HPEC(600312) Soochow Securities·2024-10-22 08:00Investment Rating - The report maintains a "Buy" rating for Pinggao Electric (600312) [1] Core Views - The company's performance aligns with market expectations, with significant revenue and profit growth driven by the delivery of ultra/high voltage orders [1][2] - The company is expected to see continued high growth due to the delivery of high-margin projects and effective cost management [2] - The overall bidding process for ultra/high voltage projects is anticipated to accelerate in the second half of the year, contributing to robust order growth [2] - The company has a strong order backlog and effective cost control measures, which support steady performance growth [2] Summary by Relevant Sections Earnings Forecast and Valuation - Total revenue is projected to grow from 11,077 million in 2023A to 12,627 million in 2024E, reflecting a year-on-year increase of 13.99% [1] - Net profit attributable to shareholders is expected to rise from 1,263 million in 2024E to 1,940 million in 2026E, with a year-on-year growth of 54.83% in 2024E [1] - The latest diluted EPS is forecasted to increase from 0.60 in 2023A to 0.93 in 2024E [1] Key Financial Metrics - The company’s gross margin is expected to improve by 2-3 percentage points in 2024, supporting high-quality performance growth [2] - The operating expenses for Q1-Q3 2024 were 830 million, up 17.3% year-on-year, with a cost control strategy in place [2] - The company’s total assets are projected to grow from 20,159 million in 2023A to 24,281 million in 2024E [8] Market Data - The closing price of the stock is 19.57, with a market capitalization of approximately 26,554.95 million [5] - The price-to-earnings ratio (P/E) is projected to decrease from 32.55 in 2023A to 21.03 in 2024E [9]