WOER(SZ:002130) ZHESHANG SECURITIES·2024-06-27 00:22Investment Rating - The report gives a "Buy" rating for the company, marking it as the first coverage [51]. Core Insights - The company has established a strategic focus on "new materials and new energy," with significant growth in its electronic, power, wire, and new energy business segments. From 2019 to 2023, the company's revenue increased from 3.978 billion to 5.723 billion yuan, with a CAGR of 9.52%. The net profit attributable to the parent company rose from 210 million to 700 million yuan, achieving a CAGR of 35.21% [44][36]. Summary by Sections 1. Company Overview - The company was founded in June 1998 and has a strong presence in the domestic heat shrink materials industry, holding a significant market share. It has continuously expanded its product offerings and market reach, including electronic products used in nuclear power, automotive, and rail transportation sectors [31][49]. 2. Wire Segment - The wire segment is expected to benefit from the increasing demand for high-speed communication lines, particularly in data centers, industrial robots, and automotive applications. The company’s high-speed communication lines have achieved stable mass production, with products like 400G and 800G already in the market [20][44]. 3. Electronic Segment - The electronic segment is a market leader in heat shrink materials, with ongoing advancements in high-end applications. The company has seen a steady increase in market share in high-end sectors, including aerospace [62][49]. 4. Power Segment - The power segment is poised to benefit from increased investment in the power grid and rapid development in new energy. The company is actively expanding its high-voltage product market and developing new energy and nuclear-grade cable accessories [45][62]. 5. New Energy Segment - The new energy segment includes electric vehicle charging guns, with a market share exceeding 60% in the national standard DC charging gun sector. The company also operates three wind power plants, contributing stable cash flow [50][63]. 6. Financial Performance - The company’s revenue and net profit have shown significant growth, with Q1 2024 revenue reaching 1.389 billion yuan, a year-on-year increase of 21.62%, and net profit of 184 million yuan, up 77.27% year-on-year [36][44]. The gross profit margin has remained high, and the net profit margin has consistently improved over the years [40]. 7. Market Outlook - The global AI server market is projected to grow significantly, with the company positioned to benefit from this trend. The demand for high-speed copper cables is expected to increase, with a CAGR of 25% anticipated from 2023 to 2027 [60][22].