Sany Renewable Energy (SH:688349) Guotou Securities·2024-09-25 08:03Investment Rating - The investment rating for SANY Renewable Energy is "Buy - A" with a 12-month target price of 29.12 CNY [3]. Core Views - The wind turbine business has shown significant revenue growth, with a year-on-year increase of 68.1% in wind turbine and accessory revenue, reaching 49.17 billion CNY, which constitutes 93.13% of total revenue [2]. - The company has a robust order backlog, with a total of 15.89 GW of orders as of the end of 2023, supporting sustained revenue growth [2]. - The company's profitability is expected to improve in the second half of 2024, driven by a recovery in gross margin and a reduction in competitive pressure [2][7]. Summary by Sections Financial Performance - In the first half of 2024, SANY Renewable Energy achieved operating revenue of 52.08 billion CNY, a year-on-year increase of 34.88%, and a net profit of 4.34 billion CNY, up 46.92% [1]. - The gross margin and net margin for the first half of 2024 were 16.01% and 8.21%, respectively, reflecting a decline compared to the previous year due to increased competition and delays in project transfers [2][6]. Market Position and Growth - The company outperformed the industry, with domestic land wind sales reaching 3.3 GW, a year-on-year increase of 121%, marking the best delivery performance for the same period [2]. - The trend towards larger wind turbines is evident, with revenue from turbines of 5 MW and above increasing by 173.85% year-on-year, accounting for 80.82% of total revenue [2]. Future Outlook - Revenue projections for 2024-2026 are estimated at 184.2 billion CNY, 230.3 billion CNY, and 284.6 billion CNY, with growth rates of 23.3%, 25%, and 23.6%, respectively [7]. - The net profit for the same period is expected to be 21.1 billion CNY, 25.4 billion CNY, and 30.4 billion CNY, with growth rates of 5.3%, 20%, and 19.8% [7].