Wencan(603348) 民生证券·2024-07-10 09:00Investment Rating - The report maintains a "Recommended" rating for the company, with a target price based on the closing price of 29.31 CNY per share on July 10, 2024, corresponding to a PE ratio of 19 for 2024, 13 for 2025, and 10 for 2026 [9][8]. Core Insights - The company has achieved breakthroughs in securing contracts for body structure components from foreign clients, indicating strong recognition of its capabilities in lightweight product development and production assurance [8]. - The company is positioned as a leader in integrated die-casting, actively engaging with top-tier new energy vehicle manufacturers, which is expected to drive significant revenue growth starting in 2024 [8]. - The core customer, a key supplier to Huawei's Seres brand, has shown substantial volume increases, which is anticipated to enhance the company's performance [8]. Financial Forecasts - Revenue projections for the company are as follows: 51.01 billion CNY in 2023, increasing to 76.49 billion CNY in 2024, 95.23 billion CNY in 2025, and 115.14 billion CNY in 2026, reflecting growth rates of -2.4%, 49.9%, 24.5%, and 20.9% respectively [8][11]. - The net profit attributable to shareholders is forecasted to rise from 500 million CNY in 2023 to 4.17 billion CNY in 2024, 5.97 billion CNY in 2025, and 7.55 billion CNY in 2026, with growth rates of -78.8%, 726.6%, 43.1%, and 26.6% respectively [8][11]. - Earnings per share (EPS) are expected to increase from 0.19 CNY in 2023 to 1.58 CNY in 2024, 2.26 CNY in 2025, and 2.86 CNY in 2026 [8][11]. Key Projects and Contracts - The company’s subsidiary, Tianjin Xiongbang, has been selected as a supplier for a German automotive manufacturer for electric motor housing, with an estimated total sales amount of 700 million to 800 million CNY over a five-year project lifecycle starting in Q2 2026 [8]. - Another subsidiary, Jiangsu Xiongbang, has secured a contract for body structure components from a foreign electric vehicle brand, with projected sales of 300 million to 400 million CNY over a five-year lifecycle starting in Q4 2026 [8].