Riyue HI(SH:603218) Tianfeng Securities·2025-05-18 10:45Investment Rating - The report maintains a "Buy" rating for the company, with a target price set at 12.25 CNY and an expected relative return of 10%-20% over the next six months [6][16]. Core Views - The company is positioned as a leading supplier in the wind power casting and injection molding market, benefiting from high growth in wind power installations and significant increases in shipment volumes. The report anticipates a turning point in profitability driven by scale effects [4][2]. - The company achieved a revenue of 4.70 billion CNY in 2024, a year-on-year increase of 0.87%, and a net profit of 623.81 million CNY, reflecting a growth of 29.55% compared to the previous year [1][5]. Financial Performance Summary - In Q1 2025, the company reported a revenue of 1.30 billion CNY, marking an impressive year-on-year growth of 86.41%, with a net profit of 121 million CNY, up 39.14% [1]. - The gross margin for 2024 was 17.34%, a decrease of 1.32 percentage points year-on-year, while the net margin improved to 13.11%, an increase of 2.83 percentage points [3]. - The total operating costs for 2024 were 4.29 billion CNY, up 2.44% from the previous year, primarily due to increased production and depreciation costs [3]. Capacity Expansion and Industry Outlook - As of December 31, 2024, the company has established an annual production capacity exceeding 700,000 tons, positioning itself as a major supplier in the global wind power casting market [2]. - The wind power industry is entering a new growth phase, driven by the implementation of large-scale and lightweight technology, with cumulative bidding volumes reaching new highs [2].