Investment Rating - The report maintains a "Recommended" investment rating for the company, indicating an expectation of stock performance that will exceed market performance by 10% to 20% over the next six months [9]. Core Views - The company is expected to benefit from strong terminal demand, with both volume and profit anticipated to rise. The wind power sector is projected to see significant growth, with domestic wind turbine bidding expected to reach 164.1 GW in 2024, a 90% year-on-year increase [6][7]. - The company's revenue for 2024 is projected at 4.696 billion yuan, a slight increase of 0.87% year-on-year, while net profit attributable to shareholders is expected to grow by 29.55% to 624 million yuan [3][5]. - The report highlights the company's strategic focus on expanding its product offerings and entering new markets, particularly in the nuclear waste storage sector and special alloy steel products [7]. Summary by Sections Financial Performance - In 2024, the company achieved a revenue of 4.696 billion yuan, with a net profit of 624 million yuan, reflecting a 29.55% increase year-on-year. The first quarter of 2025 showed a significant revenue increase of 86.41% year-on-year, reaching 1.301 billion yuan [3][5]. - The company’s gross margin for 2024 is projected at 17.3%, with a net margin of 13.3% [5][8]. Production and Capacity - The company has established a casting capacity of 700,000 tons and precision processing capacity of 420,000 tons, with expectations for improved capacity utilization in 2025 [6][7]. - The report notes that the company sold 490,400 tons of castings in 2024, a 9.58% increase year-on-year, despite a slight decline in profitability due to increased competition and price drops in the wind power casting sector [6]. Market Outlook - The wind power industry is expected to experience a recovery, with the company’s wind power casting business projected to rebound as demand increases and prices stabilize [7]. - The report anticipates that the company will continue to optimize its product structure, focusing on larger products and international clients, which could enhance profitability [6][7].