Riyue HI(SH:603218) Guoxin Securities·2024-03-28 16:00Investment Rating - The investment rating for the company is "Buy" [2][3]. Core Views - The company is a leader in the casting industry, continuously reducing costs and increasing efficiency while actively exploring high-value-added markets [6]. - The company has been involved in the nuclear fuel container sector for years, and a recent equity transfer is expected to enhance its performance in 2024 [7][8]. - The demand for wind power is expected to recover in 2024, with domestic offshore wind installations projected to reach 10 GW, and overseas demand anticipated to rebound significantly in 2025-2026 [9][22]. Summary by Sections Company Overview - The company, 日月股份 (Dayun Co., Ltd.), is a leading player in the wind power casting market and is actively expanding into other sectors such as nuclear power and electric vehicles [9][11]. Financial Performance - The company expects to achieve revenues of 47.71 billion, 54.55 billion, and 64.17 billion yuan for 2023, 2024, and 2025 respectively, with year-on-year growth rates of -1.9%, 14.3%, and 17.6% [9][25]. - The projected net profit for the same years is 4.96 billion, 7.17 billion, and 8.62 billion yuan, reflecting growth rates of 44.0%, 44.5%, and 20.3% [9][25]. Market Position and Strategy - The company is leveraging its casting technology to expand into new markets, including steel casting and integrated die-casting machines for electric vehicles, with significant sales growth expected in 2024 [23]. - The company is implementing various measures to reduce costs and improve efficiency, solidifying its position as a leader in the casting industry [32]. Future Outlook - The company is expected to benefit from the recovery in wind power demand and the successful execution of its strategic initiatives, including the transfer of equity in its renewable energy projects [9][25].