WST(688122) 国海证券·2025-04-22 12:20Investment Rating - The report assigns an "Accumulate" rating for the company, marking its first coverage [1][11][46]. Core Views - The superconducting business has shown remarkable performance, with a significant increase in net profit year-on-year for the first quarter of 2025 [1][5]. - The company achieved a revenue of 4.612 billion yuan in 2024, representing a year-on-year growth of 10.91%, and a net profit of 801 million yuan, up 6.44% year-on-year [4][11]. - The high-end titanium alloy materials segment saw a revenue increase of 9.87%, while superconducting products grew by 32.41% [6][11]. Summary by Sections Financial Performance - In Q1 2025, the company reported a revenue of 1.074 billion yuan, a year-on-year increase of 35.31%, and a net profit of 170 million yuan, up 53.85% year-on-year [5][8]. - The gross profit margin for Q1 2025 was 35.29%, an increase of 6.83 percentage points year-on-year [5][8]. - For the full year 2024, the company had a gross profit margin of 33.55%, which is an increase of 1.68 percentage points compared to the previous year [4][6]. Product Segments - The high-end titanium alloy materials segment generated a revenue of 2.752 billion yuan in 2024, with a gross margin of 38.67%, up 4.26 percentage points year-on-year [6][15]. - The superconducting wire segment achieved a revenue of 1.304 billion yuan, with a gross margin of 30.22%, although it decreased by 4.16 percentage points year-on-year [6][15]. - The high-performance high-temperature alloy materials segment saw a revenue decline of 31.02%, totaling 327 million yuan, but its gross margin improved by 6.39 percentage points [7][15]. Future Projections - The company is projected to achieve revenues of 5.632 billion yuan, 6.822 billion yuan, and 8.258 billion yuan for the years 2025, 2026, and 2027, respectively [11][44]. - Corresponding net profits are expected to be 1.010 billion yuan, 1.255 billion yuan, and 1.498 billion yuan for the same years [11][44]. - The report anticipates a positive demand trend for titanium alloys and a significant increase in superconducting wire production capacity [11][44].