Hexing(SH:603556) Shenwan Hongyuan Securities·2025-08-20 09:13Investment Rating - The report maintains an "Outperform" rating for the company [2] Core Views - The company's performance in the first half of 2025 showed a revenue of 1.924 billion yuan, a year-on-year decrease of 14.67%, and a net profit of 396 million yuan, down 25.74% year-on-year, primarily due to project delays in the domestic market, fluctuations in demand from certain overseas countries, and increased expenses from proactive counter-cyclical investments [7][10] - The company is actively expanding its smart power distribution business both domestically and internationally, with significant achievements in Africa and other regions, including the launch of a new version of its "Orca" platform, enhancing its competitive edge in the smart grid sector [10] - The company has a strong commitment to shareholder returns, having distributed a total cash dividend of 338 million yuan in 2024 and initiating a share buyback plan of 100 to 200 million yuan [10] Financial Data and Profit Forecast - The company is projected to achieve total revenue of 5.021 billion yuan in 2025, with a year-on-year growth rate of 6.4%, and a net profit of 870 million yuan, reflecting a decrease of 13.1% [9] - The earnings per share (EPS) is expected to be 1.79 yuan in 2025, with a gross margin of 43.9% and a return on equity (ROE) of 10.9% [9] - The company's price-to-earnings (PE) ratio for 2025 is estimated at 16 times, with a historical PE (TTM) of 15.69 times, indicating a favorable valuation compared to historical levels [10]