The German project increased the contract amount by 79 million euros to gradually verify the continuity of European orders. In May 2023, the company signed the “Preferred Supplier Agreement for Offshore Wind Power Single Pile Foundation” for the offshore wind project in the North Sea region of Germany. The contract amount was about 547 million euros, and 104 sets of offshore wind power towers were delivered. On December 17, 2023, the company announced that the total contract amount was raised to 626 million euros. Based on the exchange rate of the euro to RMB 7.75, the total contract amount after the increase was equivalent to about RMB 4.848 million, and the additional amount was 79 million euros, or about RMB 612 million. As the exclusive supplier, Penglai Daikin will supply a total of 105 single piles and ancillary structures for stages A and B of the project, and construction and delivery of the above single-pile products will begin in 2024. The project is an overseas offshore order with the largest total amount in the supply contract that the company has signed, showing that the company's ability to manufacture and deliver wind power offshore products that meet European offshore regulations and corresponding standards has been further verified. We maintain our original profit forecast. We expect the company to achieve net profit of 6.48/9.47/1,362 billion yuan in 2023-2025, EPS of 1.02/1.48/2.14 yuan, corresponding to the current stock price PE of 23.0/15.7/10.9 times. The company's European layout has a clear first-mover advantage and maintains a “buy” rating.
The delivery of the first European project has been completed. The first-mover advantage of overseas offshore engineering was stabilized in November 2023, and the company delivered the British Moray West project signed in May 2022 as scheduled. A total of 48 oversized single piles were delivered in the six phases. This project is currently the largest single pile product delivered in the world, with a maximum diameter of 10 meters, a maximum weight of nearly 2,000 tons, and a board thickness of 115 mm, all produced by Daikin Heavy Industries's Penglai base. This delivery has had a positive demonstration effect for the continued mass delivery of other European offshore products and the development of other overseas markets. Currently, the company's overseas orders include the British Dogger Bank B project, the French NOY project, and the US Boskalis project. At the same time, the company is participating in the bidding for projects with a volume of about 3 million tons, involving offshore products such as pipe piles, conduit racks, and floating foundations in Europe, Japan, and the United States, and is steadily advancing the global offshore strategy.
Risk warning: Overseas policy changes, offshore wind power project construction falls short of expectations, raw material price fluctuations, risk of increased industry competition, the company's overseas bid winning situation falls short of expectations, and the company's production capacity release falls short of expectations.