HPEC(SH:600312)2024-06-10 05:30Investment Rating - The investment rating for Pinggao Electric is maintained at OUTPERFORM [3][9]. Core Views - The financial performance of Pinggao Electric has exceeded expectations, with a revenue of 11.077 billion yuan in 2023, representing a year-on-year growth of 19.44%, and a net profit of 816 million yuan, up 284.6% year-on-year [11][12]. - The construction of UHV (Ultra High Voltage) lines is experiencing a significant boom, with new contracts signed increasing by 44.20% year-on-year [14][15]. - The gross profit margin has shown steady improvement, reaching 21.57% in 2023, an increase of 3.79% compared to the previous year [12][13]. Financial Performance Summary - Revenue and Net Profit: In 2023, the company achieved a revenue of 11,077 million yuan and a net profit of 816 million yuan. The revenue for Q1 2024 was also 11,077 million yuan, with a net profit of 230 million yuan, up 52.69% year-on-year [11][12]. - Gross Profit Margin: The comprehensive gross profit margin for 2023 was 21.57%, with the high-voltage segment at 22.9% and the medium and low voltage distribution segment at 16.74% [12][13]. - Expense Management: The company's expenses were 1,297 million yuan in 2023, with a three-rate of 11.71%, down 0.86 percentage points year-on-year, indicating effective cost management [13][14]. Market Outlook - The UHV construction is expected to continue with "4 DC and 2 AC" projects in 2024, maintaining strong demand in the electrical equipment market [14][15]. - The revenue forecast for 2024-2026 is projected at 13.15 billion yuan, 15.46 billion yuan, and 17.99 billion yuan, respectively, with corresponding net profits of 1.17 billion yuan, 1.41 billion yuan, and 1.67 billion yuan [15]. Target Price Adjustment - The target price has been raised from 15.65 yuan per share to 20.10 yuan per share based on the DCF model [15].