Hexing(SH:603556) Southwest Securities·2024-04-23 01:30Investment Rating - The report gives a "Hold" rating for the company, HaiXing Electric (603556) [8][26]. Core Insights - The company achieved a revenue of 4.2 billion yuan in 2023, representing a year-on-year growth of 26.9%. The net profit attributable to shareholders was 982 million yuan, up 47.9% year-on-year, while the non-recurring net profit was 940 million yuan, increasing by 60.1% [1][2]. - In Q4 2023, the company reported a revenue of 1.33 billion yuan, a 43.8% increase year-on-year, and a net profit of 310 million yuan, up 61.2% year-on-year [1]. - The company's new energy business saw significant growth, with revenue reaching 160 million yuan, a staggering 283.5% increase year-on-year [8][72]. - The report highlights the company's strong performance in overseas markets, particularly in Africa and Latin America, where it has secured various EPC projects [8][72]. Summary by Sections Company Overview - HaiXing Electric is a leading enterprise in the smart meter industry, focusing on energy transition with a diversified business model that includes smart electricity, smart distribution, and new energy products. The company has established a global presence, exporting to over 90 countries [30][72]. Financial Performance - The company reported a gross margin of 41.9% and a net margin of 23.4% in 2023, both showing improvements from the previous year. The Q4 margins were 24.3% and 8.2%, respectively [48]. - The smart electricity segment generated 3.6 billion yuan in revenue, growing by 23.9%, while the smart distribution segment achieved 410 million yuan, up 24.2% [48][72]. Revenue Forecast - The company expects revenues for 2024, 2025, and 2026 to be 5.38 billion yuan, 6.45 billion yuan, and 7.46 billion yuan, respectively, with net profit growth rates of 22.5%, 18.6%, and 18.2% [8][26]. Market Position - HaiXing Electric is positioned as a leading player in the domestic smart meter market, with a strong focus on expanding its overseas business and enhancing its product offerings in smart distribution and new energy sectors [8][72].