WLY(SZ:000858) SINOLINK SECURITIES·2025-08-28 02:06Investment Rating - The report maintains a "Buy" rating for the company, expecting a price increase of over 15% in the next 6-12 months [5]. Core Views - The company reported a revenue of 52.77 billion yuan for the first half of 2025, a year-on-year increase of 4.2%, with a net profit attributable to shareholders of 19.49 billion yuan, up 2.3% year-on-year [2]. - The product structure continues to optimize with a stable market share for the main brand, and the mid-to-low price segment is experiencing significant growth [3]. - The company has implemented a vertical management system by consolidating its regions, which has positively impacted revenue growth across different areas [3]. Revenue and Profit Analysis - In the first half of 2025, the company achieved revenues of 41.0 billion yuan from its main product and 8.12 billion yuan from other products, with respective year-on-year growth rates of 4.6% and 2.7% [3]. - The sales volume for the main product increased by 12.7%, while the average price per ton decreased by 7.2%, leading to a slight decline in gross margin [3]. - The net profit margin for Q2 2025 decreased by 2.4 percentage points to 29.3%, attributed to changes in gross margin and sales expense ratios [4]. Forecast and Valuation - Revenue is projected to grow by 0.3%, 4.2%, and 5.5% for the years 2025, 2026, and 2027, respectively, while net profit is expected to decline by 3.3% in 2025 before recovering in subsequent years [5]. - The earnings per share (EPS) are forecasted to be 7.94 yuan, 8.32 yuan, and 8.88 yuan for the years 2025, 2026, and 2027, respectively [5]. - The current price-to-earnings (P/E) ratio is estimated at 16.0, 15.2, and 14.3 for the years 2025, 2026, and 2027 [5].