Riyue HI(SH:603218) 光大证券研究·2025-05-06 09:12Core Viewpoint - The company reported a slight increase in revenue for 2024, driven by a recovery in domestic wind power demand, but faced pressure on profitability due to low wind turbine prices and rising costs in the industry [2][3]. Group 1: Financial Performance - In 2024, the company achieved a revenue of 4.696 billion yuan, a year-on-year increase of 0.87%, and a net profit attributable to shareholders of 624 million yuan, up 29.55% year-on-year [2]. - The first quarter of 2025 saw a revenue of 1.301 billion yuan, representing an 86.41% year-on-year increase, although it decreased by 13.94% compared to the previous quarter [2]. - The net profit for Q1 2025 was 121 million yuan, a 39.14% increase year-on-year, with a slight quarter-on-quarter growth of 2.97% [2]. Group 2: Market and Product Performance - The company experienced a 9.58% increase in sales of casting products, totaling 490,400 tons, while revenue from ductile iron products decreased by 5.30% to 4.266 billion yuan [3]. - The gross margin for the company declined by 1.32 percentage points year-on-year to 17.34% in 2024, and further decreased by 6.24 percentage points to 15.53% in Q1 2025 [3]. Group 3: Capacity Expansion and Future Outlook - The company has established an annual casting capacity of 700,000 tons and a precision processing capacity of 420,000 tons by the end of 2024, with plans to increase precision processing capacity to 540,000 tons [4]. - The company aims to benefit from the accelerated wind power construction in 2025, leveraging its sufficient production capacity [4]. Group 4: Business Diversification - The company is actively expanding into nuclear power and alloy steel sectors, with ongoing research in nuclear fuel storage and high-end alloy steel markets [5]. - In 2024, revenue from the alloy steel business reached 78 million yuan, a year-on-year increase of 50.71%, with a gross margin increase of 1.35 percentage points to 4.73% [5].