HPEC(SH:600312) Guohai Securities·2024-09-02 06:45Investment Rating - The investment rating for Pinggao Electric is maintained as "Buy" [1][5][7] Core Views - Pinggao Electric's performance continues to grow rapidly, benefiting from the high prosperity of domestic grid construction [1][4] - The company's revenue for H1 2024 reached 5 billion yuan, a year-on-year increase of 5%, while net profit attributable to shareholders increased by 60% to 530 million yuan [3][4] - The high voltage segment accounted for 60% of total revenue, with a gross margin of 27.6%, indicating a strong performance driven by the ongoing development of ultra-high voltage and main grid construction [4][5] Summary by Sections Financial Performance - In H1 2024, the company achieved revenue of 5 billion yuan, with a net profit of 530 million yuan, reflecting a 60% year-on-year increase [3][4] - Q2 2024 saw revenue of 3 billion yuan, a quarter-on-quarter increase of 47% and a year-on-year increase of 5% [3][4] - The gross profit margin for H1 2024 was 23.5%, up 4.3 percentage points year-on-year [3][4] Market Position and Growth Drivers - The company is positioned as a leading player in the high voltage switch market, with expectations of continued revenue growth driven by ultra-high voltage and main grid investments [4][5] - The high voltage segment's revenue share has increased, while the international segment has declined significantly, indicating a shift in focus towards domestic opportunities [4][5] - The company is enhancing its competitiveness in the distribution network business, which is expected to contribute to profit growth [4][5] Future Projections - Revenue projections for 2024-2026 are 12.3 billion, 13.9 billion, and 15.4 billion yuan, with year-on-year growth rates of 11%, 13%, and 11% respectively [5][6] - Net profit projections for the same period are 1.23 billion, 1.50 billion, and 1.73 billion yuan, with growth rates of 51%, 21%, and 16% respectively [5][6] - The current price-to-earnings ratio is projected to decrease from 20X in 2024 to 14X in 2026, indicating potential value appreciation [5][6]