Wetown Electric(SH:688226) Minsheng Securities·2024-02-24 16:00Investment Rating - The report maintains a "Recommended" rating for the company [1][3]. Core Views - The company achieved a revenue of 2.851 billion yuan in 2023, representing a year-on-year increase of 74%, and a net profit attributable to shareholders of 120 million yuan, up 72% year-on-year [1][5]. - The growth in 2023 is attributed to increased R&D investment, product development, enhanced sales team construction, and strengthened market promotion, leading to higher sales of products such as high and low voltage busbars, photovoltaic welding strips, and energy storage systems [1][2]. - The company is expected to continue strengthening cooperation with existing customers while expanding to new clients, particularly in the photovoltaic sector, where the shipment ratio of SMBB welding strips is expected to increase [2]. - In the energy storage segment, the company aims to enhance component self-sufficiency and establish a full industry chain, which will improve its core competitiveness [2]. - The distribution equipment business, primarily focused on busbars, is expected to benefit from increased industry concentration and the company's superior product performance compared to international competitors [2]. Financial Forecasts - The company is projected to achieve revenues of 4.504 billion yuan and 6.063 billion yuan in 2024 and 2025, respectively, with net profits of 201 million yuan and 281 million yuan, corresponding to PE ratios of 11x and 8x [3][15]. - The financial indicators show a significant growth trajectory, with a net profit growth rate of 72.1% for 2023 and expected growth rates of 67.2% and 39.5% for 2024 and 2025, respectively [15][18].