Hexing(603556) 长城证券·2024-10-30 09:18Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 15% relative to the industry index within the next six months [15]. Core Insights - The company has demonstrated robust performance in Q3 2024, with revenue reaching 1.155 billion yuan, a year-on-year increase of 16.15%, and a net profit of 258 million yuan, up 11.45% year-on-year [1][2]. - The gross margin has reached a record high of 49.43% in Q3 2024, driven by an increasing share of high-margin overseas business [2][3]. - The company is positioned as a leading player in the smart power distribution and metering industry, benefiting from both domestic and international market growth [6]. Financial Performance Summary - For the first three quarters of 2024, the company achieved a revenue of 3.41 billion yuan, a year-on-year increase of 18.69%, and a net profit of 791 million yuan, up 18.34% year-on-year [1]. - The projected revenues for 2024 to 2026 are 5.259 billion yuan, 6.416 billion yuan, and 7.822 billion yuan, with respective growth rates of 25.21%, 21.99%, and 21.91% [6]. - The projected net profits for the same period are 1.194 billion yuan, 1.441 billion yuan, and 1.752 billion yuan, with growth rates of 21.54%, 20.67%, and 21.62% [6]. Market Dynamics - The demand for electric meters in key overseas regions remains strong, with a 10.06% year-on-year increase in exports, indicating a favorable market environment for the company [3]. - Domestic demand for smart meters is also on the rise, with a 25% year-on-year increase in the total number of smart meter tenders issued by the State Grid in 2024 [4][6].