HPEC(600312) 海通证券·2024-09-06 07:10Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [1]. Core Views - The company is expected to benefit significantly from the accelerated construction of ultra-high voltage (UHV) projects and the ongoing development of the main grid [4][6]. - In the first half of 2024, the company achieved a revenue of 5.042 billion yuan, a year-on-year increase of 4.50%, and a net profit attributable to the parent company of 534 million yuan, a year-on-year increase of 60% [3][4]. - The gross profit margin for the first half of 2024 was 23.53%, up by 4.32 percentage points year-on-year, indicating effective cost reduction and efficiency improvements [3][4]. Summary by Sections Financial Performance - In Q2 2024, the company reported a revenue of 2.998 billion yuan, a year-on-year increase of 4.53%, and a net profit of 304 million yuan, a year-on-year increase of 66.02% [4][8]. - The company’s gross profit margin for Q2 2024 was 22.37%, an increase of 4.24 percentage points year-on-year [4][8]. - The company plans to distribute a cash dividend of 1.38 yuan per 10 shares (including tax) for the first half of 2024 [3]. Cost Structure - The company’s expense ratio for the first half of 2024 was 9.43%, an increase of 0.68 percentage points year-on-year, with sales, management, and financial expense ratios all increasing, while R&D expense ratio decreased [3][4]. - Specific expense ratios included: sales expense ratio at 3.92% (up 0.34 percentage points), management expense ratio at 2.84% (up 0.24 percentage points), and R&D expense ratio at 3.20% (down 0.59 percentage points) [3][4]. Market Outlook - The company is positioned to benefit from the ongoing acceleration of UHV and main grid construction, with several UHV projects already underway [4][6]. - The National Energy Administration has outlined key projects to enhance the power system's capacity for renewable energy consumption, which is expected to drive demand for the company's products [6][7]. - The company has a leading position in ultra-high voltage technology and a complete industrial chain for switchgear, which enhances its competitive edge [6][7]. Earnings Forecast - The projected net profit for the company is expected to reach 1.25 billion yuan in 2024, 1.59 billion yuan in 2025, and 1.92 billion yuan in 2026, with corresponding EPS of 0.92 yuan, 1.17 yuan, and 1.42 yuan respectively [5][9]. - The company is assigned a PE ratio of 25-30X for 2024, leading to a reasonable price range of 23 yuan to 27.6 yuan [7].