WTECL(SH:600157) Orient Securities·2024-08-09 05:31Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 1.32 CNY per share [2][4]. Core Views - The company is expected to achieve net profits of 2.8 billion, 3.8 billion, and 5.8 billion CNY for the years 2025 to 2027, respectively, driven by ongoing resource development projects [1]. - The approval of a 5 billion CNY syndicated loan for the Hai Zetan coal mine project is anticipated to accelerate its construction and production timeline, potentially generating an additional revenue of approximately 9 billion CNY and a net profit of around 4.4 billion CNY once operational [1]. - The acquisition of a 51.0095% stake in Tianyue Coal Industry is expected to enhance the quality of the company's coking coal assets and create operational synergies, increasing coking coal reserves by 28.36 million tons and annual production capacity by 600,000 tons [1]. Financial Forecasts - The company is projected to achieve net profits of 2.77 billion, 3.03 billion, and 3.29 billion CNY for the years 2024 to 2026, with earnings per share of 0.12, 0.14, and 0.15 CNY, respectively [2][6]. - Revenue is expected to grow from 30.52 billion CNY in 2024 to 31.93 billion CNY in 2026, with a compound annual growth rate of approximately 2.4% [6][2]. - The gross margin is forecasted to improve from 29.9% in 2024 to 32.5% in 2026, indicating enhanced operational efficiency [6][2].