WTECL(SH:600157) Orient Securities·2024-07-03 06:02Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 1.32 CNY based on a 11x PE valuation for 2024 [2][4]. Core Insights - The company's coal and electricity business remains stable, with expected net profit for 1H24 projected between 1.16 billion CNY and 1.26 billion CNY, reflecting a year-on-year growth of 14.54% to 24.41% [1]. - The Hai Zhe Tan project is progressing well, with the first phase nearing completion and the second phase underway, expected to generate additional revenue of approximately 9 billion CNY and net profit of about 4.4 billion CNY upon full capacity [1]. - The company is expanding its energy storage capabilities with a full vanadium flow battery production line, expected to capture around 10% of the domestic market share [1]. Financial Performance Summary - The company forecasts a net profit of 2.77 billion CNY for 2024, with earnings per share projected at 0.12 CNY [2]. - Revenue is expected to grow from 30.12 billion CNY in 2023 to 30.52 billion CNY in 2024, reflecting a modest increase of 1.3% [3]. - The gross margin is anticipated to improve from 27.4% in 2023 to 29.9% in 2024, indicating enhanced profitability [3].