WOER(SZ:002130) Huaan Securities·2025-09-30 09:06Investment Rating - The report assigns a "Buy" rating for the company [1] Core Views - The report highlights that the company is a leading player in the global high-speed copper cable market, benefiting from the AI era and the increasing demand for copper interconnect solutions [4][5] - The company has shown steady revenue growth, with total revenue expected to rise from 41 billion yuan in 2020 to 69 billion yuan in 2024, representing a CAGR of 14% [4][34] - The company is positioned to capture significant market share in the high-speed copper cable sector, with an anticipated global market growth from 1.9 billion yuan in 2025 to 4.9 billion yuan in 2029, reflecting a CAGR of approximately 27% [5][50] Summary by Sections Company Overview - Shenzhen Wole Cable Co., Ltd. was established in 1998 and listed on the Shenzhen Stock Exchange in 2007, focusing on electronic materials, communication cables, power, new energy vehicles, and wind power [4][14] - The company has a stable shareholding structure and multiple subsidiaries that work collaboratively [28] Business Segments - The electronic materials segment, including heat shrink materials, is the largest revenue contributor, accounting for 32% of total revenue in 2025H1 [36] - The communication cable segment is experiencing rapid growth, with a revenue share of 32% in 2025H1, driven by the demand for high-speed copper interconnects [36][27] - The new energy vehicle segment is projected to grow significantly, with a market size expected to increase from 50.8 billion yuan in 2025 to 97.1 billion yuan in 2029, achieving a CAGR of 18% [22] Financial Performance - The company forecasts revenues of 86.1 billion yuan, 118.7 billion yuan, and 146.1 billion yuan for 2025, 2026, and 2027 respectively, with corresponding net profits of 12.8 billion yuan, 18.7 billion yuan, and 25.5 billion yuan [7][9] - The gross margin is expected to improve from 31.7% in 2024 to 36.4% in 2027, indicating enhanced profitability [9] Market Trends - The report emphasizes the increasing demand for copper interconnect solutions driven by the AI computing boom, with significant growth in the high-speed copper cable market anticipated [5][50] - The global high-speed copper cable market is expected to grow rapidly, with a projected increase from 1.2 billion yuan in 2024 to 4.9 billion yuan in 2029 [50] Product Development and Capacity - The company has made significant advancements in product development, including the launch of 224G single-channel high-speed copper cables and the initiation of 800G multi-channel production [6] - The company plans to enhance its production capacity significantly by acquiring additional advanced equipment by 2026 [6]