WTECL(SH:600157) KAIYUAN SECURITIES·2024-04-26 06:30Investment Rating - The investment rating for the company is "Outperform" (Maintain) [2] Core Views - The company's performance improved due to the simultaneous growth in coal and electricity sectors, with a focus on energy storage and new coal mine developments [2][4] - In 2023, the company achieved operating revenue of 30.12 billion yuan, a year-on-year decrease of 15.3%, while net profit attributable to shareholders increased by 18.7% to 2.27 billion yuan [2][4] - The company expects net profits for 2024-2026 to be 2.41 billion, 2.60 billion, and 2.71 billion yuan respectively, reflecting year-on-year growth of 6.4%, 8.0%, and 4.0% [2][4] Financial Summary - In 2023, coal production and sales improved, with raw coal production and sales increasing by 17.6% and 18.0% respectively [4] - The company’s coal business gross profit for Q1 2024 was 1.23 billion yuan, a year-on-year decrease of 27.4% due to falling market coal prices [4] - The electricity business saw significant improvement in gross profit margins, with a 17.6 percentage point increase to 10.7% in 2023 [4] Project Developments - The company is accelerating the construction of a 1,000MW all-vanadium flow battery project, with the first phase expected to be operational by Q4 2024 [4] - The company has also initiated a high-purity vanadium pentoxide production line, which is projected to capture 20% of the domestic market share upon completion [4]