沃尔核材首次覆盖报告：奔腾不息，智连AI

Investment Rating - The report gives a "Buy" rating for Wolong Electric (002130 SZ) with a target PE of 24 71 18 55 and 15 83 for 2024 2025 and 2026 respectively [10][12] Core Views - Wolong Electric is expected to grow rapidly driven by its electronics and power products while its new energy products benefit from the high growth of the new energy vehicle market [10] - The company's subsidiary Leiting Zhilian is expected to benefit from the AI-driven copper connection industry trend potentially becoming a new growth driver [10] Business Segments Electronics - Wolong Electric is a leader in heat shrink tubing with stable growth in its electronics business In 2024H1 the electronics segment revenue reached 1 203 billion yuan up 16 85% YoY with a gross margin of 40 61% up 3 64 percentage points YoY [5][7][49] - The company's electronics products are widely used in industries such as electronics communications automotive and nuclear power [51] Power Products - The power products segment saw revenue of 619 million yuan in 2024H1 up 17 76% YoY with a gross margin of 40 67% up 0 14 percentage points YoY [7][63] - The company's power products are used in power generation distribution and transportation industries with significant growth potential in the nuclear power sector [63][69] New Energy - The new energy segment revenue reached 432 million yuan in 2024H1 up 25 83% YoY driven by the high growth of the new energy vehicle market [7][75] - The segment includes wind power and new energy vehicle products with the latter contributing significantly to revenue growth [75][79] Wire and Cable - The wire and cable segment revenue was 767 million yuan in 2024H1 up 38 27% YoY with a gross margin of 15 09% up 0 21 percentage points YoY [9][85] - Leiting Zhilian a subsidiary of Wolong Electric is expected to benefit from the AI-driven demand for high-speed communication cables [85][90] Financial Performance - Wolong Electric's revenue has grown at a CAGR of 9 52% from 2019 to 2023 with 2024Q1-Q3 revenue reaching 4 820 billion yuan up 20 13% YoY [34][36] - The company's net profit grew from 210 million yuan in 2019 to 700 million yuan in 2023 with a 36 45% YoY increase in 2024Q1-Q3 [42][44] Future Outlook - The company is expected to achieve revenues of 6 810 billion yuan 8 378 billion yuan and 9 729 billion yuan in 2024 2025 and 2026 respectively with net profits of 901 million yuan 1 199 billion yuan and 1 406 billion yuan [10] - The AI-driven copper connection industry trend is expected to drive growth in the wire and cable segment particularly for Leiting Zhilian [10][85]