HPEC(SH:600312) Haitong Securities·2024-05-13 01:02Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [2][8]. Core Views - The company achieved a revenue of 11.08 billion yuan in 2023, representing a year-on-year increase of 19.44%, while the net profit attributable to the parent company surged by 284.47% to 816 million yuan [5][7]. - The company is expected to benefit significantly from the accelerated construction of ultra-high voltage projects, with high voltage segment revenue reaching 6.155 billion yuan, up 23.67% year-on-year [6][8]. - The company’s overseas revenue increased by 261.10% to 724 million yuan, indicating a substantial improvement in profitability [8]. Financial Performance Summary - In 2023, the company reported a comprehensive gross margin of 21.38%, an increase of 3.79 percentage points year-on-year [5]. - The company plans to distribute a cash dividend of 2.12 yuan per 10 shares (including tax) [5]. - The company’s operating expenses ratio decreased to 10.88% in 2023, down 1.10 percentage points year-on-year [5]. Future Projections - For 2024, the company is projected to achieve a revenue of 13.088 billion yuan, with a net profit of 1.2 billion yuan, reflecting a year-on-year growth of 47.1% [7][12]. - The expected earnings per share (EPS) for 2024 is 0.88 yuan, with a projected price-to-earnings (P/E) ratio of 25-30 times, leading to a reasonable price range of 22 yuan to 26.4 yuan [8][12]. Market Trends - The ongoing development of flexible, intelligent, and digital transformation in distribution networks is anticipated to drive rapid growth in the company’s distribution business [8]. - The global investment in power grids is expected to exceed 600 billion USD by 2030, which will likely enhance the company’s international market presence [8].