HPEC(SH:600312) Soochow Securities·2024-07-09 02:30Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company is expected to achieve a net profit attributable to shareholders of 520 to 540 million yuan in H1 2024, representing a year-on-year increase of 56% to 62%, exceeding market expectations [2][3] - The significant profit growth is attributed to improvements in product structure and management efficiency [3] - The company is benefiting from the accelerated construction of key projects in the domestic power grid, with a structural change in revenue driven by the delivery of high-quality orders [3] Financial Performance Summary - Total revenue is projected to grow from 11,077 million yuan in 2023 to 13,288 million yuan in 2024, reflecting a year-on-year growth of 19.96% [2] - Net profit attributable to shareholders is forecasted to increase from 815.71 million yuan in 2023 to 1,258.26 million yuan in 2024, a year-on-year growth of 54.25% [2] - The latest diluted EPS is expected to rise from 0.60 yuan in 2023 to 0.93 yuan in 2024 [2] Market Position and Outlook - The company maintains a strong market position with a 35% share in the 750kV GIS segment, benefiting from the high demand for ultra-high voltage projects [3] - The outlook for the company remains positive, with expectations of continued high growth driven by the ongoing construction of power grid projects and the delivery of environmentally friendly products [3] - The target price for the stock is set at 23.7 yuan per share, based on a 20x PE for 2025 [3]