DHI(SZ:002487) CSC SECURITIES (HK) LTD·2025-08-27 05:58Investment Rating - The report assigns a "Buy" rating for the company, indicating a potential upside of 15% to 35% from the current price [7][10]. Core Insights - The company achieved a significant revenue growth of 109% year-over-year (YOY) in the first half of 2025, reaching RMB 28.41 billion, with a net profit increase of 214% YOY to RMB 5.47 billion [7]. - The company has a strong order backlog, with overseas orders exceeding RMB 10 billion, which is expected to support future growth [7]. - The report anticipates continued growth in net profit for 2025, 2026, and 2027, with projected figures of RMB 11.2 billion, RMB 14.1 billion, and RMB 17.7 billion respectively, representing YOY growth rates of 135%, 27%, and 25% [7][9]. Company Overview - The company operates in the machinery equipment industry, with a focus on wind power equipment, which constitutes 94.5% of its product mix [3]. - As of August 26, 2025, the company's stock price was RMB 33.97, with a target price set at RMB 41 [2][3]. - The company has a market capitalization of RMB 214.32 billion and a price-to-book ratio of 2.79 [3]. Financial Performance - The company reported an earnings per share (EPS) of RMB 0.86 for the first half of 2025, with expectations of increasing EPS to RMB 1.75, RMB 2.22, and RMB 2.77 for the years 2025, 2026, and 2027 respectively [7][9]. - The gross margin for the company was reported at 28.2%, with a decrease in expense ratios due to economies of scale [7]. - The company has maintained a strong cash flow position, with net cash flow from operating activities projected to increase significantly over the next few years [13].