WTECL(SH:600157) GF SECURITIES·2024-08-09 10:31Investment Rating - The investment rating for the company is "Accumulate" with a target price of 1.88 CNY per share, maintaining the same rating as before [4]. Core Insights - The company has secured credit support of up to 3.5 billion CNY from Shanxi Bank and Jinshang Bank, which will help strengthen its energy business and achieve high-quality development [2]. - The company plans to expand its high-quality coking coal resources, with three coal mines expected to increase resource area by 5.2919 square kilometers, predicting a resource volume of approximately 19.75 million tons [2]. - The credit support is expected to enhance the company's ability for stock buybacks and cash dividends, optimizing its debt structure and improving overall financial management [2]. - The expansion of coking coal capacity is projected to solidify the company's core business and enhance long-term earnings elasticity, with an estimated increase in asset value of about 2.4 billion CNY and a potential profit increase of approximately 3 billion CNY [2]. - Earnings per share (EPS) forecasts for 2024-2026 are 0.12, 0.13, and 0.16 CNY respectively, indicating significant profit elasticity in the long-term coal and electricity business [2]. Financial Summary - Revenue for 2022 was 35.56 billion CNY, with a projected decline to 30.12 billion CNY in 2023, followed by a slight recovery to 31.01 billion CNY in 2024 [3]. - The net profit attributable to shareholders is expected to grow from 2.27 billion CNY in 2023 to 3.51 billion CNY in 2026, reflecting a compound annual growth rate [3]. - The company's EBITDA is projected to increase from 8.1 billion CNY in 2023 to 10.12 billion CNY in 2026, indicating improving operational efficiency [3]. - The price-to-earnings (P/E) ratio is expected to decrease from 13.43 in 2023 to 7.66 in 2026, suggesting a more attractive valuation over time [3].