WTECL(SH:600157) Shanxi Securities·2025-05-18 10:45Investment Rating - The report maintains an "Accumulate-A" investment rating for the company [4][10]. Core Views - The company's performance has been impacted by rising coal and electricity prices, but the Haizetang project is progressing steadily [4][10]. - The coal production and sales remain stable, although the selling price per ton has decreased due to market conditions, leading to a decline in gross profit margin [6][10]. - The integration of coal and electricity businesses is showing positive effects on overall performance, with the electricity segment's gross margin improving [7][10]. Financial Performance Summary - In 2024, the company achieved total revenue of 28.36 billion yuan, a year-on-year decrease of 5.85%, and a net profit attributable to shareholders of 1.56 billion yuan, down 31.12% [5][12]. - For Q1 2025, total revenue was 5.64 billion yuan, a decline of 22.96%, with a net profit of 51 million yuan, down 89.06% [5][12]. - The average selling price of coal decreased significantly, with a gross profit per ton of coal dropping to 114.53 yuan, a year-on-year decline of 77.91% [6][10]. Project Development and Strategic Initiatives - The Haizetang coal mine and new energy transition projects are progressing, with plans for significant construction milestones in 2025 and 2026 [8][10]. - The company aims to enhance its position in the energy storage industry, with ongoing projects expected to contribute to its growth [8][10]. - A stock repurchase plan of 500 million to 1 billion yuan is underway, with a commitment to increase shareholder returns through dividends and share buybacks [9][10]. Earnings Forecast and Valuation - The expected earnings per share (EPS) for 2025-2027 are projected to be 0.05, 0.08, and 0.09 yuan, respectively, with corresponding price-to-earnings (PE) ratios of 26.0, 18.1, and 15.2 times [10][12]. - The company is focused on a growth strategy that emphasizes both organic and external growth, while also prioritizing reasonable returns for shareholders [10][12].