Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company achieved its highest quarterly net profit since its listing in Q1 2025, with a net profit of 231 million yuan, representing a year-on-year increase of 336% [4] - The company reported a significant increase in revenue, reaching 1.141 billion yuan in Q1 2025, which is a year-on-year growth of 146% [4] - The gross margin and net margin for Q1 2025 were 30.95% and 20.25%, respectively [4] - The company has a strong order backlog, particularly with the ongoing European offshore wind projects, which supports the revenue forecast for 2025-2027 [4] Financial Summary - For 2025, the company is expected to generate revenues of 6.131 billion yuan, with net profits projected at 881 million yuan, reflecting a year-on-year growth of 85.8% [7] - The projected P/E ratios for 2025, 2026, and 2027 are 20.0, 14.8, and 11.5, respectively [7] - The company’s gross margin is expected to improve from 29.9% in 2025 to 31.9% by 2027 [10] Operational Highlights - The company has successfully transitioned to a DAP delivery model, enhancing its service value and profitability [5] - The company’s production base in Penglai is recognized as the largest for the construction of large offshore wind monopiles in the Asia-Pacific region, solidifying its competitive advantage in the European market [6]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Insights - The company achieved its highest quarterly net profit since its listing in Q1 2025, with a net profit of 231 million yuan, representing a year-over-year increase of 336% [4][5] - The company's revenue for Q1 2025 was 1.141 billion yuan, a year-over-year increase of 146% [4] - The gross margin and net margin for Q1 2025 were 30.95% and 20.25%, respectively [4] - The company has a strong order backlog, particularly with the ongoing European offshore wind projects, which supports the revenue forecast for 2025-2027 [4][5] Financial Summary - For 2025, the company is projected to achieve revenues of 6.131 billion yuan and a net profit of 881 million yuan, with corresponding P/E ratios of 20.0 [7] - The company’s gross margin is expected to improve gradually, reaching 31.9% by 2027 [10] - The projected revenue growth rates for 2025, 2026, and 2027 are 62.2%, 23.0%, and 17.2%, respectively [7][10] Operational Highlights - The company has successfully transitioned to a DAP delivery model, enhancing its service value and profitability [5] - The company’s production base in Penglai is recognized as the largest for large offshore wind monopiles in the Asia-Pacific region, solidifying its competitive advantage in the European market [6]

Core Viewpoint - The company has experienced significant growth in revenue and net profit in Q4 2024 due to its "overseas offshore" transformation strategy, with promising prospects in the European offshore wind market driven by increasing government policies [1] Financial Performance - In Q4 2024, the company achieved a revenue of 1.473 billion yuan, a year-on-year increase of 48.55% and a quarter-on-quarter increase of 55.07%, with a net profit of 192 million yuan, a staggering year-on-year increase of 1017.55% and a quarter-on-quarter increase of 77.44% [3] - For the full year 2024, total revenue was 3.78 billion yuan, a decrease of 12.61% year-on-year, primarily due to a reduction in domestic business scale with lower profitability and higher collection risks; however, net profit increased by 11.46% year-on-year to 474 million yuan, benefiting from high-margin export offshore products [3] - The revenue from wind power equipment products was 3.511 billion yuan, accounting for 92.89% of total revenue, down 15.01% year-on-year, while revenue from new energy generation increased by 63.95% to 216 million yuan, accounting for 5.71% [3] - Overseas revenue reached 1.733 billion yuan, a year-on-year increase of 1.07%, with a gross margin of 38.48%, up 11.28 percentage points year-on-year, and overseas revenue accounted for 45.85% of total revenue, an increase of 6.21 percentage points year-on-year [3] Profitability Improvement - The sales gross margin in Q4 2024 was 33.96%, an increase of 13.92 percentage points year-on-year and 8.74 percentage points quarter-on-quarter; the net profit margin was 13.02%, up 11.29 percentage points year-on-year and 1.64 percentage points quarter-on-quarter [4] - For the full year 2024, the sales gross margin was 29.83%, an increase of 6.59 percentage points year-on-year, and the net profit margin was 12.54%, up 2.71 percentage points year-on-year, indicating a significant improvement in profitability attributed to the higher proportion of high-margin overseas business [4] Market Position and Orders - The company has become a qualified supplier for most leading European owners, with sufficient orders on hand [4] - In 2025, the company plans to deliver two specialized transport vessels for offshore wind power equipment, enhancing global logistics competitiveness and reducing transportation costs [4] - The company has successfully entered the European offshore wind market, passing the qualification certification of most leading European owners and forming substantial business cooperation as a primary supplier; there are fewer than 10 global suppliers of offshore wind pile foundations that meet European marine engineering standards, indicating a high concentration [4] - The company holds an unfulfilled order worth 626 million euros for a specific offshore wind farm pile foundation project in Germany, indicating a robust order backlog [4]

Summary of the Conference Call Records Company Overview - The company discussed is **Dajin Heavy Industry**, which operates in the **offshore wind power** sector, particularly in the **European market**. Key Points and Arguments 1. **Financial Performance**: In Q1 2025, Dajin Heavy Industry reported a net profit of approximately **230 million CNY**, with a non-recurring profit of **250 million CNY**, including nearly **50 million EUR** in foreign exchange gains. After excluding these gains and domestic wind farm profits, the combined profit from overseas and domestic operations was about **170-180 million CNY**, aligning with market expectations, marking the company's second consecutive quarter of performance realization [1][5][11]. 2. **European Offshore Wind Market**: The European offshore wind sector is strategic, with a cumulative installed capacity of **285 GW** expected by the end of 2024, of which **37 GW** is offshore. The EU aims to increase the wind power share to **35%** by 2030. Dajin Heavy Industry benefits from the shortage of local production capacity in Europe, being the only Chinese company to report profits [1][6][10]. 3. **Growth Projections**: The average new installed capacity for offshore wind in Europe from 2017 to 2024 is projected at **3 GW/year**, with a lower than expected **2.6 GW** in 2024. However, improvements in approval processes, declining interest rates, and alleviation of power consumption bottlenecks are expected to sustain market growth in the coming years [1][7][8]. 4. **Approval and Capacity Growth**: The approved capacity for offshore wind in Europe for 2024 is about **20 GW**, a nearly **50%** increase year-on-year, with Germany, the UK, and the Netherlands accounting for **17-18 GW**. Cumulative new installed capacity from 2025 to 2030 is expected to reach **47 GW**, averaging **8 GW** annually [1][8][9]. 5. **Market Competition**: The European offshore wind market is concentrated, primarily led by major players like **SAFE** and **EW** in marine foundation manufacturing. A global shortage of marine foundation capacity is anticipated starting in 2028, which will support domestic companies' expansion abroad [1][9]. 6. **Dajin's Competitive Edge**: Dajin Heavy Industry is the only supplier in the Asia-Pacific region to achieve offshore delivery in Europe, having completed significant projects like the **Moray West** in the UK and the **Noi** project in France. The company has enhanced its profitability through the **DAP** model and has secured long-term capacity agreements with European developers [1][3][10]. 7. **Future Earnings Expectations**: Dajin Heavy Industry is expected to achieve profits of **800-900 million CNY** in 2025 and exceed **1.2 billion CNY** in 2026, entering a period of performance realization with high growth potential and certainty. The current market valuation corresponds to a **20x P/E ratio** for this year and **15x** for the next year [1][11]. Additional Important Information - The company faced challenges in Q3 2023, with profits dropping to **135 million CNY** and further declining to **17 million CNY** in Q4 due to project delays and increased costs related to the **Moray West** project. This impacted profits by approximately **90 million CNY** [2][4]. - Dajin's overseas revenue ratio is increasing, from about **50%** in 2023 to **56%** in the first half of 2024, indicating a strategic shift towards international markets [1][11].

Investment Rating - The report maintains a "Recommended" rating for the company, indicating a potential stock price increase of over 15% relative to the benchmark index within the next 12 months [2]. Core Views - The company reported strong Q1 2025 results, with revenue of 1.141 billion yuan, a year-on-year increase of 146.36%, and a net profit of 231 million yuan, up 335.91% year-on-year [1][2]. - The operational quality continues to improve, with the highest quarterly net profit since its listing, driven by record export volumes of offshore engineering products [1]. - The company is focusing on a dual upgrade in production and shipping, aiming to establish a strong presence in the global offshore engineering market [2]. Financial Performance Summary - For Q1 2025, the company achieved a gross margin of approximately 30.95% and a net margin of about 20.25%, with a significant improvement in net margin due to a substantial decrease in financial expenses [1]. - The forecasted revenues for 2025-2027 are 5.895 billion, 7.452 billion, and 9.218 billion yuan, with growth rates of 56%, 26%, and 24% respectively [2][4]. - The projected net profits for the same period are 938 million, 1.244 billion, and 1.601 billion yuan, with growth rates of 98%, 33%, and 29% respectively [2][4]. Production and Shipping Strategy - The company plans to enhance its production capabilities at the Caofeidian offshore engineering base, expected to reach full capacity by 2025 [2]. - It aims to deliver two specialized transport vessels for offshore wind power equipment in 2025, with a long-term goal of establishing a fleet of 10 to 20 large transport vessels [2].

Investment Rating - The report maintains a "Recommended" rating for the company, indicating a potential stock price increase of over 15% relative to the benchmark index within the next 12 months [2][10]. Core Insights - The company reported a significant increase in revenue and net profit for Q1 2025, with revenue reaching 1.141 billion yuan, a year-on-year growth of 146.36%, and a net profit of 231 million yuan, up 335.91% year-on-year [1]. - The operational quality of the company continues to improve, achieving the highest quarterly net profit since its listing, primarily due to record export volumes of offshore engineering products [1]. - The company is focusing on a dual upgrade in production and shipping, targeting the global offshore engineering market, with plans to enhance its production capacity and develop a fleet of specialized transport vessels [2]. Financial Forecasts - Revenue projections for 2025, 2026, and 2027 are 5.895 billion yuan, 7.452 billion yuan, and 9.218 billion yuan, respectively, with growth rates of 56%, 26%, and 24% [2][4]. - The forecasted net profit for the same years is 938 million yuan, 1.244 billion yuan, and 1.601 billion yuan, with growth rates of 98%, 33%, and 29% [2][4]. - The company's PE ratios for 2025, 2026, and 2027 are projected to be 19x, 14x, and 11x, respectively, indicating a favorable valuation trend [2][4].

Core Viewpoint - The financial performance of Dajin Heavy Industry in Q1 2025 shows significant revenue and profit growth, alongside effective cost control, but raises concerns regarding accounts receivable and cash flow management [2][3][4][5][6][7]. Revenue and Profit Growth - The company achieved total operating revenue of 1.141 billion yuan, a year-on-year increase of 146.36% - The net profit attributable to shareholders reached 231 million yuan, up 335.90% year-on-year - The net profit excluding non-recurring items was 246 million yuan, reflecting a year-on-year increase of 448.47% [2]. Cost Control and Expense Optimization - Total expenses (selling, administrative, and financial) amounted to 19.29 million yuan, representing only 1.69% of revenue, a significant decrease of 89.17% compared to 15.62% in the same period last year [3]. Accounts Receivable and Cash Flow - As of the end of the reporting period, accounts receivable stood at 1.488 billion yuan, which is 314.11% of the latest annual net profit - Operating cash flow per share was -0.44 yuan, a decline of 190.05% year-on-year, indicating pressure on cash flow management [4]. Profitability and Capital Return - The gross margin was 30.95%, a decrease of 1.85 percentage points year-on-year - The net profit margin was 20.25%, reflecting a year-on-year increase of 76.94%, indicating improved operational efficiency despite a slight decline in gross margin [5]. Asset and Liability Situation - Interest-bearing liabilities increased from 183 million yuan in the same period last year to 1.507 billion yuan, a rise of 723.29%, suggesting financing needs for business expansion or capital expenditures [6]. Overall Summary - Overall, Dajin Heavy Industry's Q1 2025 performance is impressive with substantial revenue and profit growth and effective cost control, but high accounts receivable and negative cash flow warrant attention regarding financial management and operational efficiency [7].

电站业务持续贡献优质增量盈利。截至2024 年末，公司已投运250MW 辽宁阜新风电场。根据公司公 告，公司唐山250MW 渔光互补项目已于近期完成首批并网，公司预计将于2025 年年中前后完成全容量 并网，我们预计有望进一步增厚发电收益。此外，公司在河北区域也有风电场项目计划后续启动开发建 设。 盈利预测与估值 考虑到公司海外海风项目确收由FOB 切换至DAP 模式，以及公司在手的部分海外海工产品单位盈利有 进一步上修空间，我们分别上调2025/2026年净利润预测28.0%/22.4%至9.00 亿元/11.08 亿元。公司当前 股价对应2025/2026 年19.6/15.9 倍市盈率。我们持续看好公司作为国产海工企业出海引领者，在海外海 风需求高景气周期中持续强化出海业务竞争力，我们维持跑赢行业评级。我们同步上调公司目标价 28.9%至33.9 元，对应2025/2026 年24.0/19.5 倍市盈率，较当前股价有22.5%的上行空间。 风险 1Q25 业绩高于市场预期 公司公布1Q25 业绩：收入11.41 亿元，同比+146.4%，环比-22.6%；归母净利润2.31 亿元，同比 +335.9% ...

Core Viewpoint - Daikin Heavy Industries has achieved significant growth in overseas expansion, with impressive financial results in Q1 2025, indicating a strong position in the offshore wind market [2][3]. Financial Performance - In Q1 2025, Daikin Heavy Industries reported revenue of 1.14 billion yuan, a year-on-year increase of 146.36% [2]. - The net profit attributable to shareholders reached 231 million yuan, up 335.91% year-on-year, while the net profit excluding non-recurring items was 246 million yuan, reflecting a 448.47% increase [2]. - The company's gross margin and net margin for Q1 2025 were 30.95% and 20.25%, respectively, both reaching record highs [3]. Export and Market Position - The company experienced a significant increase in the shipment volume of offshore engineering products, achieving the highest level for the same period in history [3]. - Daikin Heavy Industries has been actively expanding its overseas market share since entering the European offshore wind market in 2019, positioning itself among the top tier of global wind power equipment manufacturers [3]. Yearly Overview - In 2024, Daikin Heavy Industries reported total revenue of 3.78 billion yuan, a decrease of 12.61% year-on-year, while net profit and net profit excluding non-recurring items were 474 million yuan and 433 million yuan, showing increases of 11.46% and 17.7%, respectively [4]. - The company's gross margin and net margin for 2024 were 29.83% and 12.54%, with year-on-year increases of 6.59 and 2.71 percentage points [4]. Domestic vs. Export Business - In 2024, the domestic business segment generated revenue of 2.047 billion yuan, down 21.6%, while export revenue was 1.733 billion yuan, up 1.07% [4]. - The proportion of domestic revenue decreased from 60.36% to 54.15%, while export revenue's share increased from 39.64% to 45.85% [4]. Cash Flow and Assets - The gross margins for domestic and export businesses were 22.5% and 38.48%, respectively, with year-on-year increases of 1.85 and 11.28 percentage points [5]. - Operating cash flow for 2024 was 1.083 billion yuan, a year-on-year increase of 33.97% [5]. - As of the end of Q1 2025, total assets reached 12.746 billion yuan, a 10.24% increase from the previous year, while equity attributable to shareholders was 7.503 billion yuan, up 3.17% [5].

Investment Rating - The report maintains a "Strong Buy" rating for the company [3]. Core Views - The company reported Q1 2025 results that exceeded expectations, with revenue, profit, and net profit increasing by 146%, 336%, and 448% year-on-year, respectively [1][33]. - The company has successfully entered the high-barrier and high-value European offshore wind market, with expectations for domestic onshore and offshore wind businesses to also exceed forecasts [33]. Financial Data and Valuation - Total revenue is projected to grow from 4,325 million in 2023 to 6,020 million in 2025E, reflecting a year-on-year growth of 59% [2]. - The net profit is expected to increase from 425 million in 2023 to 927 million in 2025E, corresponding to a 96% year-on-year growth [2]. - The company’s PE ratio is projected to decrease from 41.6 in 2023 to 19.1 in 2025E, indicating improved valuation metrics [2]. Quarterly Performance Analysis - Q1 2025 saw the highest quarterly revenue and net profit in the last 15 years, with a gross margin of 30.95% and a net margin of 20.25% [7][8]. - The company’s operational segment is expected to contribute approximately 40 million in net profit for Q1 2025 [8]. Business Segment Insights - The company has a robust presence in the European offshore wind market, with a forecasted compound annual growth rate of 36% for offshore wind installations in Europe from 2024 to 2027 [18]. - Domestic onshore wind business is anticipated to exceed expectations, with a significant increase in wind power bidding volumes projected for 2024 [28][29]. Investment Recommendations - The company is expected to achieve net profits of 927 million and 1,196 million in 2025 and 2026, respectively, with a corresponding PE of 19X and 15X [7][33].