Tongyu Heavy(300185)2022-11-21 05:28Production Capacity and Expansion Plans - The company currently has a forging capacity of approximately 220,000 tons, with plans to increase this by an additional 100,000 tons through the implementation of a new project [2][3]. - The new project involves the construction of a large die forging workshop equipped with a 700MN die forging press, aimed at enhancing the production efficiency and quality of key components such as wind turbine main shafts [2][4]. Financial Performance and Material Costs - In 2021, the company's overall gross margin decreased from 23.78% in 2020 to 18.35% due to rising raw material prices and a decline in wind turbine shaft orders [3]. - The gross margin for main products in the first nine months of 2021 was 29.36% for shafts and 16.82% for castings [3]. Market Trends and Product Strategy - The market for cast shafts is growing, but forged shafts remain more stable in performance. The company is monitoring market demand closely and aims to utilize its casting capacity effectively [3][4]. - The offshore wind power sector is expected to grow significantly, with China achieving a new installed capacity of 3.06GW in 2020, representing a year-on-year increase of 22.74% [4]. Competitive Advantages - The company has established a comprehensive manufacturing chain that includes smelting, casting, forging, welding, heat treatment, machining, and large equipment design, enhancing its competitive edge in the wind power market [4]. - The company has developed long-term partnerships with numerous wind turbine manufacturers, which strengthens its market position and customer base [4].