WTECL(SH:600157) Capital Securities·2024-04-30 03:00Investment Rating - The investment rating for the company is "Accumulate" [2] Core Views - The company's power business has significantly turned profitable, accelerating the transition to energy storage [2] - In 2023, the company achieved an operating revenue of 30.12 billion yuan, a decrease of 15.29%, while the net profit attributable to shareholders was 2.27 billion yuan, an increase of 18.67% [5][6] - The coal segment maintained stable profitability despite a decrease in sales prices, with a revenue of 12.42 billion yuan, down 9.30% [5] - The power segment's revenue increased by 6.28% to 16.71 billion yuan, benefiting from lower raw material costs [5] - The company is focusing on the all-vanadium flow battery technology for energy storage, with significant projects expected to commence production in Q4 2024 [5] - Profit forecasts for 2024-2026 indicate net profits of 2.67 billion, 2.77 billion, and 2.84 billion yuan respectively, with a current PE ratio of 11.1, 10.7, and 10.5 times [5] Summary by Sections Financial Performance - In Q1 2024, the company reported a revenue of 7.32 billion yuan, an increase of 3.58%, and a net profit of 467 million yuan, up 11.41% [5] - The coal production for 2023 was 12.97 million tons, an increase of 17.58%, while the sales volume was 12.99 million tons, up 17.98% [5] - The average selling price of self-produced coal decreased by 18.20% to 697 yuan per ton [5] Business Segments - The coal segment's operating cost increased by 16.04% to 6.23 billion yuan, while the power segment's operating cost decreased by 11.18% to 14.93 billion yuan [5] - The power segment's gross margin improved to 10.68%, an increase of 17.55 percentage points due to lower production costs [5] Future Outlook - The company is expected to maintain stable performance due to its integrated coal and power operations, with a projected revenue growth of 2.5% in 2026 [6] - The ongoing projects in the energy storage sector are anticipated to enhance the company's core competitiveness and long-term profitability [5]