Tongyu Heavy(SZ:300185)2022-11-21 15:40Group 1: Company Overview and Production Capacity - Tongyu Heavy Industry is a leading manufacturer in the wind power sector, focusing on high-end equipment and key components [2][3] - The company plans to enhance its forging capacity by constructing a new workshop and installing a 700MN large die forging press, aiming to increase its annual forging capacity by 100,000 tons [3][4] - Current forging capacity is approximately 220,000 tons, with a projected increase post-project completion [3][4] Group 2: Market Position and Competition - In the wind power spindle market, domestic products have largely replaced imports, with major competitors including Tongyu Heavy Industry and Jinlei Co., Ltd. [3][4] - The company produced about 150,000 tons of wind power spindles in 2020, accounting for approximately 60% of its total forging capacity [3][4] - The market for wind power castings is also competitive, with Tongyu Heavy Industry holding a significant share [4][6] Group 3: Financial Performance and Challenges - The company's gross profit margin decreased from 23.78% in 2020 to 18.35% in the first nine months of 2021, primarily due to rising raw material costs [5][7] - The gross profit margin for wind power spindles was reported at 29.36%, while castings had a margin of 16.82% [5][7] - The company is facing challenges from increased production costs and a decline in orders due to market adjustments [6][7] Group 4: Future Outlook and Strategic Initiatives - The company anticipates continued growth in the wind power sector, supported by government policies promoting renewable energy [6][7] - Plans include enhancing production capabilities for offshore wind components, with a new project aimed at increasing production capacity for large offshore wind structures to 360 sets annually [7] - The company is committed to improving product quality and reducing costs to maintain competitiveness in the market [5][7]