WBTL(SH:603596) Great Wall Securities·2024-09-04 09:08Investment Rating - The report maintains a "Buy" rating for the company, expecting a price increase of 15% or more relative to the industry index within the next six months [14]. Core Insights - The company achieved a revenue of 3.971 billion yuan in 1H24, representing a year-on-year growth of 28.3%, with a net profit of 457 million yuan, also up by 28.7% [1]. - In 2Q24, the company reported a revenue of 2.111 billion yuan, with year-on-year and quarter-on-quarter increases of 32.4% and 13.5%, respectively [2]. - The gross margin for 1H24 was 21.1%, with a slight decrease of 1.0 percentage points year-on-year, while 2Q24 saw a recovery to 21.4% [3]. - The company is focusing on expanding its product offerings and production capacity, with significant new projects and production lines underway [7]. Financial Performance - The company’s revenue is projected to reach 9.756 billion yuan in 2024, with a corresponding net profit of 1.151 billion yuan, reflecting a growth rate of 30.5% and 29.1% year-on-year, respectively [1][7]. - The report indicates a steady increase in earnings per share (EPS), projected to be 1.90 yuan in 2024, up from 1.47 yuan in 2023 [9]. - The return on equity (ROE) is expected to improve from 15.0% in 2023 to 16.8% in 2024 [9]. Revenue Breakdown - In 1H24, the company’s sales volume for key products included 2 million sets of intelligent electronic control systems, 1.4 million sets of disc brakes, and 613 million lightweight components, showing significant year-on-year growth [2]. - The company has successfully launched multiple new production lines, including 23 new mass production projects for disc brakes and 36 for lightweight components [2]. Profitability Analysis - The company’s net profit margin for 1H24 was 10.6%, with a slight increase from the previous year, indicating improved profitability [3]. - The report highlights a significant improvement in the profitability of the company's subsidiaries, with net profit margins of 9.4% for electronic control systems and 8.8% for steering systems [3]. Expansion Plans - The company plans to raise up to 2.832 billion yuan through convertible bonds to fund various projects, including the production of electronic mechanical brakes and lightweight components [7]. - The ongoing construction of new production lines in Mexico and domestic facilities is expected to enhance the company’s production capacity significantly [7].