WBTL(603596) Southwest Securities·2024-09-02 04:08Investment Rating - The report maintains a "Buy" rating for the company [1][3]. Core Views - The company reported a revenue of 3.97 billion yuan for the first half of 2024, representing a year-on-year increase of 28.3%, with a net profit of 457 million yuan, also up by 28.7%, aligning with expectations [2]. - The gross margin for the first half of 2024 was 21.1%, a decrease of 1 percentage point year-on-year, while the net profit margin was 11.6%, down by 0.1 percentage points [2]. - In Q2 2024, the company achieved a revenue of 2.11 billion yuan, a year-on-year increase of 32.4% and a quarter-on-quarter increase of 13.5%, with a net profit of 248 million yuan, up 35% year-on-year and 17.9% quarter-on-quarter [2]. - The company continues to expand its production capacity, with significant projects underway in Mexico and domestic facilities, including a new annual capacity of 300,000 EPS units and 300,000 EPS-ECU units [2]. - The company has successfully launched new products, including WCBS1.5 and WCBS2.0, and is progressing towards mass production of electric tailgates and new suspension products [2]. Summary by Sections Financial Performance - The company expects EPS for 2024-2026 to be 1.82, 2.22, and 2.66 yuan, respectively, with corresponding PE ratios of 20, 17, and 14 times, indicating a compound annual growth rate (CAGR) of 21.8% for net profit attributable to shareholders [3][4]. Business Growth - The company has seen robust growth across various product lines, with smart electronic control products sales increasing by 32% year-on-year, disc brake sales up by 15%, lightweight brake components up by 61%, and mechanical steering products up by 21% [2]. - The company added 196 new designated projects in the first half of 2024, a 35% increase year-on-year, including significant contracts with North American and German automotive companies [2]. Research and Development - The company has increased its R&D investment and is steadily advancing new product and technology development, with successful mass production of several new products [2].