HPEC(600312) Haitong Securities·2024-10-22 09:12Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [2][8] Core Views - The company achieved a revenue of 7.885 billion yuan in the first three quarters of 2024, representing a year-on-year increase of 5.88%, while the net profit attributable to the parent company reached 857 million yuan, up 55.13% year-on-year [5][6] - The growth in performance is attributed to steady increases in grid investment, ongoing construction of the grid, and the delivery of key projects [5][6] - The company is expected to benefit significantly from the ongoing construction of ultra-high voltage and main grid projects, which are accelerating due to national energy policies [6][8] Summary by Relevant Sections Financial Performance - In Q3 2024, the company reported a revenue of 2.843 billion yuan, an increase of 8.42% year-on-year, with a net profit of 323 million yuan, up 47.72% year-on-year [6][9] - The comprehensive gross margin for Q3 2024 was 25.58%, an increase of 4.16 percentage points year-on-year [6][9] - The company’s expense ratio for the first three quarters of 2024 was 12.52%, an increase of 1.60 percentage points year-on-year [6][9] Future Outlook - The company is projected to achieve a net profit of 1.2 billion yuan in 2024, with an expected EPS of 0.88 yuan [7][11] - The anticipated growth in net profit for 2024-2026 is 47.1%, 32.4%, and 20.3% respectively [7][11] - The company is expected to maintain a PE ratio of 25-30X, with a target price range of 22-26.4 yuan [8][11] Industry Context - The ongoing construction of ultra-high voltage projects is expected to drive the company's high-voltage switch business and overall performance growth [8][11] - Recent policies from the National Development and Reform Commission and the National Energy Administration are set to accelerate the development of distribution networks, which will further benefit the company [8][11]