According to Securities Star News, on December 17, 2024, Sany Renewable Energy (688349) announced that the company will organize on-site visits on December 13, 2024, with 11 people including Cheng Ming, Xu Qingyong, Qiu Di and others of Guohai Securities, Meng Jie of Manulife Fund, Zhao Tenghui of CICC Asset Management, investors, Zhang Zixuan of China Post Fund, Zhang Hongyao of Guojin Fund, Wen Siqi of Huafu Securities, Liu Yunfei of Chengtong Securities, Li Chen of Caitong Securities, Qin Xuwen of Dongfanghong, Sun Yili of Dongxing Fund, and Xu Guangjin of Qianhai Open Source participated.

The details are as follows:

Q: What kind of forecast and judgment does the company have for the installed capacity of wind turbines this year, next year and during the "15th Five-Year Plan" period?

Answer: It is expected that the installed capacity of domestic wind turbines this year will be about 80GW, and the bidding volume will increase significantly year-on-year, and the annual bidding volume is expected to be about 140GW. This year's high bidding volume brings with it the expectation of high installed capacity next year, which is expected to be more than 100GW next year. It is expected that the number of domestic tenders this year and the installed capacity next year will hit a record high.

The company expects that the installed capacity of the industry will continue to maintain stable growth during the "15th Five-Year Plan" period, and there will be ups and downs between different years, and there may be a situation of low before and then high. At present, the industry is more concerned about the installed capacity in 2026, and it is necessary to further observe the industry bidding situation in 2025, and the company expects that the bidding volume in 2025 will remain at a high level. At the same time, with the advancement of the US dollar interest rate cut next year, the willingness of overseas owners to start construction will be strengthened, and it is expected that overseas shipments will maintain rapid growth from 2026.

Q: What specific measures will the company take to enhance its competitiveness in the global market?

A: First of all, the company will further stabilize the domestic onshore wind power market, and it is expected that domestic onshore wind turbine orders will continue to maintain stable growth this year, and make a good order reserve for shipments next year.

In terms of overseas markets, the Company disclosed the "Announcement on Signing Overseas Wind Turbine Sales Contracts" on October 28, and signed sales contracts for a total of 1,624MW of wind turbines with three subsidiaries of JSW Group and Sembcorp Group's Indian subsidiary. In addition, the company has a number of projects under discussion in India. Kazakhstan and Uzbekistan are two important wind markets in Central Asia, and larger capacity wind projects are expected to be developed in the region by 2030. The company has cooperated with the sovereign wealth fund of Kazakhstan to lay out an industrial base in Kazakhstan; Obtained the right to develop a GW-level greenfield project in Uzbekistan. The company is also actively expanding in the European region, and during this year's wind energy show in Hamburg, the company launched two models developed for the European market.

Q: What are the barriers to the wind power industry, and why have there been new entrants in recent years unlike other industries?

A: Wind power has entered the era of parity since 2020, and at the same time, the large-scale wind turbine has developed rapidly, the price of a single kilowatt has dropped significantly, and the industry competition is fierce. Wind power is an industry with high technical threshold, high quality and reliability requirements, and the products and technologies of leading enterprises have been accumulated, developed and verified by the market for a long time, and it is difficult for new entrants to obtain advanced wind turbine manufacturing technology and stable quality control capabilities in the short term.

Q: How does the company view the recent bidding price, and what is the expected trend of the subsequent bidding price?

Answer: During this year's Beijing Wind Energy Exhibition, 12 domestic wind power enterprises signed the industry self-discipline convention to jointly resist unreasonable competition, and the industry competition environment is expected to improve. Recently, individual owners have optimized the bidding rules, and other owners may optimize the bidding rules in the future. A variety of signs show that the current industry bidding price is at the bottom of the range, as the industry pays more attention to product quality, the bidding price is expected to rise slowly.

Q: What are the company's expectations for parts prices next year and the following years?

Answer: After several years of fierce competition, the competition pattern of parts manufacturers in the wind power industry has been optimized. The company expects that the overall price increase of parts will not increase next year, but it does not rule out that the supply of individual large megawatt parts will be tight, and there may be a possibility of price increases.

Q: What kind of empowerment has the promotion of the company's digital strategy brought to the company?

Answer: Through digital transformation, the company's host and blade smart factory have reduced labor input, improved production efficiency, and can better cope with the requirements of high delivery volume in the fourth quarter of each year. At the same time, the improvement of the level of intelligence can ensure the stable output of output and quality, and reduce the hidden quality hazards caused by manual operations. In addition, the company's digital factory model can also be replicated in overseas regions in the future, helping wind power go overseas and reducing the impact of unfavorable factors such as high overseas labor costs and difficult personnel management. In the future, the development of industry digitalization is inseparable from artificial intelligence, and technology will bring new vitality to the technological progress of the entire wind power industry.

Q: How does the company weigh gross margin against market share?

Answer: The company adheres to the principle of "scale obeys efficiency". The company believes that to enter the wind power industry, it is necessary to give full play to its own advantages and maintain a reasonable profit level in order to become bigger and stronger. In 2023, the company's profit level will remain at the leading level in the industry. As a growing enterprise, the company will strive to maintain continuous growth in new orders this year and continue to increase its market share in the future.

Sany Renewable Energy (688349) main business: R&D, manufacturing and sales of wind turbines, design, construction, operation and management of wind farms.

According to Sany Renewable Energy's third quarter report in 2024, the company's main revenue was 9.068 billion yuan, an increase of 21.06% year-on-year; net profit attributable to the parent company was 685 million yuan, a year-on-year decrease of 33.55%; deducted non-net profit of 612 million yuan, a year-on-year decrease of 18.61%; In the third quarter of 2024, the company's single-quarter main revenue was 3.788 billion yuan, a year-on-year increase of 5.93%; the net profit attributable to the parent company in a single quarter was 251 million yuan, an increase of 17.56% year-on-year; deducted non-net profit of 224 million yuan in a single quarter, an increase of 228.69% year-on-year; The debt ratio was 66.09%, the investment income was 490 million yuan, the financial expenses were -107 million yuan, and the gross profit margin was 15.53%.

A total of 14 institutions have rated the stock in the last 90 days, 10 have given buy ratings and 4 have overweight ratings. The average institutional price target over the last 90 days is 33.79.

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