Wetown Electric(688226) 民生证券·2025-02-26 08:23Investment Rating - The report maintains a "Recommended" rating for the company [4][6]. Core Viewpoints - The company reported a revenue of 3.481 billion yuan for 2024, a year-on-year increase of 22.23%, but a net profit attributable to shareholders of 95 million yuan, a decrease of 21.16% year-on-year, indicating short-term pressure on performance due to intensified competition in the photovoltaic industry and declining prices in the supply chain [1]. - The company has accelerated its globalization efforts by forming partnerships with several overseas firms, including a joint venture with ABB to enhance competitiveness in low-voltage bus products in China [2]. - There is a significant increase in demand for computing power, with global data center capacity expected to grow from 49 GW in 2023 to 96 GW by 2026, leading to a projected compound annual growth rate (CAGR) of 25% from 2023 to 2026 [3]. Summary by Relevant Sections Financial Performance - In 2024, the company achieved a revenue of 3.481 billion yuan, with a growth rate of 22.23%. The net profit attributable to shareholders was 95 million yuan, reflecting a decline of 21.16% year-on-year. The fourth quarter of 2024 saw a revenue of 736 million yuan, down 12.40% year-on-year and 17.60% quarter-on-quarter [1][5]. - Forecasted revenues for 2025 and 2026 are 4.972 billion yuan and 6.579 billion yuan, respectively, with corresponding net profits of 204 million yuan and 335 million yuan [4][5]. Market Opportunities - The report highlights that the busway solution is expected to become the mainstream power distribution solution in data centers due to its advantages over traditional cable and cabinet solutions, including higher cost-effectiveness and lower operational costs [3]. - The company is well-positioned to benefit from the increasing demand for computing power and the rising penetration rate of busway solutions in the market [3]. Strategic Developments - The company has made significant strides in international collaboration, including partnerships with Westinghouse Electric and Japanese firms, which are expected to enhance its market presence in various regions [2]. - The joint venture with ABB aims to leverage both companies' strengths to improve the competitiveness of low-voltage bus products in China [2].