HPEC(SH:600312) Soochow Securities·2024-09-02 05:03Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company's H1 2024 performance met market expectations, with revenue growth of 5% year-on-year and a net profit increase of 60% [3] - The high-voltage segment is rapidly advancing, with a market share of 21% in the combination electrical equipment sector, solidifying the company's leading position [3] - The domestic distribution network is improving, and international market expansion is gradually progressing, with successful projects in Italy, Thailand, and Nepal [3] Financial Performance Summary - H1 2024 total revenue reached 5.042 billion yuan, with a year-on-year increase of 5%, and net profit attributable to shareholders was 534 million yuan, up 60% [3] - The gross profit margin for H1 2024 was 23.53%, while the net profit margin was 10.58%, reflecting improvements in operational efficiency [3] - The company forecasts net profits of 1.258 billion yuan, 1.610 billion yuan, and 1.921 billion yuan for 2024, 2025, and 2026, respectively, indicating growth rates of 54%, 28%, and 19% [4] Revenue and Profit Forecast - Total revenue is projected to grow from 11.077 billion yuan in 2023 to 17.330 billion yuan in 2026, with a compound annual growth rate (CAGR) of approximately 19.44% [2] - The earnings per share (EPS) is expected to increase from 0.60 yuan in 2023 to 1.42 yuan in 2026, reflecting a strong upward trend in profitability [2] Market Data - The company's closing price is 18.38 yuan, with a market capitalization of approximately 24.94 billion yuan [6] - The price-to-earnings (P/E) ratio is currently at 30.57, projected to decrease to 12.99 by 2026, indicating an attractive valuation as earnings grow [10]