Warom Incorporated(603855) 民生证券·2024-10-30 21:00Investment Rating - The report maintains a "Recommended" rating for the company, considering its competitive position in the explosion-proof electrical field [1]. Core Insights - The company's revenue for Q1-Q3 2023 reached 2.45 billion yuan, a year-on-year increase of 19.67%, with a net profit attributable to shareholders of 321 million yuan, up 6.62% year-on-year [1]. - In Q3 2024, the company achieved a revenue of 1.048 billion yuan, representing a year-on-year growth of 43.61%, and a net profit of 121 million yuan, up 14.07% year-on-year [1]. - The rapid growth in the new energy business has driven revenue and profit growth, although it has led to a decline in gross and net profit margins due to lower margins in this segment [1]. - The overseas business in explosion-proof electrical products has shown steady growth, while domestic safety intelligence business has seen significant demand, particularly in hazardous chemical parks [1]. - The global explosion-proof electrical industry is expected to grow steadily, with the market size projected to reach 8 billion USD by 2025, growing at a compound annual growth rate of 8% [1]. Financial Forecasts - The company is projected to achieve net profits attributable to shareholders of 503 million yuan in 2024, 595 million yuan in 2025, and 727 million yuan in 2026, with corresponding PE ratios of 14x, 12x, and 10x respectively [2][4]. - Revenue forecasts for the years 2024 to 2026 are 3.898 billion yuan, 4.302 billion yuan, and 4.793 billion yuan, with growth rates of 21.9%, 10.4%, and 11.4% respectively [2][4]. - The gross profit margin is expected to decline to 49.11% in 2024 and stabilize around 50.18% by 2026 [4].