Investment highlights

The company's operating income grew steadily, and the net profit attributable to the parent company continued to be under pressure in 2024H1, and the company achieved operating income of 5.280 billion yuan, a year-on-year increase of 34.88%; net profit attributable to the parent company was 434 million yuan, a year-on-year decrease of 46.92%; net profit after deducting non-attributable to the parent company was 388 million yuan, a year-on-year decrease of 43.23%. In 2024Q2, the company achieved operating income of 3.553 billion yuan, a year-on-year increase of 51.09% and a month-on-month increase of 105.60%; net profit attributable to the parent company was 168 million yuan, down 49.82% year-on-year and 36.87% month-on-month; The gross profit margin of sales was 14.23%, down 6.49 pct year-on-year and 5.44 pct month-on-month.

Fan: The delivery volume of fans reached a new high, the gross profit margin improved month-on-month in

2024H1, and the company's revenue from fans and accessories was 4.917 billion yuan, of which 5. X MW and above 4.209 billion yuan, accounting for 80.44% of the main business income. In 2024H1, the company's domestic onshore wind turbine sales capacity was 3.3GW, a year-on-year increase of 121%, creating the best delivery performance in the same period in history. The gross profit margin of the wind turbine business in 2024H1 was 15.13%, an increase of 6.14pct from the previous quarter, which has improved for two consecutive quarters and is at the leading level in the industry. From May to June 2024, the company won the bid for two projects in Inner Mongolia, with a total of 150 units of 10 MW. During the reporting period, the onshore 8.5MW-11MW platform completed the hoisting and grid connection of 4 prototypes, and the 15MW onshore wind turbine has completed the technical development and basically completed the trial production of the unit. The Seabreeze SI-23085 prototype obtained the type approval certificate in May 2024.

Overseas: India project to establish benchmarking performance, overseas market is negotiating order capacity is considerable2024H1 The company completed the hoisting power generation of the first India project, established benchmarking performance, successfully won a number of projects in India, Southeast Asia and the Middle East, achieved market breakthroughs in many countries, negotiated a large contract installed capacity, and new overseas orders are expected to achieve rapid growth throughout the year; The company has successfully obtained the development right of gigawatt-level greenfield projects in Central Asia, and is currently advancing the relevant procedures. The company has established subsidiaries in Brazil, U.A.E., the Philippines, South Africa and other places to promote the deployment and promotion of global business; Accelerate the construction of overseas production capacity, promote the expansion of factories in India, prepare for the construction of factories in Kazakhstan, and strengthen overseas supply assurance capabilities.

The company vigorously promoted cost reduction and efficiency increase, and the cost decreased by about 5pct during the 24H1 period2024H1 The company's cost control was quite effective, with an expense rate of 15.33% during the period, a year-on-year decrease of 4.58pct, and through the application and implementation of cost reduction methods such as strategic alliances, resource locking, R&D and innovation, it strives to achieve significant cost reduction throughout the year; In 2024H1, the company's R&D expenses will be 373 million yuan, accounting for 7.07% of operating income, mainly invested in the testing, testing and certification of large-scale, overseas, offshore products and various types of products.

Earnings Forecast & Valuation

Maintain earnings forecast and Buy. The company is a leading domestic wind power equipment company, with an industry-leading gross profit margin for wind turbines, and has successfully built overseas benchmark projects. Considering that the company's cost reduction and efficiency increase effect is significant, we maintain the profit forecast for 2024-2026, and it is expected that the company's net profit attributable to the parent company in 2024-2026 will be 23.40, 28.61 and 3.354 billion yuan respectively, and the corresponding EPS will be 1.91, 2.33 and 2.74 yuan per share respectively, and the corresponding PE will be 12, 10 and 9 times respectively.

Risk Warning: The

installed demand for wind power is lower than expected; intensified competition in the industry; fluctuations in raw material prices; Risk of product price fluctuations.