WST(SH:688122) Minsheng Securities·2024-11-01 04:10Investment Rating - The report maintains a "Recommended" rating for the company [4]. Core Views - The company has shown continuous rapid growth in superconducting products and steady recovery in high-end titanium alloy demand. The revenue for the first three quarters of 2024 reached 3.235 billion yuan, a year-on-year increase of 4.76%, with a net profit attributable to shareholders of 604 million yuan, up 3.62% year-on-year [2][3]. - The company is expanding its market for superconducting products, which are expected to continue growing in applications across various sectors such as semiconductors, photovoltaics, medical, and power [2]. - The high-end titanium alloy segment has maintained a solid market position, with significant progress in applications for helicopters, commercial aircraft, and gas turbines, establishing a good foundation for expanding product applications and new markets [2]. - The company has received supply qualifications for several key models of aerospace engines and gas turbine high-temperature alloy materials, with production capacity gradually increasing [2]. - The company plans to distribute a cash dividend of 1 yuan per 10 shares, reflecting confidence in its development [2]. Summary by Sections Financial Performance - For Q3 2024, the company achieved a revenue of 1.215 billion yuan, a year-on-year increase of 24.43%, and a net profit of 255 million yuan, up 58.04% year-on-year [2]. - The gross margin for the first three quarters of 2024 was 33.98%, an increase of 0.78 percentage points year-on-year, with Q3 gross margin at 37.21%, up 2.87 percentage points quarter-on-quarter [2]. - The company’s contract liabilities increased significantly by 76% year-on-year, reaching approximately 191 million yuan, driven by the rapid growth in superconducting demand [2]. Future Projections - The company is expected to see net profits attributable to shareholders of 816 million yuan, 950 million yuan, and 1.106 billion yuan for 2024, 2025, and 2026 respectively, with corresponding PE ratios of 40, 34, and 30 [3][5]. - The projected revenue growth rates for the next few years are 7.3% for 2024, 17.5% for 2025, and 18.4% for 2026 [5]. Market Position - The company holds a leading position in high-end titanium alloy rods and wires, superconducting products, and high-performance high-temperature alloys, with future growth expected as new projects come online [2].