HPEC(SH:600312) KAIYUAN SECURITIES·2024-04-25 04:00Investment Rating - The investment rating for Pinggao Electric is maintained at "Buy" [2][3] Core Views - The company reported a strong start in Q1 2024, with revenue of 2.044 billion yuan, a year-on-year increase of 4.5%, and a net profit attributable to shareholders of 230 million yuan, up 52.7% year-on-year [3] - The gross profit margin and net profit margin improved to 25.2% and 12.6%, respectively, with significant increases in net profit due to enhanced R&D and market investments [3] - The company expects to maintain high-quality growth, with projected net profits of 1.172 billion, 1.569 billion, and 1.731 billion yuan for 2024-2026, corresponding to EPS of 0.86, 1.16, and 1.28 yuan [3] Summary by Sections Financial Performance - In Q1 2024, the company achieved a revenue of 2.044 billion yuan, a 4.5% increase year-on-year, and a net profit of 230 million yuan, reflecting a 52.7% growth [3] - The gross profit margin was 25.2%, and the net profit margin was 12.6%, both showing improvements compared to the previous year [3] - The company maintained its profit forecasts for 2024-2026, expecting net profits of 1.172 billion, 1.569 billion, and 1.731 billion yuan, with corresponding EPS of 0.86, 1.16, and 1.28 yuan [3][5] Order Backlog and Market Position - The company signed new contracts in 2023, showing a year-on-year growth of 44.2%, with contract liabilities of 1.41 billion yuan as of Q1 2024, indicating a 12.6% increase from the end of 2023 [4] - The company is expected to see an increase in the proportion of high-margin products in the ultra-high voltage sector, contributing to improved profitability [4] - Pinggao Electric has successfully expanded its international business, reaching over 70 countries and regions, and has established a comprehensive overseas marketing network [4] Valuation Metrics - The current stock price is 15.44 yuan, with a market capitalization of 20.951 billion yuan [6] - The projected P/E ratios for 2024, 2025, and 2026 are 17.9, 13.4, and 12.1, respectively, indicating a favorable valuation compared to historical performance [5][6]