Warom Incorporated(603855) 光大证券·2025-04-03 05:41Investment Rating - The report maintains a "Buy" rating for the company, indicating a strong potential for investment returns exceeding the market benchmark by over 15% in the next 6-12 months [4][6][11]. Core Insights - The company reported a revenue of 3.964 billion yuan in 2024, a year-on-year increase of 24.01%, and a net profit attributable to shareholders of 462 million yuan, a slight increase of 0.26% [1][4]. - The traditional oil and gas market in China is experiencing weak demand, but the company has made significant progress in emerging markets, particularly in the explosion-proof electrical equipment sector [2][3]. - The company is actively expanding its international market presence and focusing on the coal chemical industry in Xinjiang, which is expected to drive future demand for explosion-proof equipment [3][4]. Summary by Sections Financial Performance - In 2024, the company achieved a revenue of 3.964 billion yuan, with a growth rate of 24.01%. The net profit was 462 million yuan, reflecting a growth of 0.26% [1][5]. - The explosion-proof electrical equipment segment generated 2.506 billion yuan in revenue, a decrease of 3.5% year-on-year, while the new energy segment saw a remarkable growth of 314.7%, contributing significantly to overall revenue growth [2][5]. Market Expansion - The company is enhancing its overseas market development, with notable performance in regions outside North America. The Saudi subsidiary commenced operations in September 2024, aiming to provide localized services to major clients [3]. - Domestically, the company is focusing on the Xinjiang coal chemical sector, with projected investments of nearly 1 trillion yuan from 2025 to 2028, which is expected to boost demand for its products [3]. Profit Forecast and Valuation - The profit forecasts for 2025 and 2026 have been adjusted to 524 million yuan and 606 million yuan, respectively, with an additional forecast for 2027 at 686 million yuan. The corresponding EPS for 2025-2027 is projected to be 1.55, 1.80, and 2.03 yuan [4][5]. - The company is recognized as a global leader in explosion-proof electrical equipment, with a stable operation and significant growth potential in emerging markets and overseas expansion [4].