Wencan(SH:603348) Minsheng Securities·2024-05-07 06:30Investment Rating - The report maintains a "Recommended" rating for the company [1]. Core Views - The company has made significant progress in integrated die-casting, securing new projects with major automotive clients, which is expected to enhance its market share and competitive edge [1]. - Recent legal developments regarding tax disputes in Mexico have resulted in a favorable outcome for the company's subsidiary, potentially leading to positive financial impacts [1]. - The company's core clients, particularly in the electric vehicle sector, are expected to ramp up production, driving substantial revenue growth from 2024 onwards [1]. Summary by Relevant Sections Event Overview - The company announced that its subsidiary received a notification from a leading electric vehicle manufacturer, confirming it as a supplier for integrated body structure components, with expected sales of 450 to 500 million yuan over the project's lifecycle [1]. - The company also reported a favorable court ruling regarding a tax dispute in Mexico, which may positively affect its financial performance [1]. Integrated Die-Casting Breakthrough - The company has achieved multiple new project approvals in the integrated die-casting sector, with a total of 11 large integrated structural components designated for various automotive clients [1]. - The new project is expected to start mass production in Q4 2025, with a project lifecycle of four years [1]. Core Client Volume Growth - The company is a key supplier for Huawei's Seres brand, with significant production increases expected for models M5, M7, and M9, which will likely enhance capacity utilization and revenue [1]. Financial Forecast - Revenue projections for 2024-2026 are 7.65 billion, 9.52 billion, and 11.51 billion yuan, respectively, with net profits expected to reach 417 million, 597 million, and 757 million yuan [3][6]. - The report anticipates a significant increase in earnings per share (EPS) from 1.58 yuan in 2024 to 2.87 yuan in 2026, reflecting strong growth potential [6].