Hexing(603556) 信达证券·2024-03-31 16:00Investment Rating - The report assigns a "Buy" rating for the company HaiXing Electric (603556.SH) [19] Core Viewpoints - The company is a global leader in smart meters, gradually expanding its smart distribution and electricity solutions. It has over 20 years of experience in the overseas smart meter market and is now diversifying into renewable energy [19][8] - The company's revenue is steadily growing, with a significant portion coming from overseas markets. In the first three quarters of 2023, the company achieved a revenue of 2.87 billion yuan, a year-on-year increase of 20.36%, and a net profit attributable to the parent company of 830 million yuan, up 25.64% year-on-year [19][8] - The report highlights the rapid growth of distributed renewable energy installations, which is driving the acceleration of smart grid development. The demand for smart meters is expected to increase significantly due to the upgrade and replacement cycles [19][8] Summary by Sections Company Overview and Development History - The company has been deeply involved in the overseas smart meter market for over 20 years and is now gradually expanding into renewable energy. Its development can be divided into three stages, starting from manufacturing mechanical meters to establishing subsidiaries in various countries [9][23] Financial Performance - The company's revenue structure was adjusted in 2022, categorizing its business into three main segments: electricity, distribution, and renewable energy. In 2022, smart electricity products accounted for 87.6% of revenue, while smart distribution products and renewable energy products accounted for 9.9% and 1.3%, respectively [28][56] - The company’s revenue grew from 2.55 billion yuan in 2018 to 2.87 billion yuan in the first three quarters of 2023, with net profit increasing from 330 million yuan to 669 million yuan during the same period [30][31] Market Trends and Opportunities - The report notes that the investment in the power grid remains high, with smart grid development being a key focus. Recent policies are expected to promote the construction of smart distribution networks, which will drive demand for smart meters [34][65] - The European Union's ten-year grid investment plan is expected to boost overseas demand for smart meters, as many countries still have low coverage of smart meters [50][19] Product and Service Ecosystem - The company offers a wide range of products, including smart energy meters, smart electricity terminals, and integrated solutions for distributed microgrids and energy management. The integration of various products into comprehensive solutions is a key part of the company's strategy [15][24][53]