HPEC(SH:600312) Donghai Securities·2024-05-13 11:02Investment Rating - The report initiates coverage with a "Buy" rating for the company [3][7][25] Core Views - The company's performance has shown rapid growth, with Q1 2024 results exceeding market expectations. In 2023, the company achieved a revenue of 11.077 billion yuan, a year-on-year increase of 19.44%, and a net profit attributable to shareholders of 816 million yuan, up 284.47% year-on-year [6][12][24] - The high-voltage segment has seen a year-on-year increase in shipments, with revenue reaching 6.2 billion yuan, a 24% increase. The company has also improved its inventory management, reducing overall inventory by approximately 5.97% compared to the beginning of the period [17][19] - The company has made significant strides in international markets, achieving a revenue of 724 million yuan from international operations, a year-on-year increase of 261.10%. The company has successfully entered the EU high-end market with its medium-voltage ring network cabinet products [21][23] Summary by Sections 1. Main Points - The company has consistently achieved rapid growth in performance, with Q1 2024 results surpassing market expectations. In 2023, the company reported a revenue of 11.077 billion yuan, a 19.44% increase year-on-year, and a net profit of 816 million yuan, up 284.47% year-on-year [6][12] - The high-voltage segment's revenue reached 6.2 billion yuan in 2023, a 24% increase year-on-year, while the distribution network segment saw a slight decline in revenue [17][19] - The company has successfully expanded into international markets, with a significant increase in revenue from overseas operations [21][23] 2. Investment Recommendations - The company is positioned as a leader in high-voltage and medium-voltage equipment, with expected revenues of 13.418 billion yuan, 15.676 billion yuan, and 18.099 billion yuan for 2024, 2025, and 2026, respectively [24][25]