Willfar(688100) 天风证券·2024-10-25 07:09Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 40.98 yuan [6] Core Views - The company achieved double-digit growth in both revenue and net profit, with Q3 2024 revenue reaching 719 million yuan, a 10.60% YoY increase, and net profit of 151 million yuan, up 14.48% YoY [2] - The company's globalization strategy is progressing well, with overseas revenue surging 105.85% YoY to 329 million yuan in the first three quarters of 2024 [3] - The communication module has become the company's top product, contributing 597 million yuan, or 30.88% of total revenue, with a 22.27% YoY growth [4] - The company has launched over 30 new products and solutions in 2024, including distributed photovoltaic solutions, which have already secured over 100,000 renovation projects [4] - The company's order backlog reached 3.766 billion yuan as of September 2024, a 28.7% YoY increase, providing strong support for future performance [4] Financial Performance - Revenue is expected to grow from 2.003 billion yuan in 2022 to 4.228 billion yuan in 2026, with a CAGR of 23.05% [1] - Net profit attributable to the parent company is projected to increase from 400.16 million yuan in 2022 to 1.013 billion yuan in 2026, with a CAGR of 24.71% [1] - The company's profitability has improved, with a net profit margin of 21.76% in the first three quarters of 2024, up 0.92 percentage points YoY [3] - The company's ROE reached 14% in the first three quarters of 2024, an increase of 1.29 percentage points YoY [3] Valuation Metrics - The company's P/E ratio is expected to decline from 50.35 in 2022 to 19.90 in 2026, indicating improving valuation attractiveness [1] - The P/B ratio is projected to decrease from 7.42 in 2022 to 4.71 in 2026 [1] - The EV/EBITDA ratio is forecasted to drop from 15.90 in 2022 to 15.16 in 2026 [1] Industry Outlook - The company is well-positioned to benefit from the 3 trillion yuan investment in new energy and digital transformation of the power grid during the 14th Five-Year Plan period [5] - The company is actively expanding its presence in digital power grids, communication chips, and smart city solutions, with a focus on emerging areas such as virtual power plants and new energy storage [5] Shareholder Returns - The company has repurchased and canceled 8.31 million shares, amounting to approximately 200 million yuan, which is expected to increase EPS and enhance shareholder returns [4] - Since its IPO, the company has distributed a total of 704 million yuan in cash dividends, exceeding its net IPO proceeds of 610 million yuan [4] - The company plans to maintain a 40% cash dividend payout ratio for 2024 [4]