WHEE(SH:600475) Huafu Securities·2024-09-01 12:02Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 20% relative to the market benchmark within the next six months [7]. Core Views - The company's equipment and EPC business are under short-term pressure, but operational assets provide a stable foundation for its fundamentals [1][2]. - The company reported a revenue of 5.758 billion yuan in the first half of 2024, a year-on-year increase of 15.30%, while the net profit attributable to shareholders was 397 million yuan, a decrease of 3.02% [1]. - The operational revenue from thermal power and photovoltaic projects reached 2.746 billion yuan, a significant year-on-year growth of 55.06% [1]. Summary by Sections Financial Performance - In 1H24, the company achieved a revenue of 5.758 billion yuan, with a net profit of 397 million yuan, and a non-recurring net profit of 203 million yuan, reflecting a year-on-year decrease of 47.08% [1]. - The gross margin for the main business in 1H24 was 14.39%, down 4.25 percentage points year-on-year due to intense market competition and fluctuations in photovoltaic component prices [1]. Operational Assets - The operational revenue from thermal power and photovoltaic projects was 2.746 billion yuan, with a gross margin of 17.51%, slightly lower than the same period in 2023 [1]. - The company has a controllable thermal power generation capacity of nearly 1.3 GW, with a year-on-year increase of 49.76% in centralized heating [1]. Future Outlook - The company has secured orders for hydrogen production equipment and is preparing for market promotion of flexible coal-fired power plant modifications [2]. - Revenue forecasts for 2024-2026 are adjusted to 11.438 billion yuan, 12.785 billion yuan, and 14.035 billion yuan respectively, with net profits projected at 752 million yuan, 884 million yuan, and 994 million yuan [2].