Hexing(SH:603556) Great Wall Securities·2025-05-09 07:26Investment 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 [5][18]. Core Views - The company is experiencing short-term pressure on profitability, with a focus on deepening its localization strategy in overseas power distribution and utilization businesses [1][2]. - The company is positioned as a leading enterprise in the smart power distribution and utilization sector in China, benefiting from strong first-mover advantages and channel resources in overseas markets [10]. Financial Performance Summary - For 2024, the company is projected to achieve revenue of 47.17 billion yuan, a year-on-year increase of 12.30%, and a net profit of 10.02 billion yuan, reflecting a growth of 2.00% [1]. - The company's revenue is expected to grow from 53.75 billion yuan in 2025 to 69.10 billion yuan by 2027, with corresponding net profits increasing from 12.00 billion yuan to 15.87 billion yuan during the same period [10]. - The company's gross margin for 2024 is projected at 43.95%, a year-on-year increase of 2.05 percentage points, while the net margin is expected to be 21.25%, a decrease of 2.14 percentage points [2]. Business Segment Summary - The overseas power distribution and utilization business achieved revenue of 29.40 billion yuan in 2024, a year-on-year increase of 9.77%, with a focus on localizing operations in Europe, Latin America, and Africa [3]. - The domestic power distribution business reported a revenue of 15.95 billion yuan in 2024, a year-on-year increase of 20.61%, with significant success in winning bids from major state-owned enterprises [9]. - The company's renewable energy business faced challenges, with a revenue of 1.43 billion yuan in 2024, a decrease of 12.32% year-on-year, primarily due to industry supply-demand mismatches [9].