue of 13.228 billion yuan in 2024, reflecting a growth rate of 19.4% [9] - The net profit attributable to shareholders is expected to grow from 816 million yuan in 2023 to 1.090 billion yuan in 2024, indicating a growth rate of 33.6% [10] Market Position - The company maintains a leading market share in ultra-high voltage and distribution network segments across 14 provinces, with a notable increase in contract values in 17 provinces [6] - The report highlights the company's competitive advantages in high-voltage and ultra-high-voltage sectors, anticipating continued growth in revenue and earnings per share (EPS) from 0.80 yuan in 2024 to 1.27 yuan in 2026 [8][10]