Hexing(SH:603556) Huajin Securities·2026-01-07 08:27Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Insights - The company reported a revenue of 3.369 billion yuan for the first three quarters of 2025, a year-on-year decrease of 1.19%. However, the third quarter alone saw a revenue of 1.445 billion yuan, representing a year-on-year increase of 25.12% [3] - The company's net profit attributable to shareholders for the first three quarters of 2025 was 732 million yuan, down 7.48% year-on-year, but the third quarter net profit was 336 million yuan, up 30.21% year-on-year [3] - The company is experiencing a recovery in overseas electricity business and is accelerating the expansion of distribution and new energy products [3] - The company has successfully launched its smart ultrasonic water meter factory in South Africa, marking a significant step in localizing its smart water business in Africa [3] - The company has won several bids for its distribution network products across Asia, Africa, and Latin America, enhancing its collaborative development capabilities across multiple markets and product categories [3] Financial Data and Valuation - The projected revenue for 2025 is 4.953 billion yuan, with a year-on-year growth of 5.0%, and net profit is expected to be 1.049 billion yuan, reflecting a year-on-year increase of 4.7% [4] - The company’s earnings per share (EPS) for 2025 is projected to be 2.16 yuan, with a price-to-earnings (P/E) ratio of 16.5 times [4] - The gross profit margin is expected to be 45.3% in 2025, with a net profit margin of 21.2% [4] - The company’s return on equity (ROE) is projected to be 13.4% in 2025, increasing to 15.3% by 2027 [4]