Dongfang Electronics(SZ:000682) Huaxin Securities·2024-06-29 10:02Investment Rating - The report initiates coverage with a "Buy" investment rating, assigning a target P/E of 17.9 and 15.1 times for the company [2][4]. Core Insights - The company is a leading player in the distribution automation sector, with a strong market share in distribution terminal products and is a core supplier for major state grids [4]. - The company has shown steady revenue growth, with a projected revenue increase from 6,478 million yuan in 2023 to 11,880 million yuan by 2026, reflecting a compound annual growth rate (CAGR) of approximately 22.7% [3][4]. - Net profit is expected to grow from 541 million yuan in 2023 to 980 million yuan in 2026, with a notable growth rate of 23.5% in 2023 and 29.9% in 2024 [3][4]. - The company is actively promoting the application of innovative technologies across multiple business areas, including dispatch automation, energy storage, and new energy sectors [4]. Financial Projections - Revenue projections for 2024, 2025, and 2026 are 7,910 million yuan, 9,683 million yuan, and 11,880 million yuan respectively, with growth rates of 22.1%, 22.4%, and 22.7% [3][4]. - The diluted earnings per share (EPS) are forecasted to increase from 0.40 yuan in 2023 to 0.73 yuan in 2026 [3][4]. - The return on equity (ROE) is expected to rise from 10.8% in 2023 to 13.4% in 2026, indicating improved profitability [3][4].