SANXING(SH:601567) Huaxin Securities·2024-02-01 16:00Investment Rating - The report assigns a "Buy" rating for the company for the first time [2]. Core Views - The company is expected to achieve a net profit attributable to shareholders of approximately 1.84 to 1.98 billion RMB in 2023, representing a year-on-year growth of 94.07% to 108.84% [2][3]. - The company is actively expanding its power distribution business overseas, securing significant contracts such as a 310 million RMB smart meter project in Brazil [2][3]. - The company is also investing in new energy projects, including the construction of a new energy box-type substation and energy storage system, with a total investment of around 4 billion RMB [3]. Summary by Sections Company Overview - The company operates in two main sectors: power distribution and medical services, with a strong focus on expanding its power distribution business internationally [2][4]. - The company has a rich experience in power distribution products and has established a comprehensive sales network across over 70 countries [3]. Financial Performance - The company forecasts revenues of 11.48 billion RMB in 2023, with a growth rate of 26.2% [5]. - The expected earnings per share (EPS) for 2023 is 1.35 RMB, with a corresponding price-to-earnings (P/E) ratio of 15.4 [5][7]. Business Segments - The power distribution segment achieved a revenue of 4.26 billion RMB in the first half of 2023, a year-on-year increase of 22.40% [2]. - The medical services segment generated a revenue of 1.27 billion RMB, reflecting a year-on-year growth of 45.36% [2]. Future Outlook - The company anticipates continued growth in both its power distribution and medical services sectors, driven by overseas demand and domestic market expansion [5]. - The company plans to enhance its rehabilitation medical services by increasing the number of hospitals and beds, further solidifying its position in the healthcare market [4].