Warom Incorporated(SH:603855) ZHONGTAI SECURITIES·2024-04-29 03:30Investment Rating - The report maintains a "Buy" rating for the company, expecting a relative increase of over 15% compared to the benchmark index within the next 6 to 12 months [1][8]. Core Insights - The company reported a Q1 2024 revenue of 644 million yuan, representing a year-on-year growth of 5.42%. However, the net profit attributable to the parent company was 85 million yuan, showing a decline compared to the previous year [1][2]. - The company anticipates a recovery in growth rates following seasonal impacts on performance recognition, with expectations for significant growth in safety engineering and foreign trade sectors [2][1]. - The report highlights that the demand for explosion-proof electrical equipment is expected to increase due to changes in the domestic oil and gas industry's investment structure, with more projects in downstream sectors like refining and fine chemicals [1][2]. Financial Projections - Revenue projections for the company are as follows: - 2023A: 3,197 million yuan - 2024E: 4,079 million yuan (growth rate of 28%) - 2025E: 4,615 million yuan (growth rate of 13%) - 2026E: 5,290 million yuan (growth rate of 15%) [1][5]. - Net profit projections are: - 2023A: 461 million yuan - 2024E: 545 million yuan (growth rate of 18%) - 2025E: 628 million yuan (growth rate of 15%) - 2026E: 739 million yuan (growth rate of 18%) [1][5]. - Earnings per share (EPS) are projected to increase from 1.37 yuan in 2023A to 2.19 yuan in 2026E [1][5]. Growth Potential - The company is expected to benefit from the increasing demand in new fields such as food, pharmaceuticals, and liquor, alongside its traditional markets [1][2]. - The report notes that the company has established overseas operational centers in Europe, Central Asia, and Southeast Asia, positioning itself for global competition and potential growth in international markets [1][2].