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].