Riyue HI(SH:603218) EBSCN·2025-09-02 07:47Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook based on strong performance and growth potential in the wind power sector [3]. Core Viewpoints - The company reported a significant increase in revenue, achieving 3.226 billion yuan in the first half of 2025, a year-on-year growth of 80.41%. However, the net profit attributable to shareholders decreased by 32.74% to 284 million yuan [1]. - The domestic wind power construction is accelerating, with a 98.88% year-on-year increase in new grid-connected capacity, which has positively impacted the company's main business revenue [1]. - The company is actively expanding its nuclear power and alloy steel businesses, which are expected to contribute to future revenue growth [3]. - Cost reduction measures have led to a decrease in expense ratios, enhancing the company's profitability [2]. Summary by Sections Financial Performance - In H1 2025, the company achieved a revenue of 3.226 billion yuan, with a 76.58% year-on-year increase in Q2. The gross profit margin for ductile iron products decreased by 1.90 percentage points to 17.38% [1][2]. - The company’s alloy steel business generated revenue of 34 million yuan in H1 2025, reflecting a 4.34% year-on-year growth [3]. Cost Management - The sales expense ratio, management expense ratio, and R&D expense ratio were 0.17%, 3.02%, and 4.63%, respectively, all showing a decline compared to the previous year [2]. Capacity Expansion - As of June 2025, the company has established an annual casting capacity of 700,000 tons and a precision machining capacity of 420,000 tons, with plans to further increase precision machining capacity [2]. Future Outlook - The company is expected to benefit from the high demand in the wind power sector and the ongoing expansion of its new business areas, which will likely drive future earnings growth [3]. - Profit forecasts for 2025-2027 are 702 million yuan, 821 million yuan, and 910 million yuan, respectively, with corresponding EPS of 0.68, 0.80, and 0.88 yuan [4].