WST(SH:688122) Minsheng Securities·2024-08-31 07:00Investment Rating - The report maintains a "Recommended" rating for the company, with projected net profits for 2024-2026 being 7.78 billion, 9.06 billion, and 10.59 billion respectively, corresponding to PE ratios of 30, 26, and 22 based on the stock price as of August 30 [2][3]. Core Insights - The company reported a revenue of 20.20 billion for H1 2024, a decrease of 4.33% year-on-year, with a net profit of 3.48 billion, down 17.24% year-on-year. However, Q2 2024 showed a recovery with a revenue of 12.27 billion, an increase of 54.60% quarter-on-quarter and 3.13% year-on-year [1]. - Demand for superconducting products continues to grow, with revenue from these products reaching 4.82 billion in H1 2024, an increase of 19.95% year-on-year. The company is the only domestic producer of low-temperature superconducting wire and has significantly increased its production capacity to 2000 tons [1]. - High-end titanium alloy materials showed a positive trend, with revenue of 12.84 billion in H1 2024, a slight decrease of 4.07% year-on-year, but with an improved gross margin of 36.95% [1]. - The high-performance high-temperature alloy materials segment faced challenges, with revenue dropping 44.67% year-on-year to 1.56 billion, although the gross margin improved to 21.35% [2]. Financial Summary - For 2024E, the company is projected to achieve total revenue of 4.462 billion, with a growth rate of 7.3%. The net profit is expected to be 778 million, reflecting a growth rate of 3.4% [3][8]. - The gross margin is forecasted to be 32.45% in 2024, with a net profit margin of 17.43% [8]. - The company's total assets are projected to increase from 12.084 billion in 2023 to 12.665 billion in 2024, indicating a healthy growth trajectory [9].