SINOLINK SECURITIES·2025-08-24 08:00Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected price increase of over 15% in the next 6-12 months [5]. Core Views - The company reported a revenue of 28.5 billion RMB for the first half of 2025, a year-on-year increase of 41.3%, and a net profit attributable to shareholders of 1.49 billion RMB, up 7.3% year-on-year [2]. - The manufacturing segment showed significant recovery, with sales of wind turbines and components reaching 21.85 billion RMB, a 71.2% increase year-on-year, and a gross margin improvement of 4.22 percentage points [3]. - The company is experiencing strong domestic demand, leading to a notable decrease in expense ratios, with sales, management, and R&D expense ratios down by 0.7, 1.0, and 1.2 percentage points respectively [3]. - The overseas sales reached approximately 8.38 billion RMB, a 75.3% increase year-on-year, with the subsidiary Jin Feng International achieving a net profit of 980 million RMB, up 112% [4]. - The report projects an upward revision of net profit estimates for 2025-2027 to 3.25 billion, 4.4 billion, and 5.04 billion RMB, corresponding to P/E ratios of 14, 10, and 9 times [5]. Summary by Sections Performance Review - In Q2, the company achieved a revenue of 19.1 billion RMB, a 44% year-on-year increase and a 101.3% quarter-on-quarter increase, with a net profit of 920 million RMB, down 12.8% year-on-year but up 61.8% quarter-on-quarter [2]. Operational Analysis - The manufacturing sector's profitability has turned positive for the first time since 2022, driven by a significant recovery in gross margins [3]. - The company’s backlog of orders and contract liabilities grew by 42.9% and 88.4% year-on-year, respectively, indicating strong future revenue potential [3]. Overseas Business Development - The company’s overseas business is expanding rapidly, with a substantial increase in sales and a strong order backlog, suggesting a continued rise in overseas revenue contribution [4]. Profit Forecast and Valuation - The report anticipates a dual recovery in EPS and P/E ratios, driven by the profitability of the wind turbine manufacturing business and its increasing share in the company's profit structure [5].