WTECL(SH:600157) China Securities·2025-12-03 07:35Investment Rating - The report maintains a "Buy" rating for the company, indicating a potential relative price increase of over 15% [16]. Core Insights - The company has announced a share buyback plan with a total amount between 300 million to 500 million RMB, aimed at reducing registered capital by canceling the repurchased shares [2][3]. - The company has been included in the CSI A500 Index, which is expected to enhance its visibility and attract more investments from index funds [3][8]. - The construction of the Haizetang coal mine is progressing steadily, with expectations to begin trial production in July 2026, which is anticipated to significantly improve the company's operational performance [3][9]. Summary by Sections Share Buyback Plan - The company plans to repurchase shares at a maximum price of 2.5 RMB per share, with the buyback period lasting 12 months from the approval date by the shareholders [2][3]. - The estimated number of shares to be repurchased ranges from 120 million to 200 million, accounting for approximately 0.55% to 0.92% of the total share capital [3]. Index Inclusion - The company has been added to the CSI A500 Index, which has a total scale of 195.401 billion RMB, and index funds related to this index are expected to rebalance around December 15, potentially leading to increased holdings in the company [3][8]. Haizetang Coal Mine Project - The Haizetang coal mine is expected to produce high-quality coal with a calorific value of over 6500 kcal and low extraction costs, projected to generate an additional annual revenue of approximately 6.5 billion RMB and a net profit of around 3 billion RMB once fully operational [9]. - The company forecasts net profits of 316 million RMB, 854 million RMB, and 1.558 billion RMB for the years 2025 to 2027, respectively, with corresponding EPS of 0.01 RMB, 0.04 RMB, and 0.07 RMB [10].