HPEC(SH:600312) Guolian Securities·2024-04-25 15:30Investment Rating - The report maintains a "Buy" rating for the company with a target price of 19 CNY, based on a 24x PE for 2024 [7][8]. Core Insights - The company reported a continuous growth in Q1 2024, achieving a revenue of 2.044 billion CNY, a year-on-year increase of 4.47%, and a net profit attributable to shareholders of 230 million CNY, up 52.69% year-on-year [4][5]. - The company has shown significant improvement in operational efficiency, with a gross margin of 25.22%, an increase of 4.44 percentage points year-on-year, and a net profit margin of 12.64%, up 3.72 percentage points year-on-year [5]. - The company has a strong order acquisition capability in the ultra-high voltage sector, with a stable growth in orders and contributions from overseas business [6]. Financial Performance Summary - The company’s projected revenues for 2024-2026 are 12.824 billion CNY, 15.636 billion CNY, and 18.891 billion CNY, with year-on-year growth rates of 15.77%, 21.93%, and 20.82% respectively [7][8]. - The net profit attributable to shareholders is expected to be 1.072 billion CNY, 1.483 billion CNY, and 1.915 billion CNY for the same period, with growth rates of 31.48%, 38.28%, and 29.16% respectively [7][8]. - The earnings per share (EPS) are projected to be 0.79 CNY, 1.09 CNY, and 1.41 CNY for 2024, 2025, and 2026, respectively, indicating a 3-year CAGR of 32.91% [7][8].