Wanma Co., Ltd.(SZ:002276) Orient Securities·2025-05-09 04:25Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 17.28 CNY based on a 32x P/E ratio for 2025 [2][5]. Core Insights - The company is experiencing growth in traditional business segments while innovating in the robotics cable sector. The revenue from the power cable segment reached 11.75 billion CNY in 2024, marking a 32.29% year-on-year increase, with production volume hitting a historical high [9]. - The company is positioned as a leader in high polymer materials, with a revenue of 5.185 billion CNY in 2024, reflecting a 6.42% increase. The company has successfully developed ultra-high voltage cable materials that are now being used in various domestic and international projects [9]. - The robotics cable division has established a strong technical foundation, with products capable of exceeding 30 million bending cycles, showcasing international leadership in technology [9]. Financial Forecast and Analysis - The company is projected to achieve earnings per share (EPS) of 0.54 CNY, 0.69 CNY, and 0.86 CNY for the years 2025, 2026, and 2027 respectively. The previous estimates for 2025 and 2026 were 0.81 CNY and 0.97 CNY, respectively, adjusted due to overall industry pressures [2]. - Revenue is expected to grow from 15.121 billion CNY in 2023 to 25.224 billion CNY by 2027, with a compound annual growth rate (CAGR) of approximately 7.8% [4][11]. - The company's gross margin is projected to improve slightly from 11.3% in 2024 to 12.1% in 2027, while net profit margin is expected to increase from 1.9% to 3.5% over the same period [4][11]. Market Performance - The company's stock has shown strong performance, with a 52-week high of 21.21 CNY and a low of 6.13 CNY. The stock price as of May 7, 2025, was 15.78 CNY [5]. - The company has outperformed the market, with absolute performance of 82.05% over the past 12 months compared to the Shanghai and Shenzhen 300 Index [6].