WST(SH:688122) Orient Securities·2025-06-05 14:45Investment Rating - The report maintains a "Buy" rating for the company with a target price of 67.20 CNY, based on a 42x PE ratio for 2025 [2][4]. Core Insights - The company has received the Anhui Provincial Science and Technology Progress Award for its key technology and engineering application results related to the EAST large scientific device, indicating strong technological capabilities [1]. - The company is expected to benefit from a recovery in downstream demand and advancements in nuclear fusion projects, which may lead to synchronized growth across its various business segments [1]. Financial Forecast and Performance - Revenue projections for 2025 and 2026 have been adjusted to 6,028 million CNY and 7,337 million CNY, respectively, reflecting a growth rate of 30.7% and 21.7% [3]. - The adjusted EPS for 2025 is forecasted at 1.60 CNY, with further increases to 1.97 CNY in 2026 and 2.41 CNY in 2027 [2][3]. - The company’s gross margin is expected to improve from 31.9% in 2023 to 35.4% by 2027, indicating enhanced profitability [3]. Business Segments and Innovations - The superconducting materials business is globally leading, with multiple projects achieving bulk supply, including superconducting wire materials for domestic nuclear fusion projects [9]. - Significant breakthroughs in high-performance high-temperature alloy technology have been achieved, enhancing the company's competitive edge in the industry [9]. - The high-end titanium alloy market is expanding, with the company developing new titanium alloy products for various sectors, including marine and nuclear industries [9].