WST(SH:688122) CMS·2025-05-12 11:11Investment Rating - The report maintains a "Strong Buy" rating for the company [2] Core Views - The company achieved stable revenue growth in 2024, with total revenue of 4.612 billion yuan, a year-on-year increase of 10.91%, and a net profit attributable to shareholders of 801 million yuan, up 6.44% year-on-year [5][6] - In Q1 2025, the company experienced a significant recovery with a revenue of 1.074 billion yuan, representing a year-on-year increase of 35.31%, and a net profit of 170 million yuan, up 53.85% year-on-year [5][6] - The company has shown strong performance in its superconducting business, with notable increases in revenue from superconducting materials and magnets due to heightened market demand [5][6] Financial Performance Summary - In 2024, the company reported a gross margin of 33.55%, an increase of 1.68 percentage points year-on-year, and a net profit margin of 18.99%, up 0.61 percentage points year-on-year [5][6] - The company’s revenue is projected to grow to 5.372 billion yuan in 2025, with a corresponding net profit of 936 million yuan, reflecting a year-on-year growth of 17% [6][12] - The company’s return on equity (ROE) for 2024 was 12.5%, with expectations to rise to 13.6% in 2025 [2][13] Product Performance Summary - High-end titanium alloy materials generated revenue of 2.752 billion yuan in 2024, with a gross margin of 38.67%, an increase of 4.26 percentage points year-on-year [5] - Superconducting wire revenue reached 1.304 billion yuan, up 32.41% year-on-year, although the gross margin decreased to 30.22% [5] - High-performance high-temperature alloy materials saw a revenue decline to 327 million yuan, down 31.02% year-on-year, but with a gross margin improvement to 22.25% [5] Cost Control and Profitability - The company has effectively controlled costs, with selling expenses decreasing by 8.51% and financial expenses down by 21.30% in 2024 [5] - R&D expenses increased by 6.51% to 351 million yuan, indicating a commitment to maintaining technological leadership [5] Future Earnings Forecast - The company is expected to achieve net profits of 936 million yuan in 2025, 1.077 billion yuan in 2026, and 1.223 billion yuan in 2027, with corresponding PE ratios of 35, 30, and 27 [5][6]