HEES Latest Report

Performance of the Quarterly Report

HE Equipment Services (stock code: HEES) recorded an operating revenue of RMB384,082,000 as of December 31, 2024, a slight decrease from RMB385,806,000 as of December 31, 2023, reflecting the company's performance in the face of market challenges and competition pressure.

Key Data in the Financial Report

1. The operating revenue in 2024 was RMB384,082,000, a year-on-year decrease of 0.45%, indicating a certain pressure on the company's revenue.

2. The company's operating revenue in 2023 decreased by RMB505.9067 million from the previous year, a year-on-year decrease of 37.30%, mainly due to the fluctuation in capital expenditure of domestic communication operators and the decrease in product demand.

3. The intensified competition in the industry and macroeconomic changes have made it difficult for HE Equipment Services to attract new customers and maintain the order volume of existing customers.

Peer Comparison

1. Industry-wide analysis: The overall equipment services industry faced the dual pressures of demand fluctuations and cost increases in 2024, leading to a lack of growth in many companies' operating revenues, and the overall operating revenue growth rate slowed down, reflecting the characteristics of the mature period of the industry.

2. Peer evaluation analysis: The decrease in HE Equipment Services' operating revenue was relatively small, showing its relative stability in the industry. However, if the industry as a whole still grows, the relative weakness of HE Equipment Services will be more apparent.

Summary

HE Equipment Services' reported operating revenue in 2024 decreased year-on-year, reflecting the challenges the company faces in market competition and economic environment changes. Although the decrease was relatively small, it shows the company's competitive pressure and fragile market position compared to the industry growth trend.

Opportunities

1. With the rapid development of the new energy industry chain, HE Equipment Services can seize the opportunity for sustainable development by adjusting its product mix and market strategy.

2. The integration trend in the industry may provide opportunities for HE Equipment Services to acquire companies to enhance its market share and competitiveness.

3. The increase in infrastructure construction in the US market and the continuous growth of the equipment leasing industry may bring new business growth points for the company.

Risks

1. Intensified market competition may lead to price wars, further squeezing the company's profit margins.

2. Macroeconomic uncertainties and fluctuations in customer demand may affect the company's stable revenue.

3. A decline in internal management efficiency may make it difficult for the company to effectively respond to market changes, affecting its overall performance.