WTJX(BJ:830839) KAIYUAN SECURITIES·2024-04-25 15:30Investment Rating - The investment rating for the company is "Buy" (maintained) [1][2] Core Views - The company is positioned to benefit from the growth in national defense spending, with a budget of 1.67 trillion yuan for 2024, reflecting a 7.2% increase from 2023 [1] - The engineering machinery sector is entering an adjustment period, but government initiatives to accelerate infrastructure investment are expected to boost demand for engineering machinery [1] - The oil-gas spring products are gaining traction, with significant demand in heavy-duty transport vehicles and mining trucks [1][2] Financial Performance Summary - For 2023, the company achieved revenue of 669 million yuan, a 32% increase year-on-year, and a net profit of 75 million yuan, up 49% [2] - In Q1 2024, revenue reached 142 million yuan, maintaining a 32% year-on-year growth, with a gross margin of 24.69% [2] - The rapid growth of oil-gas spring products contributed to a 142.35% increase in revenue, while mechanical equipment products also saw a 41.51% increase [2] Profit Forecast - The company forecasts net profits of 99 million yuan, 123 million yuan, and 144 million yuan for 2024, 2025, and 2026 respectively, with corresponding EPS of 0.83, 1.03, and 1.21 yuan per share [2][20] - The P/E ratios for the same years are projected to be 13.4, 10.9, and 9.2 times [2][20] Industry Outlook - The defense equipment sector is expected to see significant growth during the 14th Five-Year Plan period, driven by increased military spending [1][18] - The engineering machinery industry is anticipated to recover as infrastructure investments are ramped up by the government [1][18] - The company is actively developing electric cylinders and other advanced products, positioning itself for future growth in the hydraulic industry [19]