HGPE(301261) ZHONGTAI SECURITIES·2024-04-29 11:30Investment Rating - The report maintains a "Buy" rating for the company, expecting a relative increase of over 15% in the next 6 to 12 months compared to the benchmark index [9]. Core Insights - The company has demonstrated solid performance with a revenue growth of 24.50% year-on-year in 2023, achieving a total revenue of 883 million yuan [2]. - The first quarter of 2024 saw a revenue of 243 million yuan, reflecting a year-on-year growth of 10.04% [2]. - The company possesses core competitive advantages in "high-quality continuous cast iron materials" and "one-stop service capabilities," which synergistically drive performance and profitability [2][3]. - The report highlights the company's unique production line for continuous cast iron, which is self-developed and has established a competitive edge through proprietary technology [2]. Financial Summary - Revenue projections for the company are as follows: 1,009 million yuan in 2024E, 1,305 million yuan in 2025E, and 1,521 million yuan in 2026E, indicating a compound annual growth rate (CAGR) of 29% from 2024 to 2025 [2]. - Net profit is expected to grow from 154 million yuan in 2024E to 213 million yuan in 2026E, with a net profit margin of 15.2% in 2026 [2]. - Earnings per share (EPS) are projected to increase from 1.75 yuan in 2024E to 2.42 yuan in 2026E [2]. - The report anticipates a steady improvement in the company's return on equity (ROE), rising from -8.92% in 2023 to 10.47% in 2026 [2]. Market Position and Growth Drivers - The company is positioned to benefit from the growing demand in various sectors, including semiconductor equipment, automotive components, and agricultural machinery, due to its advanced casting technology [2]. - The report emphasizes the company's ongoing development of reducer-related products, with significant technological breakthroughs achieved in key components [2]. - The continuous cast iron products are expected to expand into more applications, enhancing the company's market presence and customer loyalty [2].