Wetown Electric(SH:688226) Minsheng Securities·2024-04-28 03:00Investment Rating - The report maintains a "Recommended" rating for the company [12][13]. Core Views - The company's Q1 performance exceeded expectations, driven by the synergistic development of three major business segments: distribution equipment, photovoltaic materials, and energy storage [12]. - The company achieved a revenue of 2.848 billion yuan in 2023, representing a year-on-year growth of 74%, and a net profit attributable to shareholders of 120 million yuan, up 72% year-on-year [12]. - The forecast for 2024-2026 indicates revenues of 4.536 billion yuan, 6.265 billion yuan, and 8.028 billion yuan, respectively, with net profits of 208 million yuan, 301 million yuan, and 385 million yuan [12]. Financial Performance Summary - In 2023, the company reported a total revenue of 2.848 billion yuan, with a growth rate of 74% [12]. - The net profit attributable to shareholders was 120 million yuan, with a growth rate of 72.3% [12]. - The earnings per share (EPS) for 2023 was 0.77 yuan, with a projected EPS of 1.33 yuan for 2024 [12]. - The price-to-earnings (PE) ratio is projected to decrease from 21 in 2023 to 12 in 2024, and further to 8 in 2025, indicating improving valuation [12]. Business Segment Performance - Distribution Equipment: Revenue reached 1.297 billion yuan in 2023, growing by 42.1%, with significant sales growth in busbars [12]. - Photovoltaic Materials: The photovoltaic new materials segment generated 1.12 billion yuan in revenue, an increase of 81.67% year-on-year [12]. - Energy Storage: The energy storage business saw a remarkable revenue increase of 386.97%, reaching 351 million yuan in 2023 [12].