WOER(002130) 华鑫证券·2024-06-16 23:00Investment Rating - The report gives a "Buy" rating for the company, with a predicted stock price increase of over 20% relative to the market index [12][13] Core Views - The company's Q1 2024 net profit attributable to parent company was 184 million yuan, up 77.27% YoY, and adjusted net profit was 173 million yuan, up 78.84% YoY [3] - The company is implementing a share repurchase plan, using 100-120 million yuan of its own funds to buy back shares, with 13.565 million shares repurchased by May 31, 2024, accounting for 1.08% of total shares [3] - The company's high-speed communication cable products have achieved stable mass production of 400G and 800G, and are in the sampling stage for 224G single-channel products with major customers like Amphenol [4] - The company's revenue is expected to grow from 6.694 billion yuan in 2024 to 9.490 billion yuan in 2026, with EPS increasing from 0.66 yuan to 0.96 yuan [4] Business Segments Electronics - The company holds a significant market share in China's heat shrinkable materials industry, with breakthroughs in high-end sectors like new energy, medical, and aviation [13] - It has developed new products like 150℃ double-wall tubes, upgraded FEP medical heat shrink tubes, and MT series polyolefin/fluororesin medical heat shrink tubes [13] Power Products - The company has made progress in ultra-high voltage cable accessories, with 330kV and 500kV products passing pre-qualification tests [13] - Its 66kV offshore wind power separable connector series has passed certification, benefiting from China's nuclear power development trend [13] Wire Products - Subsidiary Loting Zhilian has advanced 67Hz network analyzers and has completed development of 800G high-speed communication cables [13] - Its high-speed communication cable products have reached international advanced levels, serving major clients like Amphenol, Volex, Molex, TE Connectivity, and Luxshare [13] New Energy Products - The company holds over 60% market share in China's national standard DC charging guns [13] - Its high-power liquid-cooled charging guns (1000A/1000V) have achieved the largest charging power in China, with growing orders from clients like Teld, Kehua, and Sinexcel [13] Financial Performance - 2023 revenue was 5.723 billion yuan, up 7.61% YoY, with net profit attributable to parent company of 700 million yuan, up 13.97% YoY [15] - Gross margin improved to 32.63% in 2023, with electronics and power products showing margin increases due to R&D investment and cost reductions [15] - 2024-2026 revenue is forecasted to grow at 17.0%, 18.2%, and 19.9% respectively, with net profit growth of 19.2%, 20.4%, and 20.2% [17][19] - ROE is expected to increase from 12.8% in 2023 to 14.8% in 2026 [20]