WMM(002149) 海通证券·2024-06-03 10:31Investment Rating - The report maintains an "Outperform" rating for the company [3] Core Views - The company achieved record-high revenue and profits in 2023, with steady growth in its main product lines [17] - The company's titanium products accounted for 73.76% of total revenue in 2023, reaching 2.38 billion yuan, an increase of 8.75% YoY [17] - The company has made significant progress in R&D, with over 60 research projects in aerospace, nuclear power, shipbuilding, and hydrogen energy [17] - The company has successfully implemented energy-saving measures, reducing energy consumption by 1,400 tons of standard coal in 2023 [17] - The company's alloy ingot production capacity has exceeded 10,000 tons, with a total capacity of 20,000 tons per year [17] Financial Performance - Revenue for 2023 was 3.226 billion yuan, a 9.69% increase YoY, with net profit reaching 196 million yuan, up 6.0% YoY [6][17] - Revenue is expected to grow to 4.062 billion yuan in 2024, 5.179 billion yuan in 2025, and 6.690 billion yuan in 2026, with YoY growth rates of 25.9%, 27.5%, and 29.2% respectively [6] - Net profit is forecasted to increase to 255 million yuan in 2024, 346 million yuan in 2025, and 433 million yuan in 2026, with YoY growth rates of 30.2%, 35.3%, and 25.2% respectively [6] - The company's gross margin is expected to remain stable at around 21.2%-21.8% from 2024 to 2026 [6] Valuation and Projections - The company's EPS is projected to be 0.52 yuan in 2024, 0.71 yuan in 2025, and 0.89 yuan in 2026 [6] - The report suggests a PE valuation range of 30-35x for 2024, implying a fair value range of 15.60-18.20 yuan per share [17] - The company's ROE is expected to increase from 6.7% in 2023 to 10.9% by 2026 [6] Industry and Competitive Analysis - The company's main competitors include Baoti Co Ltd, Western Superconducting, and Fushun Special Steel, with average PE ratios of 24.68x for 2024 and 19.46x for 2025 [8] - The company's valuation metrics (P/E, P/B, P/S) are competitive within the industry, with a P/E of 28.65x for 2024 and 21.17x for 2025 [21] Operational Highlights - The company has completed several key construction projects, including a high-performance, low-cost titanium alloy production line, with a total of 225 million yuan transferred to fixed assets in 2023 [17] - The company has been recognized as a national green factory, with four subsidiaries achieving this status [17] - The company's R&D efforts have led to breakthroughs in high-performance titanium alloy materials, supporting domestic production and reducing reliance on imports [17]