WOTE(SZ:002886) Minsheng Securities·2024-11-01 10:30Investment Rating - The report maintains a "Recommended" rating for the company [2][4]. Core Views - The company has shown significant growth in its financial performance, with a notable turning point in Q3 2024, achieving a total revenue of 1.287 billion yuan for the first three quarters, a year-on-year increase of 16.29%, and a net profit attributable to shareholders of 25 million yuan, up 62.97% year-on-year [2]. - The supply issue of LCP raw materials has been resolved, allowing the company to enter a positive development track, with domestic suppliers achieving stable production of BP, a key raw material [2]. - Special high-performance polymer materials have become a significant revenue source, with their contribution exceeding 50% of total revenue, indicating the company's transformation into a platform-based materials company [2]. - The company is expected to benefit from the growth in downstream industries such as new energy vehicles, low-altitude economy, semiconductors, AI computing power, high-frequency communications, and robotics [2]. Financial Forecasts - For 2024-2026, the company is projected to achieve net profits of 45 million, 106 million, and 224 million yuan respectively, with corresponding PE ratios of 91, 39, and 18 times based on the closing price on October 31 [2][3]. - Revenue is expected to grow from 1.842 billion yuan in 2024 to 4.095 billion yuan in 2026, reflecting a growth rate of 19.9% in 2024 and 46.6% in 2026 [3][5]. - The company's gross profit margin is projected to improve, with a forecasted gross margin of 18.18% in 2025 [5].