WTECL(SH:600157) GF SECURITIES·2024-06-27 09:31Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 1.88 CNY per share, compared to the current price of 1.16 CNY per share [4]. Core Views - The company's Q2 performance shows a significant quarter-on-quarter increase, with a planned share buyback of 150-300 million CNY, reflecting confidence in long-term development. The expected net profit for H1 2024 is projected to be between 1.16-1.26 billion CNY, representing a year-on-year increase of 14.54%-24.41% [2]. - The coal-electricity integration ensures stable operations, with the Haizetang project progressing rapidly. The company anticipates coal production and sales to exceed 12 million tons in 2024, with a cost reduction of over 5% [2]. - The company is establishing an integrated all-vanadium flow battery energy storage industry chain, with production expected to gradually commence in Q4 2024 [2]. - The company's financing capacity is recovering, with a significant reduction in debt scale. As of the end of 2023, interest-bearing debt was 41.1 billion CNY, down from pre-restructuring levels [2]. - Earnings forecasts suggest EPS of 0.12/0.13/0.14 CNY per share for 2024-2026, with potential for increased profitability in thermal power following coal self-sufficiency [2]. Financial Summary - Revenue for 2022 was 35.56 billion CNY, with a projected decrease of 15.3% in 2023, followed by a modest recovery in 2024 [3]. - EBITDA is expected to grow from 8.1 billion CNY in 2023 to 9.97 billion CNY by 2026 [3]. - The net profit for 2023 is projected at 2.27 billion CNY, with a year-on-year growth of 18.7% [3]. - The company’s ROE is expected to improve from 4.9% in 2023 to 5.8% in 2026 [3].