Riyue HI(SH:603218) Guoxin Securities·2025-09-09 08:25Investment Rating - The investment rating for the company is "Outperform the Market" [5] Core Views - The company achieved significant revenue growth in the first half of 2025, with a revenue of 3.226 billion yuan, up 80.41% year-on-year, but faced a decline in profitability due to a decrease in gross margin [1][7] - The wind power industry's high demand contributed to the revenue increase, while low-margin pig iron exports impacted profitability [1][19] - The company is actively enhancing its product delivery capabilities through the construction of an "integrated delivery" supply chain [20] Summary by Sections Financial Performance - In the first half of 2025, the company reported a net profit of 284 million yuan, down 32.74% year-on-year, while the non-recurring net profit was 259 million yuan, up 69.98% [1][7] - The gross margin for the first half of 2025 was 15.74%, a decrease of 3.40 percentage points year-on-year, and the net margin was 8.52%, down 15.05 percentage points year-on-year [1][7] - In Q2 2025, the company achieved a revenue of 1.925 billion yuan, up 76.58% year-on-year and 48.03% quarter-on-quarter [19] Product Segmentation - The company’s ductile iron products generated a revenue of 2.823 billion yuan, up 66.00% year-on-year, with a gross margin of 17.38%, down 1.90 percentage points [2][19] - The mold products saw a revenue increase of 530.20% year-on-year, reaching 54 million yuan, but with a significant drop in gross margin [2][19] - The company is making progress in the nuclear power and alloy steel sectors, successfully developing special materials for casting products [20] Capacity and Strategy - As of the first half of 2025, the company has established a casting capacity of 700,000 tons and precision processing capacity of 420,000 tons [20] - The company is focusing on enhancing its product structure and has developed capabilities for batch delivery in the nuclear power sector [20] Profit Forecast - The profit forecast for the company has been adjusted downwards, with expected net profits of 677 million yuan, 937 million yuan, and 1.212 billion yuan for 2025, 2026, and 2027 respectively, reflecting year-on-year growth of 9%, 39%, and 29% [3][21]