Wencan(603348) 海通证券·2024-08-22 00:39Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [2][6]. Core Insights - The company reported a significant increase in revenue and net profit for the first half of 2024, with revenue reaching 3.08 billion yuan, up 20% year-on-year, and net profit of 80 million yuan, up 488% year-on-year [5]. - The growth in revenue is attributed to the launch of new models by domestic electric vehicle customers and increased orders from existing projects, with the French subsidiary contributing 1.42 billion yuan [5]. - The company has secured several key projects in the integrated body parts and structural components sectors, with production expected to start between Q1 2024 and Q3 2025 [5]. Financial Performance Summary - For the first half of 2024, the company achieved a revenue of 3.08 billion yuan, a year-on-year increase of 20%, and a net profit of 80 million yuan, reflecting a year-on-year increase of 488% [5]. - The revenue from electric vehicle products surged to 970 million yuan, a 161% increase year-on-year, with structural components contributing 670 million yuan, up 129% [5]. - The company forecasts revenues of 6.59 billion yuan, 8.42 billion yuan, and 10.07 billion yuan for 2024, 2025, and 2026 respectively, with net profits projected at 300 million yuan, 529 million yuan, and 698 million yuan for the same years [6][10]. Valuation Metrics - The company is valued at a price-to-earnings (P/E) ratio of 23-25 times for 2024, with a reasonable price range estimated between 22.73 and 24.70 yuan [6]. - The projected earnings per share (EPS) for 2024, 2025, and 2026 are 0.99 yuan, 1.72 yuan, and 2.27 yuan respectively [6][10]. - The company’s price-to-sales (P/S) ratio is expected to be 1.0 for 2024, compared to an average of 1.5 for comparable companies, indicating a reasonable valuation [6][9].