WST(SH:688122) China Post Securities·2025-05-15 12:25Investment Rating - The report maintains a "Buy" rating for the company, expecting a relative price increase of over 20% compared to the benchmark index within the next 6 to 10 months [12]. Core Insights - The company reported a revenue of 46.12 billion yuan for 2024, a year-on-year increase of 11%, and a net profit of 8.01 billion yuan, up 6% year-on-year. In Q1 2025, revenue reached 10.74 billion yuan, reflecting a 35% year-on-year growth, with net profit increasing by 54% to 1.70 billion yuan [4][5]. - The demand for superconducting products and titanium alloys continues to grow, contributing to steady revenue growth in 2024. Superconducting product revenue increased by 32.41% year-on-year, while titanium alloy revenue grew by 9.87% [5]. - The company has a significant supply advantage in superconducting products, benefiting from increased demand in medical, controlled nuclear fusion, and other fields [7]. - The company maintains a strong market position in titanium alloy products within the aerospace sector, with successful applications in helicopters, drones, and commercial aircraft [8]. - The production capacity for high-temperature alloys has been enhanced, with new processing lines established, further solidifying the company's industry position [8]. Financial Summary - For 2024, the company achieved a gross margin of 33.55%, an increase of 1.68 percentage points year-on-year. The gross margin for superconducting products was 30.22%, while titanium alloy products saw a gross margin of 38.67% [6]. - The company forecasts net profits of 10.07 billion yuan, 12.30 billion yuan, and 14.27 billion yuan for 2025, 2026, and 2027, respectively, with corresponding P/E ratios of 32, 26, and 22 times [8][10].