Hopewind(SH:603063) Southwest Securities·2024-08-29 07:32Investment Rating - The report maintains a "Buy" rating for Hewei Electric (603063) with a target price of 16.05 CNY over the next six months [1][5]. Core Views - The company reported a revenue of 1.38 billion CNY for H1 2024, a year-on-year decrease of 10.3%, and a net profit attributable to shareholders of 150 million CNY, down 23.6% year-on-year [1]. - The gross margin has continued to rise, with a significant increase in R&D investment, which reached a rate of 11.7% in H1 2024, up 3.8 percentage points year-on-year [1]. - The renewable energy business saw a substantial increase in gross margin, while the engineering transmission sector is expected to develop steadily due to high product barriers [1][4]. Summary by Sections Financial Performance - In H1 2024, Hewei Electric achieved a revenue of 1.38 billion CNY, with a net profit of 150 million CNY, reflecting a decline of 10.3% and 23.6% respectively compared to the previous year [1]. - The gross margin for H1 2024 was 38.6%, an increase of 5.2 percentage points year-on-year, while the net profit margin was 12.5%, a slight decrease of 0.7 percentage points [1]. Business Segments - The renewable energy control business generated 1.05 billion CNY in revenue, down 12.2% year-on-year, but the gross margin improved to 35.7%, up 8 percentage points [1]. - The engineering transmission business reported revenue of 200 million CNY, down 5.1% year-on-year, with a gross margin of 39.5%, a decrease of 5.5 percentage points [1]. Growth Prospects - The hydrogen energy business is expected to become a new growth driver, with the company providing large-capacity IGBT hydrogen production power products and integrated solutions [1]. - Revenue forecasts for 2024-2026 are projected at 4.02 billion CNY, 4.86 billion CNY, and 6.06 billion CNY respectively, with net profits of 472 million CNY, 619 million CNY, and 816 million CNY [2][4]. Valuation - The report assigns a PE ratio of 15 for 2024, leading to a target price of 16.05 CNY, reflecting the company's strong position in the wind power inverter market and its rapid development in solar storage inverters [5][6].