Wencan Holdings' stock price rose on May 12. As of 10:53 a.m. on the 12th, Wencan Holdings was up 1.28%, trading at 21.38 yuan per share.
In terms of news, Wencan Holdings announced on May 10 that its subsidiary, Guangdong Wencan, had recently received a nomination letter from a new domestic customer, confirming Guangdong Wencan as the supplier of its three-in-one motor housing. The company stated: "This nominated project is expected to commence mass production in the second half of 2025, with an estimated project life cycle of five years. The total sales revenue over the project's life cycle is expected to range from 200 million yuan to 250 million yuan." Regarding the impact on the company, Wencan Holdings stated: 1) Obtaining this new customer project nomination will further consolidate the company's technological capabilities and strength in new energy vehicle (NEV) powertrain products, while also providing an opportunity for the company to deeply integrate with NEV customers. 2) This project is not expected to have a significant impact on the company's performance this year, but the project nomination will be beneficial in increasing the company's business revenue in future years and will have a positive impact on the company's future operating performance.
Wencan Holdings' 2024 annual report revealed that in 2024, the company achieved operating revenue of 6.25 billion yuan, up 22.5% YoY; net profit attributable to shareholders was 115 million yuan, up 128.2% YoY; and net profit attributable to shareholders after deducting non-recurring gains and losses was 98.22 million yuan, up 119.0% YoY. In 2024, in response to the accelerated electrification, the widespread adoption of integrated die-casting, and the localization trend of European and American supply chains, Wencan Holdings continued to invest in and optimize its domestic and overseas production capacities, driving sustained growth in operating revenue, which exceeded 6 billion yuan for the first time. Meanwhile, the company's net profit attributable to shareholders increased significantly YoY, primarily due to the expansion of sales scale and the optimization of product mix. In particular, the delivery volume of new car models from customers surged, significantly increasing the revenue share of auto body structural components and large integrated die-castings, effectively offsetting the external impacts of cost reduction pressure in the supply chain and exchange rate fluctuations.
In addition, Wencan Holdings previously released its Q1 2025 report, showing that in the first quarter, the company's total operating revenue was 1.27 billion yuan, a decrease of 210 million yuan compared to the same period last year, down 14.17% YoY. Net profit attributable to shareholders was 3.8603 million yuan, a decrease of 58.2022 million yuan compared to the same period last year, down 93.78% YoY.
On April 29, Minsheng Securities issued a research report recommending Wencan Holdings. The reasons for the recommendation mainly include: 1) Improved profitability in Q4 2024, with pressure on Bailian's performance in Q1 2025; 2) Continuing to lead the industry in integrated die-casting and achieving breakthroughs in magnesium alloy die-casting from scratch; 3) Significant increase in production volume from core customers, expected to drive performance improvement.Risk warnings: Rising material prices; intensified competition in the integrated die-casting industry; exchange rate fluctuations, etc.
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