Investment Rating - The investment rating for the company is "Buy" [6] Core Views - The company has exceeded performance expectations with significant growth in offshore wind product profitability, driven by an increase in export orders and a strategic shift towards international markets [1][2][3] - The company is positioned as a leader in the offshore wind tower and pile market, with forecasts indicating substantial profit growth in the coming years [4] Financial Performance Summary - For the year 2024, the company reported revenue of 3.78 billion, a decrease of 12.6% year-on-year, while net profit attributable to shareholders was 474 million, an increase of 11.5% year-on-year [1] - In Q1 2025, the company achieved revenue of 1.141 billion, a remarkable increase of 146.36% year-on-year, and net profit attributable to shareholders reached 231 million, up 335.91% year-on-year [1] - The gross margin for 2024 was 29.83%, an increase of 6.4 percentage points year-on-year, while the net margin was 12.54%, up 2.7 percentage points year-on-year [1] Export and Market Strategy - The company has seen a significant increase in the proportion of revenue from export marine engineering products, with a gross margin of 38.5% for the year, reflecting a strategic pivot away from less profitable domestic operations [2] - The establishment of three major export marine engineering bases has been completed, targeting the global marine engineering market [2] New Energy Sector Growth - The new energy generation business reported revenue of 220 million, a growth of 64.0% year-on-year, with a gross margin of 78.5%, primarily driven by the profitability of a 250MW wind power project [3] - The company has plans for further development in the new energy sector, including a 1GW wind power project in Hebei [3] Future Profitability Forecast - The company is projected to achieve net profits of 898 million, 1.181 billion, and 1.514 billion for the years 2025, 2026, and 2027 respectively, with corresponding P/E ratios of 19.5, 14.8, and 11.6 [4][5]

Group 1 - The registration of wind power-related companies in China has increased by 7.28% in the first two months of this year, with a total of 0.63 million companies registered so far [1][2] - The total number of existing wind power-related companies in China is 116,600, with a projected annual registration of 33,300 companies in 2024, reflecting a year-on-year growth of 13.82% [1][2] - The peak registration year in the last decade was 2021, with 14,700 companies registered, marking a significant year-on-year increase of 77.84% [2] Group 2 - Over 60% of the wind power-related companies have been established within the last three years, with the majority (35.47%) being 1-3 years old [3] - Companies established within one year account for 27.52%, while those over ten years old represent only 7.46% [3] Group 3 - The largest proportion of wind power-related companies belongs to the scientific research and technical services sector, accounting for 32.48% [4] - The wholesale and retail sector follows with 26.52%, while the electricity, heat, gas, and water production and supply sector accounts for 12.45% [4] - Additionally, these companies are also present in various other sectors, including construction and manufacturing [4]

Investment Rating - The industry investment rating is maintained as "Add" [5] Core Viewpoints - Domestic offshore wind projects are accelerating, and domestic companies are expanding overseas. The Shenneng Hainan CZ2 offshore wind power demonstration project has completed its main engineering work, with a planned capacity of 1,200 MW, and the first phase has a capacity of 603 MW. Additionally, the Cangnan No. 5 offshore wind project has been approved with a planned capacity of 800 MW [1][67] - The wind power installed capacity in China reached 79.34 GW in 2024, representing a year-on-year growth of 4.5%. The total installed capacity of wind power in China reached 520 million kW by the end of 2024, with a year-on-year increase of 18.0% [2][26] - The approval of wind power projects in 2024 totaled 103.41 GW, a year-on-year increase of 63.24%, with onshore wind projects accounting for 87.55 GW and offshore wind projects for 14.62 GW [2][44] Summary by Sections Market Performance Review - The electric power equipment sector experienced a weekly change of 1.12%, ranking 18th among 31 first-level industries in terms of performance [2][11] - The wind power equipment sub-sector had a weekly change of 0.09%, indicating a middle-range performance [15] Wind Power Industry Chain Tracking - The total installed capacity of wind power in China reached 520 million kW by the end of 2024, with an increase of 79.34 GW in new installations for the year [26][31] - The average utilization rate of wind power in 2024 was 95.9%, with wind power generation accounting for 10.1% of the total electricity consumption [31][36] Investment Recommendations - Companies benefiting from the demand for offshore wind power and the development of deep-sea wind projects include Dongfang Cable, Haili Wind Power, Qifan Cable, and Yaxing Anchor Chain [3][68] - Companies with strong capabilities in expanding overseas markets include Dajin Heavy Industry, Taisen Wind Energy, and Zhenjiang Co., Ltd. [3][68] - Wind turbine manufacturers with recovering profitability include Mingyang Smart Energy, Goldwind Technology, Sany Heavy Energy, and Yunda Co., Ltd. [3][68]