WOLONG ELECTRIC(SH:600580) KAIYUAN SECURITIES·2024-06-19 10:00Investment Rating - The report provides a positive outlook for the company, indicating that 2024 is expected to be a pivotal year for the low-altitude economy, with the company positioned to benefit from the flying car market [2][43]. Core Insights - The company is focusing on the motor industry, leveraging both organic growth and acquisitions to diversify its business [31]. - The company has established a strong foothold in the aviation motor sector, having begun its layout in 2019 and forming strategic partnerships with key players in the industry [27][50]. - The government is promoting energy-efficient motors, which is expected to create a significant replacement cycle for equipment in 2024 [5][19]. Financial Summary - The company's revenue is projected to grow from 15,567 million in 2023 to 21,426 million by 2026, reflecting a compound annual growth rate (CAGR) of approximately 11.4% [6]. - The net profit attributable to the parent company is expected to rebound significantly from 530 million in 2023 to 1,544 million by 2026, with a notable year-on-year growth of 115.5% in 2024 [6]. - The gross margin is anticipated to remain stable, with a slight increase from 25.2% in 2023 to 25.5% in 2026 [6]. Business Growth and Market Position - The company has a diversified product range with applications across various industries, including petrochemicals, mining, and power generation [12][17]. - The industrial motor segment has shown steady growth, with revenue increasing from 50.29 billion in 2016 to 96.45 billion in 2023, indicating a strong market presence [17][70]. - The company is well-positioned to benefit from the increasing demand for energy-efficient motors, with a focus on high-efficiency products that meet government standards [68]. Strategic Partnerships and Innovations - The company has formed strategic alliances with major players like ZF Friedrichshafen to enhance its capabilities in the electric vehicle motor sector [54][82]. - The company is actively involved in the development of advanced electric propulsion systems for aviation, collaborating with organizations like COMAC [27][79]. - The report highlights the company's commitment to innovation, with ongoing research and development aimed at improving motor efficiency and reducing energy consumption [40][68].