HQTI(SH:688281) Orient Securities·2024-04-25 08:02Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 161.68 CNY, indicating a potential upside from the current price of 132.4 CNY [2][26]. Core Insights - The company achieved a revenue of 917 million CNY in 2023, representing a year-on-year growth of 36.45%. The net profit attributable to the parent company was 335 million CNY, showing a slight increase of 0.48% [34]. - The company is actively expanding its product offerings in the aerospace industry, particularly in advanced materials, which are expected to enhance performance and reduce weight in aircraft engines [34]. - The report highlights a significant increase in inventory and fixed assets, indicating robust order growth and investment in production capabilities [34]. Financial Performance Summary - Revenue Forecast: The company is projected to generate revenues of 1,123 million CNY in 2024, with a growth rate of 22.4% [12]. - Net Profit: The net profit attributable to the parent company is expected to reach 523 million CNY in 2024, reflecting a growth of 56.2% [12]. - Earnings Per Share (EPS): The EPS is forecasted to be 3.76 CNY in 2024, increasing to 6.74 CNY by 2026 [12]. - Profit Margins: The gross margin is expected to stabilize around 58.9% in 2024, with a net margin of 46.6% [12]. - Valuation Ratios: The price-to-earnings (P/E) ratio is projected to decrease from 55.2 in 2022 to 35.2 in 2024, indicating improving valuation metrics [12].