Wencan(SH:603348) Minsheng Securities·2024-08-20 07:00Investment Rating - The report maintains a "Recommended" rating for the company, with a target price based on the closing price of 21.96 CNY per share on August 19, 2024, corresponding to a PE ratio of 27/15/11 for the years 2024-2026 [3]. Core Insights - The company reported a revenue of 3.08 billion CNY for the first half of 2024, representing a year-on-year increase of 20.1%. The net profit attributable to shareholders reached 80 million CNY, a significant increase of 488.2% year-on-year [1]. - The growth in revenue is primarily driven by the substantial increase in income from body structure components, with the French Bailian Group contributing 1.42 billion CNY, accounting for 46.1% of total revenue [1]. - The company has achieved breakthroughs in integrated die-casting, securing 14 large integrated structural component contracts from various automotive clients, including three new contracts in the first half of 2024 [1]. - The core customers, particularly those in the Huawei ecosystem, have shown significant volume increases, which is expected to drive performance improvements [1]. Financial Summary - The company forecasts revenues of 6.54 billion CNY, 8.52 billion CNY, and 10.29 billion CNY for the years 2024, 2025, and 2026, respectively, with net profits projected at 252 million CNY, 448 million CNY, and 637 million CNY for the same years [2][5]. - The earnings per share (EPS) are expected to be 0.82 CNY, 1.45 CNY, and 2.07 CNY for 2024, 2025, and 2026, respectively, with corresponding PE ratios of 27, 15, and 11 [2][5]. - The company’s financial metrics indicate a significant recovery from a net profit of 50 million CNY in 2023, with a projected growth rate of 400.4% in 2024 [2][5].