WAYS(SH:605218) Dongxing Securities·2024-05-14 10:02Investment Rating - The report maintains a "Recommended" rating for the company, indicating an expected relative performance that is stronger than the market benchmark index by 5% to 15% [5][29]. Core Insights - The company achieved a revenue growth of 41.63% year-on-year in Q1 2024, with total revenue reaching 407 million yuan. The net profit attributable to the parent company, excluding non-recurring items, was 8.5843 million yuan, reflecting a year-on-year increase of 40.92% [5][8]. - The gross profit margin for Q1 2024 was 13.22%, which represents a decline of 5.05 percentage points year-on-year and a decrease of 3.21 percentage points quarter-on-quarter. This decline is attributed to an increase in the number of mass-produced products and the ramp-up of new product introductions [5][8]. - The company is expanding its production capacity, with construction in progress amounting to 135 million yuan, a significant increase of 453% compared to the same period last year. This expansion is driven by increased sales revenue and improved cash flow from operating activities, which saw a year-on-year growth of 326.35% in Q1 2024 [5][8]. Financial Performance Summary - The company forecasts its earnings per share (EPS) for 2024, 2025, and 2026 to be 0.70 yuan, 1.03 yuan, and 1.39 yuan, respectively. The projected revenue for 2024 is 2.17286 billion yuan, with a growth rate of 38.60% [19][5]. - The net profit attributable to the parent company is expected to reach 148.57 million yuan in 2024, reflecting a growth rate of 25.90% [19][5]. - The company has invested 15 million USD in establishing a wholly-owned subsidiary in Vietnam to enhance its global supply chain and operational efficiency, leveraging Vietnam's labor cost advantages [5][8].