WOER(002130) Huajin Securities·2024-11-06 10:23Investment Rating - The report assigns a "Buy" rating for the company, indicating a forecasted investment return exceeding 15% over the next six months [1][3]. Core Insights - The company has demonstrated robust growth across its diversified business segments, with significant revenue increases driven by the demand for high-speed communication cables and ongoing market expansion efforts [1][3]. - For the first three quarters of 2024, the company reported a revenue of 4.82 billion yuan, a year-on-year increase of 20.13%, and a net profit of 655 million yuan, up 26.10% from the previous year [1][3]. - The company is increasing its research and development (R&D) investments, with R&D expenses reaching 256 million yuan in the first three quarters of 2024, a rise of 18.91% year-on-year, representing an R&D expense ratio of 5.32% [1][3]. Financial Performance - The company achieved a gross margin of 32.84% in the first three quarters of 2024, an increase of 0.53 percentage points year-on-year [1]. - Revenue projections for 2024-2026 are estimated at 6.96 billion yuan, 8.62 billion yuan, and 10.94 billion yuan, with year-on-year growth rates of 21.6%, 23.9%, and 26.9% respectively [3][4]. - The forecasted net profit for the same period is 956 million yuan, 1.18 billion yuan, and 1.47 billion yuan, with corresponding growth rates of 36.5%, 23.8%, and 23.9% [3][4]. Business Segments - The electronic products segment is expected to generate revenues of 2.80 billion yuan, 3.51 billion yuan, and 4.45 billion yuan from 2024 to 2026, with gross margins improving to 38.30%, 38.60%, and 38.80% respectively [6][7]. - The wire and cable segment is projected to achieve revenues of 1.43 billion yuan, 1.75 billion yuan, and 2.18 billion yuan, with gross margins of 26.20%, 25.90%, and 25.20% [6][7]. - The power products segment is anticipated to generate revenues of 1.58 billion yuan, 1.90 billion yuan, and 2.44 billion yuan, with gross margins of 45.25%, 47.17%, and 44.73% [6][7]. Market Position - The company is positioned as a leader in the domestic heat shrinkable materials market, with a strong presence in high-end markets such as nuclear power, automotive, rail transportation, and medical sectors [1][3]. - The demand for high-speed communication cables is on the rise, with the company’s subsidiary, Letin Intelligent, experiencing increased demand and operating at full capacity [1][3].