HHI(SH:601226) GUOTAI HAITONG SECURITIES·2026-01-28 05:45Investment 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% for the entire year of 2025, and a 87.1% increase in Q4 2025. This growth is expected to positively impact the company's fundamentals [2][3] - The earnings per share (EPS) estimates for 2025-2027 have been raised to 0.17, 0.25, and 0.28 yuan, reflecting increases of 75%, 42%, and 15% respectively compared to previous estimates [3] - The target price for the company's stock is set at 15 yuan, corresponding to a price-to-earnings (PE) ratio of 60 times for 2026 [3] Summary by Sections Major Contracts - The total amount of major contracts announced by the company in 2025 reached 12.514 billion yuan, representing an 83.8% increase from 2024. In Q4 2025, the total amount was 5.472 billion yuan, showing a year-on-year growth of 87.1% [3] - The breakdown of major contracts by business segment includes: - Thermal engineering contracts at 1.401 billion yuan, down 17.1% - Material transportation system contracts at 6.156 billion yuan, up 571% - Marine engineering contracts at 3.574 billion yuan, up 18% - Hydrogen energy contracts at 0.815 billion yuan, with no contracts reported in 2024 [3] Business Developments - The company has made significant progress in offshore wind power and hydrogen energy contracts, with notable projects including a 3.415 billion yuan contract for a 1 million kW offshore wind project and an 815 million yuan contract for a hydrogen production and green methanol integration project [4] - 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] Financial Projections - The company's total revenue is projected to grow from 7.174 billion yuan in 2023 to 13.895 billion yuan in 2027, reflecting a compound annual growth rate (CAGR) of approximately 19.7% [5] - Net profit attributable to shareholders is expected to increase from 98 million yuan in 2023 to 330 million yuan in 2027, with a significant growth rate of 75% in 2025 [5]