DHI(SZ:002487) CSC SECURITIES (HK) LTD·2025-07-09 06:07Investment Rating - The report assigns a "Buy" rating for the company, indicating a potential upside in the stock price [4][7]. Core Insights - The company is expected to achieve a net profit of RMB 5.1-5.7 billion for the first half of the year, representing a year-over-year increase of 193%-228%, which exceeds expectations [7][8]. - The growth in net profit is primarily driven by a significant increase in overseas project deliveries, with expectations for over 200,000 tons of overseas deliveries this year [8][10]. - The report anticipates a robust growth trajectory for the company, with projected net profits of RMB 10.7 billion, RMB 13.6 billion, and RMB 17.1 billion for 2025, 2026, and 2027 respectively, reflecting year-over-year growth rates of 125%, 28%, and 26% [8][10]. Company Overview - The company operates in the machinery equipment industry, with a focus on wind power equipment, which constitutes 93% of its product mix [3][4]. - As of July 8, 2025, the company's stock price was RMB 33.91, with a market capitalization of RMB 213.95 billion [3]. Financial Performance - The company reported a significant increase in earnings per share (EPS), with estimates of RMB 0.8-0.89 for the first half of the year and RMB 1.68, RMB 2.14, and RMB 2.68 for 2025, 2026, and 2027 respectively [7][12]. - The projected price-to-earnings (P/E) ratios for 2025, 2026, and 2027 are 20, 16, and 13 times, respectively, based on current stock prices [10]. Market Dynamics - The European offshore wind construction market is accelerating, with the UK and Germany announcing measures to support wind power projects, which is expected to benefit the company significantly [8][10]. - The company has established strong relationships with leading clients in Europe and is positioned to expand its market share in the region due to a supply-demand imbalance in the local supply chain [10].