Wetown Electric(SH:688226) Minsheng Securities·2024-08-27 03:38Investment Rating - The report maintains a "Recommended" rating for the company [3] Core Views - The company achieved significant year-on-year growth in its performance, with a revenue of 1.852 billion yuan in H1 2024, representing a 79.13% increase, and a net profit of 78.7734 million yuan, up 104.51% [1] - The company is expanding its overseas market presence, particularly in the energy storage sector, which saw a revenue increase of 1521% year-on-year [1] - The company is expected to continue its growth trajectory, with projected revenues of 4.32 billion yuan, 6.134 billion yuan, and 7.785 billion yuan for 2024, 2025, and 2026 respectively [2][4] Summary by Sections Financial Performance - In H1 2024, the company reported a revenue of 1.852 billion yuan, a 79.13% increase year-on-year, and a net profit of 78.7734 million yuan, up 104.51% [1] - The revenue for Q2 2024 was 1.057 billion yuan, reflecting a 75.18% year-on-year increase and a 33.00% quarter-on-quarter increase [1] - The company expects revenues of 4.32 billion yuan in 2024, with a net profit of 201 million yuan, corresponding to a PE ratio of 11x [2][4] Business Segments - The distribution equipment segment generated 731 million yuan in revenue, a 38.44% increase year-on-year, with significant growth in medium and low-voltage complete equipment and transformers [1] - The energy storage business achieved a revenue of 336 million yuan, a 1521% increase year-on-year, with successful project deliveries in various applications [1] - The photovoltaic materials segment saw a revenue of 730 million yuan, a 59.57% increase year-on-year, with an increasing share of SMBB welding strips [1] Future Outlook - The company is expected to continue its growth with projected revenues of 4.32 billion yuan, 6.134 billion yuan, and 7.785 billion yuan for 2024, 2025, and 2026 respectively, alongside net profits of 201 million yuan, 300 million yuan, and 384 million yuan [2][4] - The company is focusing on expanding its overseas market presence, particularly in energy storage, and has established partnerships with international firms [1]