WST(SH:688122) Orient Securities·2024-09-02 03:23Investment Rating - The report maintains a "Buy" rating for the company with a target price of 44.40 CNY [5][3] Core Insights - The company reported a revenue of 2.02 billion CNY for H1 2024, a decrease of 4.33% year-on-year, and a net profit of 348 million CNY, down 17.24% [2] - In Q2 2024, the company achieved a revenue of 1.23 billion CNY, reflecting a quarter-on-quarter growth of 54.60%, and a net profit of 238 million CNY, which is an increase of 115.38% quarter-on-quarter [2] - The titanium alloy segment has ended a two-year decline, showing signs of recovery in H1 2024, with revenue from titanium alloys at 1.28 billion CNY, down 4.07% year-on-year [2] - The superconducting products segment benefited from the ongoing growth in the nuclear fusion and magnet markets, with a revenue increase of 19.95% to 482 million CNY [2] - The high-temperature alloy revenue decreased by 44.67% to 156 million CNY, impacted by customer inventory control [2] - The company's net profit margin for H1 2024 was 17.45%, a decline of 3.00 percentage points year-on-year, attributed to increased R&D expenses [2] - The company has made significant R&D advancements, including the development of large-scale corrosion-resistant titanium alloy ingots and breakthroughs in high-temperature alloy processing technology [2] Financial Summary - The company’s revenue for 2024 is projected to be 5.49 billion CNY, with a year-on-year growth of 32.1% [4] - The net profit for 2024 is estimated at 959 million CNY, reflecting a growth of 27.5% [4] - The earnings per share (EPS) for 2024 is adjusted to 1.48 CNY, with projections for 2025 and 2026 at 1.92 CNY and 2.49 CNY respectively [3][4] - The gross margin for 2024 is expected to be 33.1%, with a net margin of 17.5% [4] - The company’s inventory as of Q2 2024 was 3.45 billion CNY, with a significant increase in finished goods [2]