HST(SH:600817) HTSC·2025-11-02 07:26Investment Rating - The report maintains an "Accumulate" rating for the company with a target price of RMB 13.34 [1][8]. Core Views - The company is expected to expand its market advantage in the new energy equipment sector, driven by increased sales of new energy vehicles and strategic divestitures of non-core businesses [5][7]. - The third quarter revenue was RMB 731 million, a year-over-year decrease of 28.65%, but the net profit attributable to the parent company increased by 44.23% year-over-year, exceeding expectations due to growth in new energy equipment sales [5][6]. - The company has shifted focus to high-end new energy equipment by divesting from its environmental services and catering businesses, which is anticipated to enhance operational quality and market reach [7][8]. Financial Projections - Revenue is projected to grow from RMB 3,799 million in 2024 to RMB 4,915 million in 2027, reflecting a compound annual growth rate (CAGR) of 15.80% [4][8]. - Net profit attributable to the parent company is expected to increase from RMB 227.08 million in 2024 to RMB 352.61 million in 2027, with corresponding EPS rising from RMB 0.43 to RMB 0.66 [4][8]. - The company’s PE ratio is projected to decrease from 27.45 in 2025 to 17.68 in 2027, indicating improving valuation metrics [4][8].