HPEC(SH:600312) Minsheng Securities·2024-09-01 12:47Investment Rating - The report maintains a "Recommended" rating for the company [2][8] Core Views - The company achieved significant growth in H1 2024, with revenue reaching 5.042 billion, a year-on-year increase of 4.5%, and net profit attributable to shareholders of 534 million, up 60% year-on-year [1] - The high-voltage switch business remains industry-leading, and the distribution network business has undergone operational transformation, leading to improved efficiency [1] - The company has strengthened its R&D efforts, focusing on the needs of new power system construction, with R&D investment reaching 128 million, a 16.48% increase year-on-year [1] - The company has maintained a stable domestic market share and successfully entered the high-end EU market, with significant growth in the production of 1100 kV and 800 kV combination electrical appliances [1] Financial Performance Summary - For H1 2024, the company reported a gross margin of 23.53%, an increase of 4.32 percentage points year-on-year, and a net profit margin of 11.41%, up 3.47 percentage points year-on-year [1] - The revenue forecast for 2024-2026 is projected to be 13.626 billion, 16.484 billion, and 19.999 billion respectively, with growth rates of 23%, 21%, and 21% [2][6] - The net profit attributable to shareholders is expected to be 1.162 billion, 1.506 billion, and 1.843 billion for the same period, with growth rates of 42.5%, 29.6%, and 22.3% respectively [2][6]