Summary of the Offshore Wind Pile Industry Conference Call Industry Overview - The offshore wind pile industry is experiencing a turning point in Q2 2025, driven by accelerated project commencement in offshore wind projects, with new construction volume increasing by over 20% year-on-year from January to May, primarily in Guangdong and Jiangsu provinces [1][2] - The domestic offshore wind installation capacity is expected to exceed 10 GW this year and reach 15 GW next year, supported by a robust pipeline of projects nearing 28 GW [1][3] Key Insights and Arguments - The heavy asset nature of the pile segment results in a lower fixed asset turnover rate compared to other segments like submarine cables and wind turbines, with depreciation costs accounting for approximately 15% of total costs [1][3][5] - A significant increase in shipment volume is anticipated, which will dilute unit costs and drive rapid recovery in net profit per ton, leading to substantial year-on-year growth in Q2 performance [1][3] - The deep-sea development trend and the potential of the offshore wind export market are significant growth drivers for the industry [1][6] Market Dynamics - The application ratio of jacket foundations is expected to rise due to their cost-effectiveness in deep-water environments, with widespread adoption in regions like Guangdong and Zhejiang [1][7][8] - The overseas offshore wind market is in its early development stage but has optimistic long-term goals, with expected annual installation capacity exceeding 15 GW in the future, particularly in Europe and the Asia-Pacific region [1][9] Opportunities for Domestic Companies - Domestic companies such as Dajin, Tienshun, and Haili are seizing opportunities in the overseas market, having achieved large-scale order acquisition and actively advancing international projects [2][10] - The current market conditions present a favorable opportunity for investors to focus on leading companies in the offshore wind sector, especially as 2025 is identified as a year of significant growth [2][11] Additional Important Points - The construction peak season from April to October is expected to lead to a noticeable increase in shipment volumes [2][6] - The complexity of jacket production limits new capacity, which is primarily concentrated among leading companies, contributing to a stable industry structure [8]

Investment Rating - The investment rating for the company is "Buy" and is maintained [6]. Core Views - The company reported a significant decline in revenue and profit for 2024, with total revenue of 4.86 billion yuan, down 37.1% year-on-year, and a net profit attributable to shareholders of 200 million yuan, down 74.3% year-on-year [2][4]. - The fourth quarter of 2024 showed a slight revenue decrease of 1.5% year-on-year, with a net loss of 90 million yuan, marking a 215.8% decline [4]. - For the first quarter of 2025, the company achieved revenue of 930 million yuan, down 12.1% year-on-year, and a net profit of 40 million yuan, down 76.0% year-on-year [4]. Financial Performance Summary - In 2024, the company’s revenue breakdown by business segment showed a 49% decline in offshore wind output, leading to a revenue of 430 million yuan, down 72% [10]. - Onshore tower output decreased by 39%, resulting in revenue of 1.67 billion yuan, down 48% [10]. - Blade product revenue fell by 21% to 1.25 billion yuan, with a 19% decrease in blade output [10]. - The power generation segment saw a slight increase in revenue of 2%, totaling 1.27 billion yuan [10]. - The overall gross margin for 2024 was approximately 19.5%, a decrease of 3 percentage points year-on-year [10]. - The company’s capital expenditures for 2024 and Q1 2025 were approximately 880 million yuan and 440 million yuan, respectively, indicating ongoing investment in offshore wind capacity [10]. Future Outlook - The report suggests that Q1 2025 represents the operational low point for the company, with expectations for recovery in Q2 as offshore wind operations ramp up [10]. - The company is also expanding its overseas operations, particularly with the establishment of a base in Germany, which is expected to benefit from increased European demand [10]. - The forecast for 2025 indicates a net profit of approximately 800 million yuan, corresponding to a price-to-earnings ratio of about 15 times [10].