Core Viewpoint - The company, Daikin Heavy Industries Co., Ltd., plans to issue H-shares for overseas listing on the Hong Kong Stock Exchange, driven by rapid growth in its international business and the need to enhance its global strategic layout [2][3]. Group 1: Company Overview - Daikin Heavy Industries is the first listed company in China's wind power tower pile sector and a global leader in offshore wind power infrastructure and tower solutions [2]. - The company specializes in the production and sales of offshore wind single pile foundations, transition pieces, jacket foundations, floating foundations, and tower products, providing a comprehensive solution for offshore wind equipment [2]. Group 2: Business Strategy - The company has been advancing its "Two Seas Strategy," focusing on high technical standards, quality requirements, and high added value in the offshore wind power market of developed countries [2]. - Daikin Heavy Industries has achieved rapid growth in overseas business, securing significant contracts in Europe and making progress in markets such as Japan, South Korea, and Southeast Asia [2]. Group 3: Financial Performance - In 2024, the company expects to achieve export revenue of 1.733 billion yuan, accounting for 45.85% of its total operating revenue for the year [2]. - The company aims to become the market leader in offshore wind power in major developed economies within the next 3 to 5 years [2]. Group 4: Purpose of H-Share Listing - The primary reason for the H-share listing is the significant contribution of overseas business to the company's performance, necessitating a solid global strategic layout [3]. - The funds raised from the H-share listing will be used for business development, including technology innovation, capacity expansion, market expansion, strategic investments, and working capital [3].

Summary of the Conference Call for 威力传动 Company Overview - **Company**: 威力传动 (Weili Transmission) - **Industry**: Wind Power and Gearbox Manufacturing Key Points and Arguments Sales and Production Forecast - **2025 Sales Target**: Expected sales of 60,000 to 70,000 reducers, with revenue projected at 700 to 800 million yuan, a significant increase from over 20,000 units sold last year, indicating a doubling in sales volume [2][7] - **Q3 2025 Expectations**: Anticipated monthly production and sales of 7,000 to 8,000 reducers, marking the peak season for the wind power industry [4] - **2025 Output Forecast**: Expected output of 400 to 600 units for the gearboxes this year [6] Expansion Plans - **Expansion Project**: The gearbox expansion project is expected to reach production status by the end of 2025, with a target capacity of 1,000 to 1,500 units for 2026 [5][8] - **Investment Plans**: Phase one of the expansion involves an investment of 2 billion yuan for a capacity of 1,500 units, while phase two will require 3 billion yuan to reach a total capacity of 4,000 units by the end of 2028 [8][9] Market Dynamics - **Domestic and International Demand**: The gearbox is primarily used in photovoltaic and wind power projects, with current capacity at 70,000 to 80,000 units, and potential for expansion. The overseas market shows high demand and profitability, although the audit cycle is lengthy [10][11] - **Pricing Trends**: The price of gearboxes is influenced by supply and demand dynamics, with expectations of price increases if supply remains tight [33] Profitability and Margins - **Gross Margin Expectations**: The company aims to improve gross margins by approximately 5 percentage points through increased self-manufacturing of components [2][6][12] - **Future Margin Projections**: The gross margin for reducers is expected to stabilize and potentially exceed 20% as production scales up and depreciation impacts diminish [14][22] Competitive Landscape - **Market Position**: The company is positioned as a significant player in the gearbox market, with a focus on maintaining competitive pricing and quality standards [15][19] - **Supply Chain Challenges**: The company faces supply chain issues, particularly in the context of increasing demand for offshore wind power, which may lead to a similar surge in demand as seen in 2020 [16] Talent Retention and Incentives - **Employee Retention Strategy**: The company has initiated a stock buyback program to retain talent, with plans for a second round of incentives expected to begin in mid-2025 [28][29] Non-Wind Power Ventures - **Diversification Efforts**: The company is exploring opportunities in non-wind sectors, including engineering machinery gearboxes and electric motors, although these areas are not currently a primary focus [27] Future Outlook - **Overall Growth Projections**: The company anticipates a strong growth trajectory in the coming years, driven by robust market demand and strategic investments in production capacity [32][34] Additional Important Information - **Employee Growth**: The workforce has expanded from approximately 700 to 1,600 employees, with expectations to reach 1,800 to 2,000 by the end of 2025 [31] - **Project Approvals**: The company has received approvals for several distributed generation projects, which are expected to enhance profitability and improve cost structures [30]

| 团队，能够快速响应客户需求制定出合理、可行、高效的技术方案。 | | --- | | 2、公司增速器产品的优势是什么？ | | 答：风电增速器被誉为"风电装备制造业王冠上的宝石"，是 | | 风力发电机组科技含量最高的核心部件。增速器属于多级传动，其 | | 一般由行星齿轮机构、平行齿轮机构、箱体、轴承、螺栓、销等多 | | 种零部件装配而成。公司研制的增速器具有啮合平稳、噪声小、密 | | 封性能好、效率高、重量轻、成本低等优势，得益于公司领先的技 | | 术与工艺：齿轮使用优质的合金钢材料，采用渗碳淬火、感应淬火 | | 及氮化等热处理工艺，提升齿轮的耐磨性和疲劳寿命；采用数控磨 | | 齿、硬齿面加工等先进工艺，使外齿轮精度可达 5 级、内齿轮精度 | | 可达 7 级，确保低噪音、高效率传动；铸件采用耐低温冲击材料， | | 关键部位 UT 探伤、MT 探伤按照 1 级执行、加工精度可达 5 级。 | | 3、公司是否有计划进一步扩大海外市场？ | | 答：公司在海外市场拓展方面制定了明确且系统的战略规划。 | | 我们已经在多个关键市场设立了全球服务网点，包括德国汉堡、印 | | 度金奈和日本东 ...

Investment Rating - The report assigns a "Buy" rating for the company with a target price of 13.51 CNY, based on a 17x PE for 2025 [5]. Core Views - The company is a global leader in wind turbine manufacturing and wind farm operations, with a dual-driven business model. It has maintained the largest market share in China for 14 consecutive years and ranks first globally for three years [1][13]. - The profitability of wind turbine manufacturing is expected to improve, with a recovery in margins anticipated in 2024 and a potential turnaround to profitability in 2025 [2][43]. - The company has a strong position in both domestic and international markets, with significant growth in wind turbine exports and a leading position in offshore wind projects [2][32][59]. Summary by Sections 1. Company Overview - The company was established in 2001 and has become a leading provider of wind power solutions, with three main business segments: wind turbine manufacturing, wind power services, and wind farm investment and development [1][13]. 2. Wind Turbine Manufacturing - The domestic wind turbine market is stabilizing, with prices recovering from historical lows. The average bidding price for wind turbines has increased from around 1400 CNY/kW in August 2024 to 1590 CNY/kW by March 2025 [34][35]. - The company is expected to see a significant increase in export capacity, with a projected 2.5 GW of new shipments in 2024, marking a 45% year-on-year growth [2][32]. 3. Wind Farm Operations - The company has developed a stable "rolling development" model for wind farms, with a self-operated capacity of 8.0 GW and an additional 4.1 GW under construction as of March 2025 [3]. - The profitability of wind farm operations is expected to remain strong, supported by favorable market conditions and stable pricing mechanisms [3]. 4. Financial Projections - The company anticipates a significant increase in net profit, projecting 3.36 billion CNY in 2025, representing an 80.5% year-on-year growth [4]. - Revenue is expected to grow from 56.7 billion CNY in 2024 to 79.2 billion CNY in 2025, reflecting a 39.73% increase [4]. 5. Market Dynamics - The global wind power market is expected to see substantial growth, particularly in offshore wind projects in Europe and onshore projects in Asia, Africa, and Latin America [29]. - The competitive landscape is shifting towards value competition rather than price wars, with major players focusing on technology and service quality [34].

Investment Rating - The industry investment rating is "Overweight," indicating that the industry index is expected to outperform the market index by more than 10% in the next six months [48]. Core Viewpoints - The report highlights the recent announcement by the National Energy Administration regarding the initiation of hydrogen energy pilot projects in regions rich in wind, solar, hydro, nuclear, and biomass resources. This initiative aims to promote large-scale renewable energy hydrogen production and explore diverse pathways for hydrogen industry development [3][42]. - The report suggests focusing on leading companies in the hydrogen technology sector, as the pilot projects are expected to drive innovation in hydrogen management models and support the entire hydrogen supply chain development [3][42]. Summary by Sections 1. Market Review - As of June 19, 2025, the Shenwan Electric Equipment industry has seen a decline of 1.06% over the past two weeks, underperforming the CSI 300 index by 0.17 percentage points, ranking 11th among 31 industries. Year-to-date, the industry has decreased by 6.44%, lagging behind the CSI 300 index by 4.11 percentage points, ranking 26th [11][15]. 2. Valuation and Industry Data - As of June 19, 2025, the price-to-earnings (PE) ratio for the electric equipment sector is 24.13 times. Sub-sector PE ratios include: - Electric Motor II: 46.20 times - Other Power Equipment II: 39.37 times - Solar Equipment: 16.37 times - Wind Equipment: 32.12 times - Battery: 24.08 times - Grid Equipment: 23.41 times [22][25]. 3. Industry News - The report discusses the National Energy Administration's recent data release indicating that total electricity consumption in May reached 809.6 billion kWh, a year-on-year increase of 4.4%. Cumulative electricity consumption from January to May was 39,665 billion kWh, up 3.4% year-on-year [38]. 4. Company Announcements - The report includes various company announcements, such as share reduction plans by major shareholders and updates on procurement projects, indicating ongoing corporate activities within the sector [41]. 5. Weekly Perspective on Electric Equipment Sector - The report emphasizes the importance of the hydrogen energy pilot projects and suggests that companies with advanced hydrogen technology should be closely monitored for potential investment opportunities [41][42].

Group 1: New Energy Vehicles and Safety Management - The Ministry of Industry and Information Technology and other departments held a video conference to strengthen safety management in the new energy vehicle sector, emphasizing the responsibility of vehicle and battery manufacturers for product quality and safety [2][2][2] - Companies are required to prevent exaggerated and false advertising, avoid "involution-style" competition, and ensure product quality is not compromised for short-term cost reductions [2][2][2] Group 2: Financing and Investment - Yushu Technology has completed its Series C financing round, with a pre-investment valuation exceeding 10 billion yuan, led by funds from China Mobile and Tencent among others [2][2] - Three Flowers Intelligent Control announced the final price for its H-share issuance at 22.53 HKD per share, with the shares expected to be listed on the Hong Kong Stock Exchange on June 23, 2025 [3][3] Group 3: Industry Regulations and Compliance - The Ministry of Commerce stated that China is committed to maintaining the stability and security of global supply chains, expediting the review of rare earth export license applications [2][2] - The China Photovoltaic Industry Association discussed "production limits to maintain prices," indicating a 10%-15% reduction in operating rates for the third quarter and strict controls on below-cost sales [2][2] Group 4: Corporate Announcements - Kweichow Moutai announced a cash dividend of 27.673 yuan per share for the 2024 fiscal year, totaling 34.671 billion yuan for all shareholders, with the record date set for June 25 and payment date on June 26 [2][2] - Ningde Times plans to use up to 4.5 billion yuan of idle fundraising for cash management [7][7]

Group 1 - Chengjian Development received a dividend of 7.1282 million yuan from Beijing Jingcheng Jiaye Property Co., Ltd., in which it holds a 33.47% stake [1] - Shengnuo Bio expects a net profit attributable to shareholders of 77.0275 million to 94.1448 million yuan for the first half of 2025, representing a year-on-year increase of 253.54% to 332.10% [1] - JKN2301 dry mixed suspension has been approved for clinical trials, targeting children with influenza [5][6] Group 2 - Jindawei obtained a patent for a method of purifying natto kinase, with a validity of twenty years [2] - CITIC Guoan plans to increase its stake in China Broadcasting Hunan Company to approximately 5.29% through a capital increase of 278 million yuan [2] - Ji Electric announced the resignation of its general manager, Niu Guojun, due to work changes [3] Group 3 - Xintian Green Energy successfully issued 1.5 billion yuan in green medium-term notes with a term of 3+N years and an interest rate of 2.05% [7] - Hengrun Co. plans to invest 1.2 billion yuan in a project to produce 2,000 sets of wind turbine gearbox components [9] - Pulaide received a government subsidy of 10 million yuan, accounting for 15.87% of its audited net profit for the last fiscal year [10] Group 4 - Boteng Co. passed the EU QP audit, receiving a compliance statement for its CDMO services [12] - Zhou Dasheng added 7 self-operated stores in May, with total investments ranging from 900,000 to 6.5 million yuan [13] - Wantai Bio initiated a Phase III clinical trial for its live attenuated varicella vaccine [15] Group 5 - Shanghai Pharmaceuticals received a drug registration certificate for Pregabalin capsules in Thailand [19] - Sanxing Medical's subsidiary is expected to win contracts worth approximately 143 million yuan from State Grid projects [21] - Jiangsu Huachen plans to issue 460 million yuan in convertible bonds [24] Group 6 - Jian Gong Repair won a soil pollution remediation project worth 32.76 million yuan [25] - Dize Pharmaceutical completed patient enrollment for a global Phase III clinical trial of its drug [26] - Del Co. received acceptance for its application to issue shares for asset acquisition and raise matching funds [27] Group 7 - Beijing Kerui won multiple power grid projects with a total value of approximately 154 million yuan [27] - Xie Chuang Data signed financing lease contracts totaling 498 million yuan with Su Yin Financial Leasing [28] - Meige Intelligent submitted an application for H-share listing on the Hong Kong Stock Exchange [29][31] Group 8 - Aikodi plans to repurchase shares worth 100 million to 200 million yuan for employee stock ownership plans [54] - Kong Kong Industrial intends to sell 80% of Tianyuan Construction to its controlling shareholder [55] - Youyou Green Energy proposed a cash dividend of 12 yuan per 10 shares, totaling 50.4 million yuan [55]

Core Points - The company held its fifth supervisory board meeting on June 19, 2025, via telecommunication, with all three supervisors present [1][2] - The board approved an investment project for its wholly-owned subsidiary, Jiangyin Hengrun Transmission Technology Co., Ltd., to construct a production line for 2,000 sets of wind turbine gearbox components [1] - The total planned investment for the project is 1.2 billion RMB, with the first phase requiring an investment of 500 million RMB [1]

Core Viewpoint - Hengrun Co., Ltd. plans to invest 1.2 billion yuan in a project to produce 2,000 sets of wind turbine gearbox components annually through its wholly-owned subsidiary Hengrun Transmission [1] Investment Details - The total planned investment for the project is 1.2 billion yuan, with the first phase requiring an investment of 500 million yuan [1] - The funding for this project will come from the company's own or self-raised funds, indicating a reliance on internal financing sources [1] - The investment will be made in stages according to the construction progress of the project, highlighting a structured approach to capital allocation [1]

Investment Rating - The report initiates coverage with a "Buy" rating for the company, setting a target price of 40.85 RMB based on a 20x PE for 2026 [4]. Core Views - The company is expected to benefit significantly from the recovery of European offshore wind demand, with a projected doubling of order volume in 2025 compared to the previous year, driven by upcoming project deadlines and favorable market conditions [2][3]. - The company has achieved a market share of approximately 20% in the European monopile market, second only to local leader Sif, and is anticipated to continue increasing its market share due to capacity expansion and green manufacturing initiatives [3][42]. - The company’s revenue and profit forecasts for 2025-2027 indicate substantial growth, with revenues expected to reach 58 billion RMB in 2025, 73 billion RMB in 2026, and 95 billion RMB in 2027, alongside net profits of 960 million RMB, 1.3 billion RMB, and 1.83 billion RMB respectively [4][7]. Summary by Sections European Offshore Wind Market Outlook - The European offshore wind market is experiencing a recovery in project profitability due to declining interest rates and favorable policy adjustments, with a projected installation capacity of approximately 52 GW from 2025 to 2030 [2][13]. - The report estimates that the company could secure between 290,000 to 440,000 tons of monopile orders in 2025 under various market share scenarios [3][64]. Company’s Competitive Position - The company is the only domestic firm to have delivered multiple monopile projects in Europe, achieving a market share of around 20% from 2022 to 2024 [42][46]. - The company’s new production capacity at the Tangshan Caofeidian base is expected to reach 800,000 tons per year, enhancing its ability to meet the large-scale demands of European projects [3][50]. Profitability and Revenue Growth - The company’s revenue is projected to grow significantly, with a forecasted increase of 54% in 2025, followed by 26% and 29% in the subsequent years [4][7]. - The overseas revenue contribution is expected to rise, with a notable increase in profit margins from high-value offshore wind orders [65][70]. Additional Business Developments - The company is actively developing its own marine transport vessels to enhance service value and efficiency in delivering offshore wind products [78]. - The company has secured several renewable energy project indicators, with ongoing projects expected to contribute additional revenue starting in 2025 [80].