HUAMING(SZ:002270) Huaxin Securities·2024-04-21 23:30Investment Rating - The report maintains a "Buy" rating for Huaming Equipment (002270.SZ) [1] Core Views - The company achieved a revenue of 1.961 billion yuan in 2023, representing a year-on-year growth of 14.57%, with a net profit of 542 million yuan, up 50.90% [1] - In Q1 2024, the company reported a revenue of 451 million yuan, a year-on-year increase of 9.40%, and a net profit of 127 million yuan, up 7.59% [1] - The power equipment business saw significant growth, with revenue reaching 1.625 billion yuan, accounting for 83% of total revenue, a 20.4% increase year-on-year [1] - The company is expanding its overseas market presence, with direct export revenue reaching 274 million yuan in 2023, a 79.16% increase year-on-year [1] Summary by Sections Financial Performance - In 2023, Huaming Equipment's revenue was 1.961 billion yuan, with a net profit of 542 million yuan and a gross margin of 52.23%, up 2.93 percentage points year-on-year [1] - For Q1 2024, the company reported revenue of 451 million yuan and a net profit of 127 million yuan, with the power equipment business contributing 392 million yuan, a 14.63% increase year-on-year [1] Market Expansion - The company has made significant strides in overseas markets, with the U.S. being the largest market, followed by Southeast Asia, the Middle East, Central Asia, and Africa [1] - In 2023, the company expanded its product applications, focusing on vacuum switches, which now account for over 40% of its product shipments [7] Future Projections - Revenue projections for 2024, 2025, and 2026 are 2.335 billion yuan, 2.775 billion yuan, and 3.212 billion yuan, respectively, with EPS expected to be 0.73 yuan, 0.90 yuan, and 1.07 yuan [3][7] - The report indicates a corresponding PE ratio of 27.8, 22.4, and 18.9 for the years 2024 to 2026 [7]