OKE(688308) 西南证券·2024-07-01 23:30Investment Rating - The report maintains a "Buy" rating for the company, with a projected compound annual growth rate (CAGR) of 33% for net profit from 2024 to 2026 [4]. Core Insights - The company is expanding its tungsten industry chain by investing in photovoltaic tungsten wire production, which is expected to benefit from the growing demand in the global photovoltaic market [3][8]. - The global photovoltaic installation demand is projected to reach approximately 390 GW in 2023, a year-on-year increase of 67%, leading to a significant rise in demand for diamond wire, particularly tungsten wire [3]. - The company plans to establish a subsidiary, Oke Yi New Energy, with an investment of 1.45 billion yuan to build a production line for 100 billion meters of tungsten wire [6]. Financial Summary - The company's projected revenue for 2024 is 1,026.46 million yuan, with a growth rate of 32.27%. By 2026, revenue is expected to reach 2,222.79 million yuan, with a growth rate of 27.21% [5]. - The net profit attributable to the parent company is forecasted to be 166 million yuan in 2024, increasing to 389.45 million yuan by 2026, reflecting a growth rate of 39.81% in that year [5]. - Earnings per share (EPS) are expected to rise from 1.05 yuan in 2024 to 2.45 yuan in 2026 [5]. Industry Context - The transition from carbon steel to tungsten wire for diamond wire is driven by tungsten's higher tensile strength, allowing for thinner wire diameters, which in turn increases silicon wafer yield and reduces material costs [7]. - The market for photovoltaic tungsten wire is still in its early stages, with major players like Xiamen Tungsten Co. leading the market. The company is well-positioned to capitalize on this growth if it can achieve large-scale production [8].