Hopewind(SH:603063) Southwest Securities·2024-08-29 08:08Investment 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 Insights - The company reported a revenue of 1.38 billion CNY for the first half of 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 increased, while the expense ratio faced short-term pressure due to increased R&D investment, which rose to 11.7% of revenue, up 3.8 percentage points year-on-year [1][4]. - The gross margin for the new energy control business improved significantly, reaching 35.7%, an increase of 8 percentage points year-on-year, despite a revenue decline of 12.2% [1][4]. - The hydrogen energy business is expected to become a new growth driver, with the company providing large-capacity IGBT hydrogen production power products [1][4]. Financial Performance Summary - For the first half of 2024, the company achieved a gross margin of 38.6% and a net profit margin of 12.5% [1]. - The revenue forecast for 2024-2026 is projected to be 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]. - The company is positioned as a leading domestic manufacturer in the wind power converter sector, leveraging its technological advantages to accelerate domestic substitution [5][6]. Business Segment Insights - The new energy control business is expected to see a revenue growth rate of 6.4% in 2024, with a gross margin of 34.89% [4]. - The engineering transmission business is projected to grow by 10% in 2024, maintaining a gross margin of 45% [4]. - The company is collaborating with Longi to expand its hydrogen energy business, which has significant growth potential [5][6].