HPEC(600312) KAIYUAN SECURITIES·2024-10-24 03:07Investment Rating - The investment rating for Pinggao Electric (600312.SH) is maintained at "Buy" [2][3]. Core Views - The company reported a strong performance in Q3 2024, with revenue of 28.43 billion yuan, a year-on-year increase of 8.4%, and a net profit of 3.23 billion yuan, up 47.7% year-on-year [2][3]. - The company continues to enhance its profitability, with gross and net profit margins improving to 24.3% and 11.7%, respectively, during the first three quarters of 2024 [3]. - The ongoing high demand for ultra-high voltage products and supportive policies for distribution network development are expected to drive future growth [4]. Summary by Sections Financial Performance - For the first three quarters of 2024, the company achieved a revenue of 78.85 billion yuan, representing a 5.9% year-on-year growth, and a net profit of 8.57 billion yuan, which is a 55.1% increase year-on-year [2]. - The earnings per share (EPS) for 2024-2026 are projected to be 0.86, 1.16, and 1.28 yuan, respectively, with corresponding price-to-earnings (P/E) ratios of 22.0, 16.4, and 14.9 [2]. Product Development - The company has successfully delivered high-value ultra-high voltage products, with significant improvements in quality and efficiency due to lean management practices [3]. - Notable product developments include the world's first ±408 kV DC converter switch and a 550 kV tank-type filter group circuit breaker [3]. Market Outlook - The investment in power grid projects reached 398.2 billion yuan in the first nine months of 2024, a 21.1% increase year-on-year, indicating a robust market environment [4]. - The National Energy Administration has introduced policies to accelerate the development of distribution networks, which is expected to further enhance market opportunities for the company [4].