Wencan(SH:603348) Minsheng Securities·2024-04-26 03:30Investment Rating - The report maintains a "Recommended" rating for the company, indicating a positive outlook for future performance [10]. Core Insights - The company reported a significant improvement in Q1 2024 performance, with revenue reaching 1.48 billion yuan, a year-on-year increase of 16.3% and a quarter-on-quarter increase of 15.5%. The net profit attributable to the parent company was 60 million yuan, showing substantial growth compared to previous periods [10]. - The company is a key supplier for major clients such as Huawei's Seres and Li Auto, benefiting from the ramp-up of new models and projects, which is expected to drive revenue growth [10]. - The company has made breakthroughs in integrated die-casting technology, securing multiple contracts for large integrated structural components, which are set to begin mass production in the latter half of 2024 [10]. - The forecast for revenue from 2023 to 2026 is projected to grow from 7.65 billion yuan to 11.51 billion yuan, with net profit increasing from 417 million yuan to 757 million yuan [10]. Financial Summary - Revenue for 2023 was 5.10 billion yuan, with a decline of 2.4% year-on-year. The net profit attributable to the parent company was 50 million yuan, down 78.8% year-on-year. However, projections for 2024 show a significant recovery with expected revenue of 7.65 billion yuan and net profit of 417 million yuan [2][10]. - The company's earnings per share (EPS) is expected to rise from 0.19 yuan in 2023 to 1.58 yuan in 2024, reflecting a strong recovery trajectory [2][10]. - The price-to-earnings (PE) ratio is projected to decrease from 134 in 2023 to 16 in 2024, indicating improved valuation as earnings grow [2][10].