Hexing(603556) 国海证券·2024-10-24 07:30Investment Rating - The report maintains a "Buy" rating for the company [1][5][8] Core Views - The company has shown a revenue growth of 19% year-on-year, reaching 3.4 billion yuan in the first three quarters of 2024, with a net profit attributable to shareholders of 790 million yuan, up 18% year-on-year [2][4] - The sales gross margin improved by 6.1 percentage points year-on-year to 49.4% in Q3 2024, attributed to an increase in overseas revenue [2][4] - Domestic orders for electric meters are robust, with expected revenue from two major networks projected to reach 1.11 billion yuan in 2024, a 39% increase year-on-year [4] - The overseas market remains promising, with a 12.2% year-on-year increase in electric meter exports, particularly in Asia and Africa, which have high growth potential [4] Summary by Sections Financial Performance - For Q3 2024, the company reported revenue of 1.15 billion yuan, a 16% increase year-on-year but a 15% decrease quarter-on-quarter [2] - The net profit for Q3 2024 was 260 million yuan, an 11% increase year-on-year but a 19% decrease quarter-on-quarter [2] - The company expects revenue growth of 20%, 18%, and 19% for 2024, 2025, and 2026, respectively, with net profits projected to grow by 24%, 19%, and 19% in the same years [4][6] Market Position - The company is positioned as a leading exporter of electric meters, with a strong focus on overseas markets, particularly in regions with low penetration rates [4] - The current stock price is 40.34 yuan, with a market capitalization of approximately 19.71 billion yuan [3][8] Valuation Metrics - The report provides earnings per share (EPS) estimates of 2.49 yuan for 2024, 2.98 yuan for 2025, and 3.56 yuan for 2026, with corresponding price-to-earnings (P/E) ratios of 16.19, 13.55, and 11.34 [6][8]