Xianheng International(SH:605056) Minsheng Securities·2024-04-30 12:00Investment Rating - The report maintains a "Recommended" rating for the company [6]. Core Insights - The company achieved a revenue of 2.928 billion yuan in 2023, representing a year-on-year growth of 37.87%. However, the net profit attributable to shareholders decreased by 53.29% to 970 million yuan [5][11]. - The company is focusing on deepening its presence in the power industry while leveraging its experience in the mature power grid sector to create new growth opportunities [5]. - The expansion into new fields has temporarily pressured profit margins, with a gross margin of 32.18% in 2023, down 7.38 percentage points year-on-year [5][11]. Financial Forecast Summary - Revenue is projected to grow to 3.566 billion yuan in 2024, 4.300 billion yuan in 2025, and 5.106 billion yuan in 2026, with growth rates of 21.8%, 20.6%, and 18.8% respectively [5][8]. - Net profit attributable to shareholders is expected to rebound to 272 million yuan in 2024, 344 million yuan in 2025, and 431 million yuan in 2026, with growth rates of 181.4%, 26.5%, and 25.3% respectively [5][8]. - The earnings per share (EPS) is forecasted to be 0.66 yuan in 2024, 0.84 yuan in 2025, and 1.05 yuan in 2026, with corresponding price-to-earnings (PE) ratios of 20, 16, and 13 [5][8]. Strategic Focus - The company is implementing a "Four Major Corps" strategy to enhance its market position and is expected to benefit from the increasing online procurement by state-owned enterprises [5]. - The report highlights the company's efforts to improve its understanding of new fields and increase the proportion of non-standard products, which is anticipated to enhance profit margins in the future [5].