WST(SH:688122) Tianfeng Securities·2024-09-26 10:03Investment Rating - The report maintains a "Buy" rating for the company, expecting a relative return of over 20% within the next six months [3][12]. Core Views - The company achieved a revenue of 2.02 billion yuan in H1 2024, a year-on-year decrease of 4.33%, with a net profit attributable to the parent company of 348 million yuan, down 17.24% year-on-year [1]. - Q2 2024 showed strong performance with revenue of 1.23 billion yuan, up 3.13% year-on-year and 54.6% quarter-on-quarter, and a net profit of 238 million yuan, up 11.83% year-on-year and 115.39% quarter-on-quarter [1]. - The company benefits from three main factors: successful delivery of superconducting business orders, improved titanium alloy business performance due to increased capacity utilization and lower raw material prices, and enhanced profitability in high-temperature alloy business due to significant decreases in raw material prices [1]. Financial Performance Summary - Revenue for 2024 is projected to be 4.93 billion yuan, with a growth rate of 18.58% [2]. - The net profit attributable to the parent company is expected to be 900.25 million yuan in 2024, reflecting a growth rate of 19.65% [2]. - The company’s EBITDA for 2024 is estimated at 1.29 billion yuan [2]. Business Segment Performance - The superconducting business generated 482 million yuan in revenue in H1 2024, a year-on-year increase of 19.95% [1]. - The titanium alloy business reported revenue of 1.28 billion yuan in H1 2024, a decrease of 4.07% year-on-year but a 10.03% increase compared to H2 2023 [1]. - The high-temperature alloy business achieved a gross margin of 21.35% in H1 2024, an increase of 5.49 percentage points compared to the previous year [1]. Growth Outlook - The company is expected to maintain its leading position in the new materials sector, supported by a robust R&D talent pool and advancements in superconducting motors, superconducting magnets, and high-temperature alloys [1]. - The company’s net profit forecasts for 2024, 2025, and 2026 are 900.25 million yuan, 1.10 billion yuan, and 1.31 billion yuan, respectively, with corresponding P/E ratios of 26.69, 21.75, and 18.39 [2][3].