Hexing(603556) 民生证券·2024-10-24 09:00Investment Rating - The report maintains a "Recommended" rating for the company [1][3]. Core Insights - The company reported a robust revenue growth of 18.69% year-on-year for Q3 2024, reaching 34.10 billion yuan, with a net profit of 7.91 billion yuan, also up 18.34% year-on-year [1]. - The gross margin improved to 45.97% for the first three quarters of 2024, an increase of 5.84 percentage points year-on-year, indicating enhanced profitability [1]. - The global investment in green energy and smart grid technologies is projected to reach 1.3 trillion USD in 2024, with significant funding directed towards smart distribution networks [1]. - The company has successfully expanded its overseas market presence, with over 66% of its revenue coming from international sales, covering more than 100 countries [1]. - The domestic demand for smart meters continues to grow, with the State Grid's procurement of smart meters increasing by approximately 25% year-on-year [1]. Financial Forecasts - Revenue projections for 2024-2026 are 51.45 billion, 63.07 billion, and 77.39 billion yuan, with growth rates of 22.5%, 22.6%, and 22.7% respectively [2][4]. - The net profit forecasts for the same period are 12.07 billion, 14.83 billion, and 18.37 billion yuan, with growth rates of 22.8%, 22.9%, and 23.9% respectively [2][4]. - The PE ratios for 2024-2026 are projected to be 17X, 13X, and 11X, indicating a favorable valuation trend [2][4].