HPEC(SH:600312) KAIYUAN SECURITIES·2025-08-21 15:12Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has a solid order backlog, with contract liabilities reaching 1.715 billion yuan as of June 2025, an increase of 517 million yuan from the end of 2024 [5] - The company reported a revenue of 5.696 billion yuan for H1 2025, representing a year-on-year growth of 13.0%, and a net profit attributable to shareholders of 666 million yuan, up 24.6% year-on-year [4][5] - The company is expected to benefit from the ongoing high investment in the power grid, with total investments from major grid companies projected to exceed 825 billion yuan in 2025 [6] Financial Performance Summary - For H1 2025, the company achieved a gross profit margin of 24.7% and a net profit margin of 12.6%, both up by 1.2 percentage points year-on-year [4] - The revenue breakdown for different segments includes high voltage at 3.264 billion yuan, medium and low voltage at 1.596 billion yuan, operation and maintenance at 634 million yuan, and international business at 167 million yuan, with respective year-on-year growth rates of 7.6%, 14.6%, 20.1%, and 288.4% [4] - The company's earnings per share (EPS) for 2025 is projected at 1.02 yuan, with corresponding price-to-earnings (P/E) ratios of 15.8, 13.0, and 11.3 for 2025, 2026, and 2027 respectively [4][7] Market Position and Opportunities - The company has secured significant contracts in the power grid market, with bids for transmission and transformation equipment amounting to 4.480 billion yuan and ultra-high voltage equipment at 461 million yuan, reflecting year-on-year increases of 49.2% and 62.6% respectively [5] - The company is expanding its international market presence, having won contracts for high voltage mobile equipment in Saudi Arabia and GIS projects in Mexico [5] - The ongoing development of the distribution network presents substantial growth opportunities for the company, as highlighted by the National Energy Administration's action plan for high-quality development from 2024 to 2027 [6]