HPEC(SH:600312) Soochow Securities·2024-04-23 18:00Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company reported a strong Q1 performance with revenue of 2.044 billion yuan, a year-on-year increase of 4%, and a net profit attributable to shareholders of 230 million yuan, up 53% year-on-year, exceeding market expectations [2][3] - The high-voltage segment has a robust order backlog, with significant project deliveries driving profit growth. The company expects to deliver a majority of its high-margin products in 2024, supported by the National Grid's planned projects [3] - The company has made breakthroughs in the European distribution market, with a 34% year-on-year increase in high-voltage switch exports. Successful bids for projects in Italy mark entry into the high-end EU market [3] - Operating expenses have increased, but the order backlog remains stable, with a cash flow from operations of 90 million yuan in Q1 [3] Financial Forecast and Valuation - The company is projected to achieve net profits of 1.204 billion yuan, 1.481 billion yuan, and 1.745 billion yuan for 2024, 2025, and 2026 respectively, representing year-on-year growth rates of 48%, 23%, and 18% [3] - The current price corresponds to a P/E ratio of 17x for 2024, 14x for 2025, and 12x for 2026 [3]