Wencan(SH:603348) ZHONGTAI SECURITIES·2024-07-15 06:00Investment Rating - The report maintains a "Buy" rating for the company, expecting a relative increase of over 15% in stock price within the next 6 to 12 months [9][13]. Core Insights - Q2 performance is expected to decline sequentially due to overseas impacts, but the domestic segment is showing improvement, benefiting from major clients like Seres and NIO [1]. - The company is entering a profit recovery phase driven by increased deliveries from key clients such as NIO and AITO, with NIO delivering 57,000 vehicles in Q2, a year-on-year increase of 140% and a quarter-on-quarter increase of 90.9% [1]. - The integrated die-casting process is revolutionizing the industry, with the company positioned as a leader in aluminum die-casting components, expected to enter a positive cycle of orders, profits, and expansion in 2024 [1]. - The company’s net profit forecasts for 2024-2026 have been adjusted to 320 million, 520 million, and 700 million yuan, respectively, with year-on-year growth rates of 536%, 63%, and 34% [1]. Summary by Sections Financial Performance - The company anticipates a net profit of 70 to 90 million yuan for the first half of 2024, representing a year-on-year increase of 403.2% to 547% [9]. - Q2 net profit is projected to be between 8 to 28 million yuan, with a midpoint of 18 million yuan, reflecting a year-on-year increase of 63.6% [9]. Revenue and Profitability Forecast - Revenue for 2024 is expected to reach 6.785 billion yuan, with a year-on-year growth rate of 33% [9]. - The company’s net profit for 2024 is forecasted at 321 million yuan, with a significant year-on-year growth rate of 536% [9]. Market Position and Strategy - The company is recognized as a leading player in aluminum die-casting, with over a decade of experience and a strong competitive edge in technology and production capabilities [1]. - The integrated die-casting market is projected to be a potential trillion-yuan market, with significant growth opportunities as the automotive industry shifts towards this technology [1].