Gelonghui, July 11. Guoxin Securities reported on the 10th that Tongyu heavy Industry (300185.SZ) is a leader in R & D and manufacturing of key wind power components, accounting for more than 40% of revenue in 2022. At present, the income of spindle, hub base and wind power assembly is more than 1 billion yuan, each accounting for about 1/3 of wind power business revenue. The wind power business is expected to maintain revenue growth of about 15 per cent a year. The company has mastered mature smelting, die forging, casting and other processes, and has a broad downstream market. Demand rebounded and major price cuts, and gross profit margins were steadily repaired in 2023. In the first quarter of 2023, the company has achieved a comprehensive gross profit margin of 19%, an improvement of 5 percentage points compared with the same period last year. In the future, with the development of China's nuclear power, pumping, shipbuilding and other industries, the optimization of the company's product structure will bring more room for profit improvement. The bank believes that the reasonable valuation range of the company's share price is 2.92-3.13 yuan, corresponding to a dynamic PE range of 29-31 times in 2023, a premium of 8% to 16% over the company's current share price. Coverage for the first time, giving a "overweight" rating.