HPEC(600312) Soochow Securities·2024-10-22 08:03Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company's performance aligns with market expectations, with significant growth driven by the delivery of ultra/high voltage orders and improved profit margins due to cost reductions and product structure changes [1][2] - The company is expected to continue its high growth trajectory, with a projected increase in gross margin by 2-3 percentage points for the year [2] - The company has a strong order backlog and is well-positioned for stable growth, despite a slower start to the year in terms of new orders [2] Financial Performance Summary - For the first three quarters of 2024, the company achieved revenue of 7.89 billion yuan, up 5.9% year-on-year, and a net profit of 860 million yuan, up 55.1% year-on-year, with a gross margin of 24.3% [1] - The third quarter alone saw revenue of 2.84 billion yuan, an 8.4% increase year-on-year, and a net profit of 320 million yuan, a 47.7% increase year-on-year [1] - The company’s net profit forecast for 2024-2026 has been revised upwards, with expected net profits of 1.26 billion yuan, 1.64 billion yuan, and 1.94 billion yuan respectively, representing year-on-year growth rates of 55%, 30%, and 19% [2] Order and Market Outlook - The company anticipates a significant acceleration in order intake in the second half of 2024, with several key projects expected to commence [2] - The company is expanding its market presence outside its network and in the distribution market, which is expected to contribute to robust order growth for the year [2] Cost Management and Efficiency - The company has effectively controlled costs, with operating expenses for the first three quarters of 2024 amounting to 830 million yuan, a 17.3% increase year-on-year [2] - The company’s inventory and contract liabilities have increased significantly, indicating a strong pipeline of products awaiting delivery [2]