HPEC(SH:600312) Huaan Securities·2024-09-03 01:39Investment Rating - Investment rating: Buy (maintained) [3] Core Views - The company reported better-than-expected performance, with revenue of 5.042 billion yuan in H1 2024, a year-on-year increase of 4.5%, and a net profit attributable to shareholders of 534 million yuan, up 60% year-on-year [3][4] - The ongoing development of UHV (Ultra High Voltage) and main network construction is expected to drive further growth, with the high voltage segment achieving revenue of 3.03 billion yuan in H1 2024, a gross margin of 27.6%, and a year-on-year increase of 4.7% [3][4] - The company is actively expanding its overseas market presence, successfully entering high-end markets in the EU, with significant contracts in Italy and Spain [3][4] Financial Summary - Revenue forecast for 2024E: 13.108 billion yuan, with a year-on-year growth of 18.3% [4][7] - Net profit attributable to shareholders forecast for 2024E: 1.122 billion yuan, with a year-on-year growth of 37.5% [4][7] - Gross margin expected to remain stable at 21.4% in 2024E [4][7] - Earnings per share (EPS) forecast for 2024E: 0.83 yuan [4][7] Growth Potential - The company is positioned to benefit from the acceleration of UHV and main network construction, with projected net profits for 2024/25/26 at 1.122 billion, 1.415 billion, and 1.705 billion yuan respectively [3][4] - The company maintains a leading market position in the UHV sector, with a stable bidding volume and significant market share [3][4] Valuation Metrics - Price-to-earnings (P/E) ratios for 2024/25/26 are projected at 24, 19, and 16 times respectively [4][7] - Price-to-book (P/B) ratios for the same periods are projected at 2.42, 2.15, and 1.89 respectively [4][7] - EV/EBITDA ratios for 2024/25/26 are projected at 13.70, 10.61, and 8.21 respectively [4][7]