Hexing(SH:603556) CHINA DRAGON SECURITIES·2024-04-24 01:00Investment Rating - The investment rating for the company is "Buy" (首次覆盖) [1] Core Views - The company achieved significant growth in 2023, with revenue reaching 4.2 billion yuan, a year-on-year increase of 27%, and a net profit attributable to shareholders of 982 million yuan, up 48% year-on-year [1] - The company's overseas revenue has rapidly increased, with a notable growth in regions such as Africa and Europe, contributing to 66.46% of total revenue [1] - The company is positioned as a leading enterprise in smart power distribution and is expected to benefit from growing domestic and international demand [1] Financial Performance Summary - In 2023, the company reported revenue of 4.2 billion yuan, with a quarterly revenue of 1.328 billion yuan in Q4, reflecting a 44% year-on-year increase [1] - The gross profit margin improved to 41.90%, an increase of 3.67 percentage points year-on-year, while the net profit margin reached 23.39%, up 3.33 percentage points year-on-year [1] - The company’s overseas revenue reached 2.791 billion yuan, a year-on-year increase of 51.29%, while domestic revenue decreased by 3.71% to 1.372 billion yuan [1][3] Business Segment Performance - The company’s smart electricity, smart distribution, and new energy businesses generated revenues of 3.595 billion yuan, 406 million yuan, and 163 million yuan, respectively, with year-on-year growth rates of 23.93%, 24.19%, and 283.50% [1] - The new energy business has seen significant project wins in Africa and Latin America, including microgrid and comprehensive energy management projects [1] Future Earnings Forecast - The company is projected to achieve net profits of 1.208 billion yuan, 1.464 billion yuan, and 1.717 billion yuan for the years 2024, 2025, and 2026, respectively, with corresponding P/E ratios of 19.9, 16.5, and 14.0 [2][3]