WTJX(BJ:830839) Hua Yuan Zheng Quan·2025-01-09 13:08Investment Rating - The report gives an "Accumulate" rating for the company, marking its first coverage [5][10]. Core Viewpoints - The company, Wanto Hydraulic, is recognized as a leading enterprise in oil-gas springs and has shown significant growth potential through its electric cylinder products and planetary roller screw technology [5][7]. - In 2023, the company achieved a revenue of 669 million yuan, representing a year-on-year increase of 32%, and a net profit of 79.35 million yuan, up 25% year-on-year [5][34]. - The company has successfully expanded its overseas revenue, which reached 32.64 million yuan in the first half of 2024, marking a 62% year-on-year increase [5][37]. Summary by Sections 1. Hydraulic Cylinder "Small Giant" - Wanto Hydraulic specializes in hydraulic cylinders for dump trucks, mechanical equipment, oil-gas springs, and electric cylinders, serving various industries including automotive and engineering machinery [22][26]. - The company has established a comprehensive operational model integrating R&D, production, sales, and service [32]. 2. Oil-Gas Springs vs. Air Springs - Oil-gas springs provide better safety and damping performance compared to air springs, despite being approximately twice the cost [40]. - The market for oil-gas springs in China was around 10.4 billion yuan in 2023, with increasing demand expected due to cost reduction and market penetration [40][51]. 3. Electric Cylinders - The electric cylinder market in China was approximately 1.156 billion yuan in 2022, with significant growth potential in various sectors including industrial automation and robotics [6][40]. - The company has developed a 10T electric steering cylinder and control system, enhancing its product offerings [40]. 4. Planetary Roller Screws - Compared to ball screws, planetary roller screws offer higher load capacity and longer lifespan, with the global market expected to exceed 1.6 billion USD by 2028 [7][40]. - The domestic market share for planetary roller screw manufacturers was only 19% in 2022, indicating significant growth opportunities for the company [7][40]. 5. Profit Forecast and Valuation - The company is projected to achieve net profits of 105 million, 141 million, and 186 million yuan for 2024, 2025, and 2026, respectively, with corresponding P/E ratios of 18.5, 13.8, and 10.4 [7][10]. - The report highlights the company's competitive edge through cost reduction and efficiency improvements, particularly in its oil-gas spring business [7][11].