Hexing(603556)2024-10-23 03:00Investment Rating - The report maintains a "Buy" rating for the company [1][3] Core Views - The company's Q1-3 2024 revenue reached 34.1 billion yuan, a year-on-year increase of 18.7%, with a net profit attributable to the parent company of 7.9 billion yuan, up 18.3% year-on-year [2] - The gross margin for Q3 2024 was 49.4%, an increase of 6.1 percentage points year-on-year, indicating strong profitability [2] - The company has seen a significant increase in overseas project contributions, with a focus on system solutions, which are expected to maintain high gross margins [2] - Domestic demand is also strong, with the State Grid's meter replacement entering a peak period and distribution investments accelerating [2] Financial Performance Summary - Total revenue (in million yuan) is projected to grow from 4,200 in 2023 to 5,055 in 2024, reflecting a year-on-year growth of 20.34% [1][9] - Net profit attributable to the parent company is expected to rise from 982.47 million yuan in 2023 to 1,209.19 million yuan in 2024, a growth of 23.08% [1][9] - The latest diluted EPS is projected to increase from 2.01 yuan in 2023 to 2.47 yuan in 2024 [1][9] Valuation Metrics - The current price-to-earnings (P/E) ratio is 21.61, with future estimates of 17.56 for 2024, 14.12 for 2025, and 11.26 for 2026 [1][10] - The target price for 2025 is set at 61.5 yuan per share, based on a 20x P/E ratio [3]