HPEC(SH:600312) INDUSTRIAL SECURITIES·2024-10-17 07:10Investment Rating - The report maintains an "Accumulate" rating for the company [3][4]. Core Viewpoints - The company is a leading player in the domestic high-voltage switch market, with comprehensive product coverage and strong technological innovation. It is expected to benefit significantly from the new cycle of ultra-high voltage investment [4][5]. - The company is projected to achieve an EPS of 0.92, 1.11, and 1.35 yuan for the years 2024, 2025, and 2026 respectively, corresponding to PE ratios of 21.3, 17.6, and 14.5 times based on the closing price on October 15, 2024 [4][5]. - The company has shown continuous improvement in profitability, with new contracts, revenue, and total profit consistently increasing. It is expanding its market presence both domestically and internationally, successfully entering high-end markets in the EU [5][6]. Financial Summary - For the fiscal year 2024E, the company is expected to generate revenue of 13,794 million yuan, reflecting a year-on-year growth of 24.5%. The net profit attributable to the parent company is projected to be 1,246 million yuan, with a remarkable year-on-year growth of 52.8% [4][6]. - The gross profit margin is expected to improve from 21.4% in 2023 to 23.8% in 2024E, indicating enhanced operational efficiency [4][6]. - The return on equity (ROE) is forecasted to rise from 8.1% in 2023 to 11.5% in 2024E, showcasing the company's increasing profitability and effective capital utilization [4][6].