WTECL(SH:600157) Minsheng Securities·2024-05-09 08:30Investment Rating - The report maintains a "Cautious Recommendation" rating for the company [1][2]. Core Views - The company's coal-electricity complementary operations support stable performance, while its transition to energy storage is expected to drive future growth [1]. - In 2023, the company achieved operating revenue of 30.12 billion yuan, a year-on-year decrease of 15.29%, but net profit attributable to shareholders increased by 18.67% to 2.266 billion yuan [1]. - The first quarter of 2024 showed a revenue increase of 3.58% year-on-year, with net profit rising by 11.41% to 467 million yuan [1]. Summary by Sections Financial Performance - In Q4 2023, the company reported a net profit of 642 million yuan, a year-on-year increase of 74.43% and a quarter-on-quarter increase of 5.01% [1]. - The coal business saw significant improvements, with raw coal production reaching 12.9723 million tons, up 17.58% year-on-year, and sales volume at 12.9937 million tons, up 17.98% [1]. - The average selling price of coal was 872.46 yuan/ton, down 27.73%, while the sales cost was 390.43 yuan/ton, down 13.61%, resulting in a gross margin of 55.25%, a decrease of 7.31 percentage points [1]. Business Outlook - For 2024, the company plans to maintain coal production and sales above 12 million tons and generate over 37.5 billion kWh of electricity [1]. - In Q1 2024, coal production was 2.3952 million tons, a slight increase of 0.49% year-on-year, while sales volume decreased by 1.79% to 2.3742 million tons [1]. - The electricity generation in Q1 2024 was 9.999 billion kWh, an increase of 14.15% year-on-year, with sales volume also increasing by 14.23% [1]. Strategic Initiatives - Key projects are progressing, including a 3000 tons/year high-purity vanadium pentoxide production line and a 300MW/year next-generation vanadium flow battery production line expected to be operational by Q4 2024 [1]. - The company is actively developing energy storage solutions, with ongoing projects in integrated solar-storage systems and advancements in battery technology [1]. Profit Forecast - The projected net profits for 2024-2026 are 2.405 billion yuan, 2.635 billion yuan, and 3.147 billion yuan, respectively, with corresponding EPS of 0.11, 0.12, and 0.14 yuan per share [1][2].