WOLONG ELECTRIC(600580) 开源证券·2024-06-19 10:02Investment Rating - The report gives a "Buy" rating for the company, marking its first coverage [11]. Core Insights - The company, established in 1984, specializes in motor and control systems, achieving a global leading position in various sectors such as high-voltage drive solutions and electric motors for new energy vehicles. It is expected to benefit from dual policy incentives in 2024, including equipment replacement and the emergence of flying cars [6][12]. - The projected net profits for 2024-2026 are estimated at 1.142 billion, 1.334 billion, and 1.544 billion yuan, respectively, with corresponding P/E ratios of 15.3, 13.1, and 11.3 times [6][8]. Summary by Sections Company Overview - The company has a comprehensive product line in the motor industry, with a focus on high-efficiency and energy-saving designs. It operates 39 manufacturing plants and 4 R&D centers globally [18][39]. Financial Performance - The company's revenue has shown steady growth, increasing from 5.14 billion yuan in 2004 to 14.998 billion yuan in 2022, with a CAGR of approximately 20.6%. In 2023, revenue reached 15.567 billion yuan, a year-on-year increase of 3.8% [43][46]. - The net profit for 2023 was 530 million yuan, down 33.7% year-on-year, primarily due to investment losses [8][29]. Industrial Motor Business - The company is expected to benefit from the upcoming equipment replacement cycle in 2024, with its products leading the industry in energy efficiency. Recent government policies encourage the replacement of energy-consuming equipment [4][34]. - The industrial motor segment has shown stable growth, with revenue from this sector increasing from 50.29 billion yuan in 2016 to 96.45 billion yuan in 2023 [46][72]. Aviation Motor Sector - The year 2024 is anticipated to be a pivotal year for the low-altitude economy, with the company positioned to capitalize on the flying car market. It has established strategic partnerships and has been involved in setting aviation motor standards [13][76]. - The company is recognized as a leading enterprise in the low-altitude economy, having developed a high-power aviation electric propulsion system that has passed expert evaluation [63][81]. Future Growth Drivers - The company is expanding its EV motor and energy storage business, which is expected to become a new growth engine. It has secured substantial orders in the new energy vehicle sector, totaling approximately 8.64 billion yuan [22][83].