HUAMING(SZ:002270) KAIYUAN SECURITIES·2024-04-12 16:00Investment Rating - The investment rating for the company is "Buy" [30][26]. Core Views - The company aims to double its net profit over the next four years based on 2023 figures, with significant breakthroughs in high-end product markets, particularly in nuclear power and industrial rectifiers [12][22]. - The company has seen a 15% year-on-year increase in operating revenue for 2023, reaching 1.961 billion yuan, and a 51% increase in net profit attributable to shareholders, totaling 542 million yuan [22][31]. - The company is actively expanding into overseas markets, including Southeast Asia, the United States, and Europe, to enhance its growth potential [12][22]. Financial Summary - The company's operating income for 2023 was 1.961 billion yuan, with a year-on-year growth of 14.6% [23]. - The net profit attributable to shareholders for 2023 was 542 million yuan, reflecting a 50.9% increase compared to the previous year [23]. - The gross margin for 2023 was 52.2%, an increase of 2.9 percentage points year-on-year, while the net margin was 27.7%, up by 6.8 percentage points [22][23]. - The company plans to achieve net profits of 706 million yuan, 871 million yuan, and 1.113 billion yuan for 2024, 2025, and 2026, respectively [22][23]. - The earnings per share (EPS) for 2023 was 0.61 yuan, with projections of 0.79 yuan, 0.97 yuan, and 1.24 yuan for the following three years [23][22]. Market Position - The company is recognized as the domestic leader and the second globally in the transformer tap switch industry, benefiting from the global transition in power systems [32]. - The company reported a 20.4% increase in revenue from transformer tap switches, reaching 1.625 billion yuan, with significant growth in both direct and indirect exports [32].