HUAMING(SZ:002270) Guoxin Securities·2025-10-30 05:55Investment Rating - The investment rating for the company is "Outperform the Market" [5][27][31] Core Views - The company has shown steady growth in the first three quarters, with a significant increase in profitability driven by a higher proportion of high-margin export business and a reduction in low-margin power engineering business [2][6][19] - The company's revenue from power equipment reached 1.535 billion yuan, up 16.51% year-on-year, with overseas revenue growing by 45.43% [2][23] - The company is expanding its overseas operations, with new facilities in Singapore and Indonesia, and has established a presence in Turkey, the US, and Brazil, indicating a strong potential for continued export growth [2][23] Summary by Sections Financial Performance - In the first three quarters, the company achieved revenue of 1.815 billion yuan, a year-on-year increase of 6.87%, and a net profit of 581 million yuan, up 17.66% [6][19] - The gross profit margin for the first three quarters was 55.44%, an increase of 5.55 percentage points year-on-year, while the net profit margin was 32.51%, up 3.14 percentage points [6][19] - For Q3, the company reported revenue of 694 million yuan, a year-on-year increase of 20.13%, and a net profit of 213 million yuan, up 18.51% [19] Revenue Breakdown - The company's revenue from power equipment business was 1.535 billion yuan in the first three quarters, with domestic revenue at 1.049 billion yuan (up 6.7%) and overseas revenue at 486 million yuan (up 45.43%) [2][23] - The export revenue from tap changers accounted for 32% of total revenue, reflecting an ongoing optimization of the revenue structure [2][23] Profit Forecast - The profit forecast for the company has been adjusted upwards, with expected net profits of 744 million yuan, 886 million yuan, and 1.037 billion yuan for 2025, 2026, and 2027 respectively [3][27] - The current stock price corresponds to a price-to-earnings ratio (PE) of 33, 27, and 23 for the years 2025, 2026, and 2027 [3][27] Valuation Metrics - The projected revenue for 2023 is 1.961 billion yuan, with a growth rate of 14.6%, and net profit is expected to reach 542 million yuan, reflecting a growth rate of 50.9% [4][29] - The company is expected to maintain a strong return on equity (ROE) of 16.2% in 2023, increasing to 26.7% by 2027 [4][29]