Group 1: Company Pricing Strategy - The company employs a pricing framework based on "material costs + processing fees + profit," while dynamically referencing market competition to determine pricing for downstream customers [1] - The pricing strategy ensures both cost and profit anchoring, while being flexible to market changes through multi-department collaboration, achieving "precise cost calculation + market dynamic response" [1] Group 2: Wind Power Industry Trends - The wind power industry is expected to see positive overall development trends this year, with 2025 being a critical year for accelerating the construction of a new energy system and promoting high-quality energy development [1] - According to the National Energy Administration, the newly installed wind power capacity in the first half of this year reached 51.39 million kilowatts, with onshore wind power accounting for 48.90 million kilowatts and offshore wind power 2.49 million kilowatts [1] - By June 2025, the cumulative installed wind power capacity in the country is projected to reach 573 million kilowatts, a year-on-year increase of 22.7%, with onshore wind power at 528 million kilowatts and offshore wind power at 44.2 million kilowatts [1] - The cumulative wind power generation in the first half of this year was 588 billion kilowatt-hours, representing a year-on-year growth of 15.6%, with an average utilization rate of 93.2% [1] Group 3: Diversification Strategy - The company plans to extend its existing technology into horizontal industry fields to enhance product diversification and strengthen its lifecycle [2] - The company is actively exploring deep-sea wind power business and cutting-edge technologies like floating platforms to adapt to future market trends [2] - The company has conditions to formally market nuclear waste fuel transfer and storage tanks and is closely collaborating with relevant parties for industrialization [2] - In the high-end alloy steel market, the company is developing new materials like high-temperature alloys to optimize and enrich its product line, enhancing its risk resistance [2] - The company aims to accelerate overseas market expansion to enhance its global market share in the wind power sector [2] Group 4: Investment in Joint Ventures - The company has invested in establishing a joint venture, Zhejiang Ningbo Zhuhai Wind Mother Port Equipment Development Co., Ltd., based on its recognition of the future development prospects and value of the offshore wind power industry [2] - This investment aligns with the company's "two seas" strategy (offshore wind power and overseas markets), enhancing its influence and competitiveness in the wind power and casting industries [2] - The investment is expected to help the company explore market potential and promote growth, ultimately maximizing capital appreciation and shareholder interests [2]

Core Viewpoint - The company, Rihua Co., Ltd. (日月股份), is actively engaging with investors to discuss its pricing strategy and future development in the wind power industry, highlighting a positive growth trend and diversification strategies [1][2]. Pricing Strategy - The company employs a pricing framework based on "material costs + processing fees + profit," while dynamically referencing market competition to set prices for downstream customers. This approach ensures both cost precision and market responsiveness, maintaining competitive pricing [1]. Wind Power Industry Trends - The wind power industry is experiencing a favorable development trend this year, with significant growth projected leading up to 2025. As of mid-2023, the total installed wind power capacity in China reached 573 million kilowatts, a year-on-year increase of 22.7%. The average utilization rate for wind power was reported at 93.2% [1]. Diversification Strategy - The company is pursuing a diversification strategy by extending its existing technology into horizontal industry fields, enhancing product variety to strengthen its lifecycle. This includes: - Actively developing deep-sea wind power business and exploring floating platform technologies [2]. - Preparing for the market introduction of nuclear waste fuel transfer and storage tanks [2]. - Developing new materials such as high-temperature alloys to optimize the product line [2]. - Accelerating overseas market expansion to increase global market share [2]. Investment in Subsidiaries - The company has invested in a joint venture, Zhejiang Ningbo Zhuhai Wind Mother Port Equipment Development Co., Ltd., recognizing the future potential of the offshore wind power industry. This investment aligns with the company's strategy to enhance its influence and competitiveness in the wind power and casting sectors [2].

Group 1: 德福科技 (DeFu Technology) - DeFu Technology has acquired Luxembourg Copper Foil, positioning itself among the global leaders in high-end IT copper foil production. Luxembourg Copper Foil, established in 1960, is the only non-Japanese high-end IT copper foil manufacturer globally, with an annual capacity of 16,800 tons. Its core products include HVLP and DTH [1] - The projected revenue for Luxembourg Copper Foil in 2024 is €134 million, with a net profit of -€370,000. In Q1 2025, the expected revenue is €45 million, with a net profit of €1.67 million, indicating a quarterly turnaround [1] - DeFu Technology's total production capacity for electrolytic copper foil has increased to 191,000 tons per year, making it the largest globally. The company plans to enhance its profitability through technology resource integration and has allocated ¥183 million for R&D in 2024, resulting in 17 new invention patents [1] Group 2: 佳驰科技 (Jiachi Technology) - Jiachi Technology is focusing on YS functional structural components in the structural parts sector, with clients including the Aviation Industry Corporation of China. The fundraising projects are aimed at supporting capacity expansion [1] - The company has established the largest YS functional coating material production base in China, meeting current and future demand. It emphasizes technology and customer focus, increasing R&D investment to maintain technological leadership [1] - Jiachi Technology has won multiple significant awards for its research projects and has secured several contracts in the EMMS field, enhancing its testing service capabilities [1] Group 3: 日月股份 (Riyue Co., Ltd.) - Riyue Co., Ltd. employs a pricing framework based on "material cost + processing fee + profit," adjusting prices according to market dynamics. The company is actively expanding into deep-sea wind power and exploring new technologies like floating platforms [2] - The company is also working on the industrialization of nuclear fuel transfer and storage tanks and developing new materials such as high-temperature alloys to optimize its product line and enhance risk resilience [2] - Riyue Co., Ltd. plans to accelerate its overseas market expansion to increase its global market share. The establishment of a joint venture with Zhejiang Ningbo Zhuhai Wind Port Equipment Development Co., Ltd. will enhance its influence and competitiveness in the wind power and casting industries [2] - The company anticipates a positive trend in the wind power industry, projecting that by June 2025, the cumulative installed capacity of wind power in the country will reach 573 million kilowatts [2] Group 4: 长城基金 (Great Wall Fund) - Great Wall Fund, established in 2001, has an asset management scale of ¥347.694 billion across all public funds, ranking 29th out of 210. For non-monetary public funds, the scale is ¥139.427 billion, ranking 37th [3] - The fund manages 235 public funds, ranking 27th, with 37 fund managers, ranking 32nd. The best-performing public fund in the past year is the Great Wall Health Mixed A, with a net value of 1.21 and a growth of 97.6% [3] - The latest public fund product launched is the Great Wall National Index Free Cash Flow A, which is an index-type equity fund, with a subscription period from July 14, 2025, to August 1, 2025 [3]

Core 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].

Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook based on its position in the wind power industry and potential for growth in new business areas [4]. Core Views - The company achieved a revenue of 4.696 billion yuan in 2024, a slight increase of 0.87% year-on-year, with a net profit of 624 million yuan, reflecting a significant growth of 29.55% [1][2]. - The demand for wind power construction is expected to accelerate, benefiting the company as it has established a production capacity of 700,000 tons for casting and 420,000 tons for precision machining [3]. - The company is actively expanding into nuclear power and alloy steel sectors, which could further enhance its growth potential [3]. Summary by Sections Financial Performance - In 2024, the company reported a revenue of 4.696 billion yuan, with a net profit of 624 million yuan, and a proposed cash dividend of 0.35 yuan per share [1]. - The first quarter of 2025 showed a revenue of 1.301 billion yuan, a year-on-year increase of 86.41%, and a net profit of 121 million yuan, up 39.14% year-on-year [1]. Market Demand and Sales - The domestic wind power construction demand showed signs of recovery in 2024, leading to a slight increase in sales volume, particularly in casting products, which grew by 9.58% to 490,400 tons [2]. - The revenue from ductile iron products decreased by 5.30% to 4.266 billion yuan, with a decline in gross margin [2]. Production Capacity and Business Expansion - The company has been steadily advancing its production capacity, with plans to increase precision machining capacity to 540,000 tons, enhancing its integrated delivery capabilities [3]. - The alloy steel business achieved a revenue of 78 million yuan in 2024, marking a growth of 50.71% year-on-year, indicating successful diversification efforts [3]. Profitability and Valuation - The report projects net profits for 2025-2027 to be 702 million, 821 million, and 910 million yuan respectively, with corresponding EPS of 0.68, 0.80, and 0.88 yuan [4][5]. - The current stock price corresponds to a P/E ratio of 17 for 2025, 15 for 2026, and 13 for 2027, suggesting a favorable valuation in the context of expected earnings growth [4].

Investment Rating - The report maintains a "Recommended" rating for the company, considering the gradual release of industry demand and the upcoming realization of new quality production capacity [2][4]. Core Views - The company achieved a revenue of 4.696 billion yuan in 2024, 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, primarily due to investment income from the transfer of power stations [1][2]. - The company is expected to benefit from a significant increase in domestic bidding volume in the wind power sector, projected to grow by 90% in 2024, positioning it well for both volume and profit growth [2]. - The company has developed batch manufacturing capabilities for nuclear fuel transfer and storage tanks and is expanding into the high-end alloy steel market, enhancing its product line [2]. Financial Summary - For 2025, the company is projected to achieve revenues of 6.574 billion yuan, with a growth rate of 40%, and a net profit of 719 million yuan, reflecting a growth rate of 15.2% [4][8]. - The gross profit margin for 2024 was 17.34%, a decrease of 1.32 percentage points year-on-year, while the net profit margin was 13.11%, an increase of 2.83 percentage points year-on-year [2][8]. - The company’s earnings per share are expected to be 0.70 yuan in 2025, with a price-to-earnings ratio of 17 times [4][8].