WST(SH:688122) Xin Lang Cai Jing·2025-09-02 02:40Core Viewpoint - The company reported strong performance in H1 2025, with revenue of 2.723 billion (YoY +34.76%) and net profit of 546 million (YoY +56.72%), driven by high demand for advanced materials [1][2] Financial Performance - H1 2025 revenue reached 2.723 billion, showing a year-over-year increase of 34.76%, while net profit was 546 million, up 56.72% YoY [1] - Q2 2025 continued the growth trend with revenue of 1.649 billion (YoY +34.40%, QoQ +53.57%) and net profit of 376 million (YoY +58.05%, QoQ +121.28%) [1] - The overall gross margin improved to 38.70%, an increase of 6.67 percentage points YoY, indicating enhanced profitability [1] - Operating expenses decreased, with a total expense ratio of 11.82%, down 2.04 percentage points YoY [1] Business Segments - Superconducting products saw revenue of 798 million in H1 2025, a significant increase of 65.75% YoY [2] - High-end titanium alloy revenue reached 1.567 billion, growing by 22.06% YoY [2] - High-performance high-temperature alloy revenue was 245 million, up 56.68% YoY, supported by product certifications and increased production capacity [2] Contract Liabilities and Cash Flow - Contract liabilities rose to 227 million, a 58.94% increase from the previous year, indicating a recovery in demand and order growth [3] - Operating cash flow improved significantly, with a net cash flow of 204 million, up 77.73% YoY, primarily due to increased sales collections [3] - Inventory levels were high at 4.16 billion, a 7.7% increase from the previous year, with work-in-progress and finished goods also rising [3] Strategic Developments - The company is strengthening its leadership in high-end materials, with advancements in titanium alloy applications and successful deliveries of large-scale corrosion-resistant titanium alloy products [4] - The superconducting business is expanding with increased orders and production capacity, including the mass production of high-performance superconducting wires [4] - High-temperature alloy production is also growing rapidly, with several key grades receiving product certifications, enhancing the company's industry position [4] Investment Outlook - The company is expected to benefit from a high demand cycle, with projected net profits of 1.007 billion, 1.253 billion, and 1.567 billion for 2025-2027, respectively [4] - Earnings per share (EPS) are forecasted to be 1.55, 1.93, and 2.41 for the same period, with corresponding price-to-earnings (PE) ratios of 37, 30, and 24 [4]