Hexing(603556) 国海证券·2024-04-22 06:30Investment Rating - The investment rating for the company is "Buy" (maintained) [1][6][10] Core Views - The company has shown significant growth in its overseas electricity business, with revenue and profit quality improving. In 2023, the company achieved revenue of 3.6 billion yuan from smart electricity system products, a year-on-year increase of 24%, with a gross margin of 43.9%, up by 5.1 percentage points [3][15] - The overseas market for smart electricity is expected to maintain high growth, driven by the demand for modernization in developed countries and increased penetration in emerging markets. The company is likely to enhance its revenue and profitability through an increased share of system software and solutions [3][6] - The company is focusing on expanding its overseas distribution and renewable energy businesses, which are anticipated to accelerate growth and enhance sustainability. The global investment demand for electricity networks is projected to rise significantly, indicating a positive outlook for the distribution market [6][15] Summary by Sections Financial Performance - In 2023, the company reported a revenue of 4.2 billion yuan, a year-on-year increase of 27%, and a net profit attributable to shareholders of 982 million yuan, up by 48%. The gross margin was 41.9%, an increase of 3.7 percentage points [15] - The company forecasts revenues of 5.2 billion yuan, 6.3 billion yuan, and 7.7 billion yuan for 2024, 2025, and 2026 respectively, with net profits expected to be 1.3 billion yuan, 1.5 billion yuan, and 1.9 billion yuan for the same years [6][8] Market Data - The current stock price is 49.80 yuan, with a 52-week price range of 21.00 to 51.15 yuan. The total market capitalization is approximately 24.34 billion yuan [3][6] Growth Potential - The company is expected to benefit from the global shift towards renewable energy, with projections indicating that by 2024, global renewable energy installed capacity will reach 4,500 gigawatts, surpassing coal as a major energy source [6][15]