Warom Incorporated(SH:603855) ZHONGTAI SECURITIES·2024-03-28 16:00Investment Rating - The report assigns a "Buy" rating for the company, expecting a relative increase of over 15% in the next 6 to 12 months compared to the benchmark index [10][14]. Core Insights - The company's performance in 2023 exceeded expectations, with a revenue of 3.197 billion yuan, a year-on-year increase of 5.06%, and a net profit of 461 million yuan, up 28.73% year-on-year. The fourth quarter saw a significant revenue increase of 76.60% year-on-year [11][20]. - The company is expected to maintain rapid growth in 2024, with projected revenue reaching 4.079 billion yuan, a 27.6% increase, and a net profit of 545 million yuan, an 18.16% increase [20]. Financial Performance Summary - Revenue Forecasts: - 2022A: 3,043 million yuan - 2023A: 3,197 million yuan - 2024E: 4,079 million yuan - 2025E: 4,615 million yuan - 2026E: 5,290 million yuan - Year-on-year growth rates: 2023A (5%), 2024E (28%), 2025E (13%), 2026E (15%) [3]. - Net Profit Forecasts: - 2022A: 358 million yuan - 2023A: 461 million yuan - 2024E: 545 million yuan - 2025E: 628 million yuan - 2026E: 739 million yuan - Year-on-year growth rates: 2023A (29%), 2024E (18%), 2025E (15%), 2026E (18%) [3]. - Earnings Per Share (EPS): - 2022A: 1.06 yuan - 2023A: 1.37 yuan - 2024E: 1.62 yuan - 2025E: 1.86 yuan - 2026E: 2.19 yuan [3]. - Profitability Ratios: - Gross margin in 2023 was 54.19%, and net margin was 14.63%, both showing significant year-on-year improvements [20]. - Cash Flow: - The net cash flow from operating activities in 2023 was 627 million yuan, a 245.70% increase year-on-year, indicating strong operational stability [20]. Growth Drivers - The company is expected to benefit from changes in the domestic oil and gas industry's demand structure, with increased investments in downstream sectors like refining and fine chemicals [20]. - The innovative safety control system, driven by new safety regulations, is anticipated to generate significant revenue growth, with a market size exceeding 10 billion yuan [20]. - The company has established overseas operations in Europe, Central Asia, and Southeast Asia, positioning itself for future growth in international markets [20].