Wencan(603348) 天风证券·2024-08-21 09:10Investment Rating - The report maintains a "Buy" rating for the company, with a target price indicating a potential upside of 10%-20% over the next six months [5]. Core Insights - The company reported a significant increase in profit for the first half of 2024, with a revenue of 3.076 billion yuan, up 20.07% year-on-year, and a net profit attributable to shareholders of 82 million yuan, up 488.19% year-on-year [1][2]. - The growth in revenue is primarily driven by strong demand from electric vehicle customers, leading to an increase in the proportion of body structure parts and integrated castings in the revenue mix [2][3]. - The company is enhancing its production capabilities by launching a new generation of efficient production platforms for large castings to meet customer demand [3]. Financial Performance Summary - For 24H1, the company achieved a gross margin of 13.94%, which is an increase of 1.80 percentage points year-on-year, while the net margin was 1.24%, up 0.36 percentage points year-on-year [1]. - The company’s operating expenses (excluding R&D) increased to 8.80% of revenue, with sales, management, and financial expense ratios at 1.42%, 4.72%, and 2.66% respectively [1]. - The forecast for net profit attributable to shareholders has been adjusted downwards for 2024-2026, now projected at 241 million yuan, 460 million yuan, and 619 million yuan respectively, reflecting the impact of ramping up overseas production capacity [3][4]. Revenue and Growth Projections - The company expects to generate revenues of 6.887 billion yuan in 2024, with a growth rate of 35%, followed by 8.609 billion yuan in 2025 and 9.900 billion yuan in 2026 [4][9]. - The projected net profit growth rates for the next three years are 378.07% for 2024, 90.78% for 2025, and 34.57% for 2026 [9]. Market Position and Strategy - The company is strengthening its relationships with high-quality customers and has secured multiple contracts for new products, indicating a robust order book and future revenue streams [3]. - The establishment of a new production facility in Chongqing aims to enhance supply capabilities and meet increasing customer demands in the electric vehicle sector [3].