Riyue HI(SH:603218) SINOLINK SECURITIES·2025-08-29 06:35Investment Rating - The report maintains a "Buy" rating for the company, expecting a price increase of over 15% in the next 6-12 months [4][11]. Core Insights - The company reported a revenue of 3.23 billion yuan for the first half of 2025, representing a year-on-year growth of 80.4%, while the net profit attributable to shareholders decreased by 32.7% to 284 million yuan [2]. - In Q2 2025, the company achieved a revenue of 1.93 billion yuan, a year-on-year increase of 76.6% and a quarter-on-quarter increase of 48.0%. The net profit for Q2 was 163 million yuan, down 51.4% year-on-year but up 34.7% quarter-on-quarter [2]. - The increase in revenue was primarily driven by strong demand in the wind power sector, although profit margins were slightly pressured due to low bidding prices in the downstream market [2][3]. Performance Analysis - The company's revenue from ductile iron products reached 2.82 billion yuan, up 66.0% year-on-year, with a gross margin of 17.38%, down 1.91 percentage points from the previous year [2]. - The sales gross margin for Q2 was 15.9%, showing a slight improvement of approximately 0.4 percentage points from Q1 [2]. - The company expects continued strong demand in the wind power sector, which may lead to improved capacity utilization and a slight recovery in profitability in the second half of the year [2]. Financial Forecasts - The forecasted net profits for the company from 2025 to 2027 are 680 million yuan, 840 million yuan, and 973 million yuan, respectively, with corresponding P/E ratios of 20, 16, and 14 times [4]. - The projected revenue growth rates for the years 2025 to 2027 are 46.5%, 5.52%, and 8.39%, respectively [8].