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Recently, the company signed a long-term cooperation agreement with GE, a leading wind power manufacturer in the world, and received the notice of winning the bid for the Dogger Bank B offshore wind power project sea tower in the agreement. The company received an order for 41 sets of Haliade-X offshore wind towers with a contract value of about 73 million euros (equivalent to RMB 530 million yuan).

Peace viewpoint:

Winning the bid for the largest sea breeze project under construction in the world shows the company's market recognition. 3.6GW, the scale of the Dogger Bank offshore wind power project in the UK, is the winning project of the third round of contract for difference bidding in 2019, and it is also the largest sea wind project that has been completed or under construction in the world. It uses GEHaliade-X series of sea wind units with a unit capacity of 13-14MW, of which Dogger Bank B unit capacity 1.2GW is a part of the Dogger Bank project. GE, as one of the three major overseas wind turbine giants, has strict requirements on the comprehensive strength of its suppliers. The company signed a long-term cooperation agreement with GE and obtained 41 sets of towers for the Dogger Bank B project, further demonstrating the company's recognition in overseas markets. Estimated by the unit capacity of 13-14MW, the project capacity corresponding to 41 sets of towers is about 0.55GW. According to the bid-winning amount, the value of sea breeze towers per GW is estimated to be about 960 million yuan, which is higher than the domestic average level, mainly because the price per ton is higher than that in China.

Since the beginning of the year, the company has received a number of overseas sea breeze orders, and the company has become the mainstream supplier of sea breeze towers / pipe piles in Europe. In the first half of 2022, the company successively won the bid for 48 sets of single piles in the UK Moray West, 30 sets of Moray West transition project, and Boskalis US offshore wind power large steel structure project. Since the second half of the year, the company has successfully won 62 sets of single piles in the French NOY-Ile D'Yeu et Noirmoutier project and 12 sets of tower cylinders in the UK Moray West. Combined with the 41 sets of towers of the successful British Dogger Bank B project, and with reference to the consumption level of single piles and towers of the domestic sea breeze project, it is estimated that the above order size obtained by the company is more than 200000 tons. For a long time, offshore wind power in Europe has shown a duopoly pattern. EEW of Germany and SIF of the Netherlands are the main suppliers of offshore wind piles in Europe. By the third quarter of 2022, SIF has orders of about 300000 tons and delivery is expected to be 170000 tons in 2022; in comparison, the company's offshore wind power related orders this year are large enough to support the company to become the mainstream offshore wind tower / pipe pile supplier in Europe.

With the rapid growth of overseas offshore wind power market, the advantages of domestic pipe pile products are outstanding, and the company is the only professional pipe pile enterprise with pipe pile export capacity in China. Under the influence of factors such as energy security and supply, overseas markets have reached a consensus on vigorously developing offshore wind power in 2022. According to the forecast of the Global Wind Energy Association, the compound growth rate of new offshore wind power installed in overseas markets from 2022 to 2025 is more than 40%. Compared with European enterprises, domestic offshore wind power pipe pile enterprises have obvious competitive advantages, including significantly lower production cost / sales price and stronger delivery capacity, and the technical level and product quality are not lagging behind. Domestic enterprises are the first to achieve batch export in offshore wind power pipe piles. Based on the long-term customer cooperation relationship of onshore tower tube export, Penglai Dajin's superior production conditions and forward-looking pipe pile export strategic layout, the company has become the only professional pipe pile enterprise with batch European sea breeze pipe pile orders in China. In addition, the company continues to strengthen its competitiveness and influence: the layout of new production capacity in Yangjiang, Tangshan, Shantou and other places to enable the Penglai base to face the overseas market with greater production capacity; in November 2022, the company signed a strategic cooperation agreement with Sinotrans Sharon Logistics Co., Ltd., creating a global strategic partnership of cooperation and win-win cooperation, and opening up logistics-related links. In September 2022, the company participated in the wind energy exhibition in Hamburg, Germany, with the aim of further expanding its influence in overseas markets. On the whole, under the background of the further strengthening of overseas demand, the gradual recognition of the company's sea breeze products by overseas customers, and the continuous improvement of the company's own competitiveness, the company's export business of sea breeze products will continue to grow in the future.

Investment advice. To maintain the company's profit forecast, it is estimated that the company's return net profit from 2022 to 2023 is 5.86 and 1.248 billion yuan, corresponding to EPS 1.05,2.25 yuan (not considering the increase in equity caused by future non-public offerings for the time being), and dynamic PE 41.7,19.6 times. Offshore wind power has more room for growth, and the company has the potential to become a global leader in offshore wind power pipe piles, maintaining the company's "recommended" rating.

Risk hint. 1) the progress of the new offshore wind power pipe pile production base is not as expected; 2) the scale of offshore wind power installation is not as expected; 3) the sharp fluctuation of raw material prices and exchange rate fluctuations may affect the company's profitability; 4) the industry competition intensifies and the profitability level is lower than expected.