Hexing(603556) 东吴证券·2024-08-20 18:00Investment Rating - The report maintains a "Buy" rating for the company [1] Core Insights - The company's revenue for the first half of 2024 increased by 20% year-on-year, with net profit rising by 22%, slightly exceeding market expectations [2] - The overseas market remains robust, with a significant increase in solution project penetration, indicating a positive trend [2] - Domestic revenue growth is strong, particularly in the southern power grid market, with a notable increase in new meter orders [2] Financial Performance Summary - For the first half of 2024, the company achieved total revenue of 2.255 billion yuan, with a net profit of 533 million yuan, and a non-recurring net profit of 524 million yuan, reflecting a year-on-year increase of 30% [2] - The gross margin and net profit margin for the first half of 2024 were 44.20% and 23.63%, respectively, showing improvements compared to the previous year [2] - The company has revised its profit forecasts for 2024-2026, expecting net profits of 1.25 billion yuan, 1.55 billion yuan, and 1.90 billion yuan, respectively, with corresponding P/E ratios of 17x, 14x, and 11x [3] Market and Operational Insights - The overseas revenue accounted for approximately 63% of total revenue in the first half of 2024, with significant growth in regions such as Africa and Asia [2] - The company has successfully initiated production in its European factory and is progressing with construction in Mexico, with plans for a new joint venture factory in Africa [2] - Domestic revenue for the first half of 2024 reached 826 million yuan, driven by meter deliveries to the State Grid [2]