WST(688122) 华创证券·2024-03-17 16:00Investment Rating - The report assigns a "Recommended" rating to the company with a target price of 44.6 CNY, indicating a potential upside of 12% from the current price of 39.93 CNY [1][3]. Core Insights - The company is recognized as a leading national team in the research, engineering, and industrialization of new metal materials, particularly in superconductors, high-end titanium alloys, and high-temperature alloys, fulfilling strategic material needs in China [1][12]. - The company has achieved significant technological advancements, becoming the only global producer of commercial low-temperature superconducting wire and a key supplier for major international projects like ITER [1][12]. - The company has demonstrated robust revenue growth, with a compound annual growth rate of 40% from 2018 to 2022, and is expected to recover in the future as domestic equipment upgrades occur [1][19]. Summary by Sections Section 1: Company Background - The company originated from the Northwest Institute of Nonferrous Metal Research and has evolved into a leading new materials innovation enterprise in China, focusing on superconductors and titanium alloys [12][13]. - It is the only company in China to achieve commercial production of low-temperature superconducting wire and has a comprehensive production capability for superconducting materials [1][12]. Section 2: Core Product Analysis - The company has established high barriers to entry in its three core product lines: superconductors, high-end titanium alloys, and high-temperature alloys, filling several domestic gaps [1][7]. - In 2022, the company produced 750 tons of superconducting products, 9,296 tons of high-end titanium alloys, and 1,167.75 tons of high-temperature alloys, with significant future capacity expansions planned [1][15][16]. Section 3: Technological and Management Strengths - The company maintains strict control over quality through its "three highs and one low" management approach, which emphasizes high uniformity, high purity, high stability, and low cost [7][12]. - The integration of research and production capabilities, inherited from its origins at the Northwest Institute, has positioned the company to continuously innovate and expand its product offerings [1][12]. Section 4: Market Opportunities - The aerospace sector presents significant growth potential, driven by military aircraft upgrades and domestic aircraft production, which will increase demand for high-end titanium and high-temperature alloys [1][19]. - The company is also poised to benefit from the growing market for MRI equipment, which relies on superconducting materials, as domestic production increases [1][19]. Section 5: Financial Performance and Projections - The company reported a revenue of 4.227 billion CNY in 2022, with a net profit of 1.08 billion CNY, and is projected to achieve revenues of 4.16 billion CNY, 6.05 billion CNY, and 7.47 billion CNY from 2023 to 2025 [2][19]. - Profit margins are expected to stabilize as the company continues to optimize costs and expand production capabilities [1][19].