Wujin Stainless(603878) Guotai Junan Securities·2024-03-24 16:00Group 1 - Investment Rating: The report initiates coverage with a "Buy" rating [3][20] - Target Price: The target price is set at 10.56 CNY, with the current price at 7.91 CNY [3][20] - Financial Summary: The company is projected to achieve net profits of 353 million, 493 million, and 581 million CNY for 2023, 2024, and 2025 respectively, with corresponding EPS of 0.63, 0.88, and 1.04 CNY [28][11] Group 2 - Core Business: The company is a leading player in the domestic stainless steel pipe industry, focusing on high-end pipe materials [15][58] - Revenue Growth: The company has shown steady revenue growth, with total revenue expected to reach 3,421 million CNY in 2023, up 21% from 2022 [2][37] - High-End Product Demand: The company is successfully replacing imports in the nuclear power and high-end boiler pipe sectors, indicating strong future growth potential [14][33] Group 3 - Seamless and Welded Pipes: Seamless pipes and welded pipes constitute the main revenue sources, contributing 68.38% and 26.26% to total revenue in 2022 respectively [35][36] - Market Trends: The report highlights a robust demand for boiler pipes driven by high investment in thermal power and the replacement of outdated equipment [39][46] - Chemical Industry Growth: The chemical industry is experiencing sustained capital expenditure growth, which is expected to positively impact the demand for stainless steel pipes [49][52]