Brief evaluation of performance

On August 29, 2024, the company disclosed its semi-annual report, achieving revenue of 5.28 billion yuan in the first half of the year, an increase of 34.9% year-on-year; The net profit attributable to the parent company was 434 million yuan, a year-on-year decrease of 46.9%, mainly affected by the slowdown in the transfer of wind farms (a year-on-year decrease of 354 million yuan) and the decrease in government subsidies (a year-on-year decrease of 77 million yuan). Among them, Q2 achieved revenue of 3.55 billion yuan, a year-on-year increase of 51.1%; The net profit attributable to the parent company was 168 million yuan, a year-on-year decrease of 49.8%.

Business analysis Wind

turbine external delivery hit a new high, and the profit recovery slightly exceeded expectations: In the first half of the year, the company's domestic onshore wind turbine external sales scale was 3.3GW, a year-on-year increase of 121%, creating the best delivery performance in the same period in history. In the first half of the year, the gross profit margin of the company's fan business was 15.13%, an increase of 6.14pct from the second half of last year, achieving two consecutive quarters of quarter-on-quarter improvement. From the perspective of shipment structure, the proportion of high-power models has been further increased, and in the first half of the year, 5. The revenue of wind turbines with XMW and above accounted for 86.8% of the total unit revenue, an increase of 32.3pct year-on-year and an increase of 5.8pct month-on-month in 2H23.

The transfer of wind farms has slowed down, and the scale of construction is huge: In the first half of the year, the company achieved investment income of 442 million yuan, a year-on-year decrease of 354 million yuan, mainly affected by the decline in the scale of wind farm sales. In the first half of the year, the company established and significantly expanded the professional team of new energy investment and development, increased the acquisition of wind resources and made positive progress. As of the end of the first half of the year, the company has a large scale of wind resources to be developed in hand, and the scale of self-built wind farms currently under construction exceeds 2GW.

The company's R&D expense ratio in the first half of the year was 7.1%, a year-on-year decrease of 4.0pct, and it still maintained a high level of R&D investment compared with its peers. In the first half of the year, the company's onshore 8.5MW-11MW platform completed the hoisting and grid connection of 4 prototypes, and currently has the ability to deliver 150 10MW wind turbines for 1H24. The technical development of the 15MW onshore wind turbine has been completed, the trial production of the unit has been basically completed, and the expansion and development of the co-platform offshore model is being carried out simultaneously.

Earnings Forecast, Valuation and Rating

According to the company's semi-annual report and our latest judgment on the industry, the net profit attributable to the parent company for 2024-2026 is adjusted to 23.9, 2.99 and 3.39 billion yuan, corresponding to PE of 12, 10 and 8 times, and the "buy" rating is maintained.

Risk Warning: Wind

power installed capacity is less than expected; the risk of increased competition; Raw material prices fluctuate.