HPEC(600312)2024-11-18 00:16Investment Rating - The report maintains an "OUTPERFORM" rating for the company [2][12]. Core Insights - The company achieved a revenue of Rmb 7.885 billion in the first three quarters of 2024, representing a year-on-year increase of 5.88%. The net profit attributable to the parent company was Rmb 857 million, a year-on-year increase of 55.13% [6][256]. - The gross profit margin significantly increased to 24.27% in the first three quarters, up 4.29 percentage points year-on-year [6][256]. - The company is a leading supplier of GIS equipment, benefiting from the high-speed construction of the power grid, with power grid investment expected to approach Rmb 600 billion in 2024 [7][259]. - The report forecasts operating revenues for 2024-2026 to be Rmb 13.15 billion, Rmb 15.46 billion, and Rmb 17.99 billion, respectively, with corresponding net profits of Rmb 1.17 billion, Rmb 1.41 billion, and Rmb 1.67 billion [8][260]. Financial Summary - Revenue projections for the company are as follows: Rmb 11,077 million for 2023, Rmb 13,146 million for 2024, Rmb 15,462 million for 2025, and Rmb 17,985 million for 2026, with growth rates of 19%, 19%, 18%, and 16% respectively [5][254]. - Net profit is projected to grow significantly, with estimates of Rmb 816 million for 2023, Rmb 1,174 million for 2024, Rmb 1,409 million for 2025, and Rmb 1,666 million for 2026, reflecting growth rates of 285%, 44%, 20%, and 18% respectively [5][254]. - The diluted EPS is expected to increase from Rmb 0.60 in 2023 to Rmb 1.23 in 2026 [5][254].