Wetown Electric(SH:688226) Minsheng Securities·2024-05-19 10:00Investment Rating - The report maintains a "Buy" rating for the company with a current price of 19.40 CNY [13]. Core Viewpoints - The company is experiencing steady performance improvement, driven by three main sectors: power equipment, energy storage, and photovoltaic materials. The focus is on smart manufacturing and global market expansion, with significant growth in photovoltaic materials and energy storage segments [10][18]. - The company achieved a revenue of 2.848 billion CNY in 2023, representing a year-on-year increase of 74%, and a net profit of 120 million CNY, up 72% year-on-year. The first quarter of 2024 showed continued growth with a revenue of 795 million CNY, up 84.68% year-on-year [18][19]. Summary by Sections 1. Performance Overview - The company’s revenue and net profit have shown significant growth, with a revenue increase of 74% in 2023 and a net profit increase of 72%. The first quarter of 2024 continued this trend with an 84.68% increase in revenue year-on-year [18][19]. 2. Power Distribution Equipment - The power distribution equipment segment is stable, with busbars being a key product suitable for high current scenarios. The company has high customer recognition and has been involved in several large projects [22][27][59]. - The transformer and complete equipment segments are expected to provide additional growth opportunities, supported by increasing demand for power infrastructure [63]. 3. Energy Storage - The energy storage segment is expanding, with a notable increase in the number of projects and a significant rise in the shipment of large-scale and commercial energy storage systems. The cost of energy storage systems is decreasing, enhancing their economic viability [38][40][42][65]. - The company is actively developing energy storage products and has established subsidiaries to enhance its market presence [80][104]. 4. Photovoltaic Materials - The photovoltaic sector is benefiting from high demand, with expectations for continued growth in global installations. The company’s photovoltaic welding strips are positioned to gain market share as the industry consolidates [83][86][109]. - The report anticipates a significant increase in global photovoltaic installations, projecting a growth rate of over 20% in 2024 [109].