Hexing(SH:603556) Soochow Securities·2025-04-23 06:23Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company's 2024 annual report indicates that exchange rate losses significantly impacted performance, resulting in results slightly below market expectations [8] - The company achieved a total revenue of 4.72 billion yuan in 2024, representing a year-on-year growth of 12.3%, while the net profit attributable to shareholders was 1 billion yuan, reflecting a year-on-year increase of 2% [8] - The report highlights robust growth in the Asia, Africa, and Latin America electricity markets, with overseas distribution business poised for expansion [8] - Domestic distribution revenue grew by 20.61% year-on-year, with expectations for continued stable growth in the domestic electricity business [8] - The report notes that personnel expansion led to increased expenses, and exchange rate losses had a significant impact on profits, with plans to mitigate future currency fluctuations [8] Summary by Sections Financial Performance - Total revenue for 2024 is projected at 4.72 billion yuan, with a year-on-year growth of 12.3% [1] - Net profit attributable to shareholders is expected to be 1 billion yuan, with a year-on-year increase of 2% [1] - The company’s gross margin is reported at 43.9%, with a slight year-on-year increase of 2 percentage points [8] Market Outlook - The overseas market generated revenue of 3.06 billion yuan in 2024, with a year-on-year growth of 10% [8] - The domestic distribution market is expected to maintain a growth rate of 10-15% [8] - The company plans to leverage its overseas factories and branches to enhance its market presence [8] Cost and Expenses - Total expenses for 2024 are projected at 880 million yuan, reflecting a year-on-year increase of 54% [8] - The company added 489 employees, contributing to the rise in expenses [8] - Financial expenses included an exchange loss of approximately 129 million yuan, significantly affecting profits [8] Profit Forecast - The forecast for net profit attributable to shareholders for 2025 and 2026 is adjusted to 1.20 billion yuan and 1.38 billion yuan, respectively [8] - The expected net profit for 2027 is projected at 1.59 billion yuan, with year-on-year growth rates of 20%, 15%, and 15% for the respective years [8]