Hexing(603556) 民生证券·2024-08-20 03:30Investment Rating - The report maintains a "Recommend" rating for Haixing Electric (603556 SH) [2][4] Core Views - Haixing Electric's 24H1 performance met expectations with significant results from its globalization strategy [2] - The company achieved record-high revenue and net profit in 24H1, with revenue reaching 2 255 billion yuan (up 20 04% YoY) and net profit reaching 533 million yuan (up 22 0% YoY) [2] - The company's overseas revenue in 24H1 was 1 429 billion yuan (up 18% YoY), with notable growth in Africa (23% YoY) and Asia (75% YoY) [2] - Domestic revenue grew 24% YoY to 826 million yuan in 24H1, with strong performance in State Grid and Southern Grid tenders [2] Financial Performance - 24H1 gross margin and net margin were 44 20% and 23 64% respectively, up 5 75pcts and 0 39pcts YoY [2] - The company's 24-26E revenue is forecasted to be 5 253 billion, 6 484 billion, and 7 955 billion yuan, with YoY growth rates of 25 1%, 23 4%, and 22 7% respectively [2][3] - 24-26E net profit is expected to be 1 188 billion, 1 437 billion, and 1 760 billion yuan, with YoY growth rates of 20 9%, 21 0%, and 22 5% respectively [2][3] Business Development - The company successfully bid for multiple overseas projects, including a large user fee control device project in Africa and recloser products in Brazil [2] - Haixing Electric launched the new generation M2C solution "Orca Pro" overseas, accelerating product development cycles and enhancing market competitiveness [2] - The company has completed R&D for low-voltage and medium-voltage microgrids, with microgrid projects in Africa and Latin America entering the delivery phase [2] Valuation - The company's 24-26E PE ratios are 17X, 14X, and 12X based on the closing price on August 19, 2024 [2][3] - 24-26E PB ratios are forecasted at 2 8X, 2 5X, and 2 3X respectively [3]