Willfar(SH:688100) GOLDEN SUN SECURITIES·2026-01-19 12:24Investment Rating - The report maintains a "Buy" rating for the company [3][6]. Core Views - The company's parent, Weisheng Holdings, has shown strong stock performance, driven by optimistic expectations for China's "14th Five-Year Plan" investments in the State Grid, projected to reach CNY 4 trillion, and a global AIDC wave that is leading to a revaluation of Weisheng as a scarce asset in energy management [1]. - The transition from power IoT to AIDC energy digitalization is highlighted, emphasizing the high demands for power quality and collaborative computing in AIDC, where distribution equipment acts as the "muscle" and perception and control serve as the "brain" [1]. - The company is expected to leverage its natural advantages in the intelligentization process of AIDC energy systems, with growth boundaries likely to continue expanding [3]. Financial Summary - Revenue projections for the company are as follows: CNY 2,225 million in 2023, CNY 2,745 million in 2024, CNY 3,101 million in 2025, CNY 3,718 million in 2026, and CNY 4,582 million in 2027, with year-on-year growth rates of 11.1%, 23.3%, 13.0%, 19.9%, and 23.2% respectively [5]. - The net profit attributable to the parent company is projected to be CNY 525 million in 2023, CNY 631 million in 2024, CNY 724 million in 2025, CNY 865 million in 2026, and CNY 1,046 million in 2027, with year-on-year growth rates of 31.3%, 20.1%, 14.8%, 19.6%, and 20.8% respectively [5]. - The report indicates that the current price-to-earnings (P/E) ratios are 28, 24, and 20 for the years 2025, 2026, and 2027 respectively [3]. Business Strategy - The company is positioned to benefit from group synergies, overseas expansion, and the migration of existing capabilities into new business areas, which collectively enhance growth certainty [2]. - The company has established a significant presence in overseas markets, with 19% of revenue coming from international operations in the first three quarters of 2025, and has developed local operations in Indonesia and Saudi Arabia [9]. - The report discusses the potential for the company to expand into power supply business areas, leveraging its long-term understanding of supply architecture and control logic in low and medium voltage distribution [9].