Hexing(SH:603556) Minsheng Securities·2024-04-15 16:00Investment Rating - The report maintains a "Recommended" rating for the company [3][4]. Core Views - The company achieved record high performance in 2023, with operating revenue of 4.2 billion yuan, a year-on-year increase of 26.91%, and a net profit attributable to shareholders of 982 million yuan, up 47.9% year-on-year [1]. - The company's profitability has significantly improved, with a gross margin of 41.90% and a net margin of 23.39%, both showing year-on-year increases [1]. - The company is positioned as a global energy solutions provider, benefiting from the growth of the global smart grid market, with projected revenues of 5.25 billion, 6.57 billion, and 8.23 billion yuan for 2024, 2025, and 2026, respectively [3][12]. Summary by Sections Financial Performance - In Q4 2023, the company reported revenue of 1.33 billion yuan, a year-on-year increase of 43.84%, and a net profit of 314 million yuan, up 61.17% year-on-year [1]. - The company’s operating income for 2023 was 4.2 billion yuan, with a net profit of 982 million yuan, and a significant increase in non-recurring net profit to 941 million yuan, reflecting a growth of 60.08% [1][12]. Business Segments - The smart electricity segment generated revenue of 3.595 billion yuan, a year-on-year increase of 23.93%, driven by a significant rise in system software and solutions [2]. - The smart distribution segment achieved revenue of 406 million yuan, up 24.19%, due to new market development and project wins in Africa [2]. - The renewable energy segment saw a remarkable revenue increase of 283.50%, reaching 163 million yuan, attributed to overseas equipment advantages and domestic project wins [2]. International Expansion - The overseas market showed strong growth, with revenue reaching 2.791 billion yuan, a year-on-year increase of 51.29%, supported by the company's global supply chain strategy and local operations in Africa and Latin America [3][11]. - The company has initiated factory layout planning in Europe and Latin America, enhancing its global operational footprint [3]. Future Projections - The company forecasts revenue growth rates of 25.1% for 2024 and 2025, and 25.2% for 2026, with net profits expected to grow at rates of 24.6%, 26.0%, and 26.1% respectively [3][12].