DHI(SZ:002487) Guoxin Securities·2024-06-16 07:30Investment Rating - The report assigns an "Outperform" rating for the company, indicating a positive outlook compared to the market [39]. Core Insights - The company's revenue growth is driven by overseas business, while domestic competition in land towers and weak demand for offshore wind towers have negatively impacted performance [1][10]. - The company has a strong cash flow position, with operating cash flow remaining positive from 2019 to 2023, reaching 809 million yuan in 2023 [10]. - The company is well-positioned in the European offshore wind market, with a significant increase in orders and a competitive edge due to low anti-dumping duties [20][38]. Summary by Sections Financial Performance - In 2023, the company achieved a main business revenue of 4.325 billion yuan, with wind tower business contributing 4.146 billion yuan, accounting for 96% of total revenue [25]. - The net profit for 2023 was 425 million yuan, reflecting a decrease of 5.6% compared to the previous year [55]. - The company expects net profits to grow significantly in the coming years, with projections of 646 million yuan in 2024, 930 million yuan in 2025, and 1.319 billion yuan in 2026, representing growth rates of 52%, 43.9%, and 41.8% respectively [55]. Market Position and Strategy - The company has over 20 years of experience in the wind tower and pile market, exporting products to over 30 countries, including major markets in Europe [32][38]. - The company is expanding its production capabilities with new bases in Tangshan and Panjin, aiming to enhance its logistics and manufacturing for offshore wind equipment [27][85]. - The report highlights the expected CAGR of 26% for new offshore wind installations in China from 2023 to 2027, indicating a robust market outlook [31][38]. Competitive Advantages - The company benefits from a strong cost advantage in the offshore wind sector, with established relationships with international clients and a focus on high-capacity manufacturing [20][38]. - The report notes that the company is the first in Asia to export large offshore piles to Europe, positioning it favorably in the global market [32][38]. - The company has a stable management team with extensive experience in production management, contributing to its operational efficiency [14].