HPEC(SH:600312) KAIYUAN SECURITIES·2024-04-12 16:00Investment Rating - The investment rating for Pinggao Electric is maintained as "Buy" [2][5][11] Core Views - The company achieved a significant revenue increase of 19% year-on-year, reaching 11.08 billion yuan in 2023, with a remarkable net profit growth of 284% to 816 million yuan [5][7] - The gross margin and net margin improved to 21.4% and 8.3%, respectively, reflecting enhanced profitability due to effective cost control [5][6] - The company has a strong order backlog, with new contracts signed in 2023 increasing by 44.2%, indicating potential for continued revenue growth [5][6] Financial Performance Summary - Revenue for 2023 was 11,077 million yuan, up 19.4% from 2022, with a projected revenue of 13,277 million yuan for 2024 [7][8] - Net profit for 2023 was 816 million yuan, a 284.5% increase year-on-year, with forecasts of 1,172 million yuan for 2024 [7][8] - The gross margin for 2023 was 21.4%, an increase of 3.8 percentage points, while the net margin improved to 7.4%, up 5.1 percentage points [5][7] Segment Performance - The high-voltage segment generated 6,155 million yuan in revenue, a 23.67% increase, with a gross margin of 22.90% [6] - The distribution network segment saw a slight decline in revenue to 2,909 million yuan, but the gross margin improved significantly by 5.2 percentage points [6] - International business revenue surged by 261% to 720 million yuan, achieving profitability for the first time [6] Future Outlook - The company expects to see a significant improvement in gross margins in 2024 as high-voltage and ultra-high-voltage orders are delivered [6] - Profit forecasts for 2024, 2025, and 2026 are set at 1,172 million yuan, 1,569 million yuan, and 1,731 million yuan, respectively, with corresponding EPS of 0.86, 1.16, and 1.28 yuan [5][7]