HHI(SH:601226) GUOTAI HAITONG SECURITIES·2026-01-28 05:17Investment Rating - The investment rating for the company is "Buy" [7] Core Insights - The company has experienced a significant increase in major contracts, with a year-on-year growth of 83.8% in 2025, and a remarkable 87.1% growth in Q4 2025. This rapid growth in major contracts is expected to positively impact the company's fundamentals [2][3] - The earnings per share (EPS) estimates for 2025-2027 have been revised upwards to 0.17, 0.25, and 0.28 yuan, representing increases of 75%, 42%, and 15% respectively. The target price is set at 15 yuan, corresponding to a 60 times price-to-earnings (PE) ratio for 2026 [3] - The company has achieved its best-ever performance in overseas contracts, with successful project implementations in countries such as Indonesia, Peru, Guinea, Nigeria, and Saudi Arabia [5] Summary by Sections Major Contracts - In 2025, the total amount of major contracts announced by the company reached 12.514 billion yuan, marking an 83.8% increase from 2024. The Q4 2025 contracts alone totaled 5.472 billion yuan, reflecting an 87.1% year-on-year increase [3] - The breakdown of major contracts by business segment shows a decline in the thermal engineering segment by 17.1% to 1.401 billion yuan, while the material transportation system engineering segment surged by 571% to 6.156 billion yuan. The marine engineering segment saw a growth of 18% to 3.574 billion yuan, and hydrogen energy contracts amounted to 0.815 billion yuan, with no prior contracts in 2024 [3] Digital and Overseas Business - The company has made significant strides in offshore wind power and hydrogen energy contracts, with notable projects such as the 100 MW offshore wind project in Dandong, valued at 3.415 billion yuan, and a hydrogen production project worth 0.815 billion yuan [4] - The overseas business has achieved historical highs, with a focus on AI applications and low-altitude economy, enhancing the company's competitive edge in engineering design and project management through digital transformation [5] Financial Projections - The total revenue is projected to grow from 7.174 billion yuan in 2023 to 13.895 billion yuan in 2027, with a compound annual growth rate (CAGR) of approximately 19.7% [5] - Net profit attributable to the parent company is expected to rise from 98 million yuan in 2023 to 330 million yuan in 2027, reflecting a significant recovery and growth trajectory [5]