Incident: Goldwind Technology released its 2024 semi-annual report. 2024H1 achieved operating income of 20.202 billion yuan, +6.32% year over year, and realized net profit of 1.387 billion yuan to mother, +10.83% year over year. Among them, Q2 achieved revenue of 13.223 billion yuan, -1.59% year-on-year, and +89.46% month-on-month; realized net profit of 1.054 billion yuan, +6251.60% year-on-year, and +216.94% month-on-month, which is in line with expectations.

The gross margin of fan sales increased year-on-year. During the 24H1 reporting period, the company's wind turbines and components achieved revenue of 12.768 billion yuan, +0.21% year-on-year, gross profit margin of 3.75%, and +6.29pct year-on-year. From January to June 2024, the external sales capacity of the unit was 5.15 GW, or -10.94% compared with the same period last year. Among them, Single Q2 delivered about 3.72 GW of fans.

Ongoing orders are growing steadily to ensure future performance. The company's on-hand orders continued to grow steadily during the 24H1 reporting period. As of June 30, 2024, the total number of orders in the company was 38.4GW, of which the total number of external orders was 35.6GW, +26.40% compared to the same period (11.0GW of successful orders, 24.6GW of orders already signed and pending execution). Among the company's external orders, the order capacity for units below 4 MW is 0.77 GW, accounting for 2%; the order capacity for 4MW (inclusive) - 6MW units is 11.65 GW, accounting for 33%; and the order capacity for units of 6 MW and above is 23.17 GW, accounting for 65%.

The capacity of the flashlight station has been further increased, with a capacity of 3.69 GW under construction. 24H1's wind farm development business achieved revenue of 4.401 billion yuan, +31.49% year-on-year, including power generation revenue of 3.471 billion yuan and power plant product revenue of 0.93 billion yuan. 24H1 added 1.08 GW of domestic and foreign self-operated wind farms and transferred 225 MW of grid-connected capacity. As of the end of the 24H1 reporting period, the company's cumulative global equity grid-connected capacity was 8.14 GW, and the wind farm capacity under construction was 3.69 GW.

Investment advice: The company's net profit for 24-26 is estimated to be 2.247/2.74/3.237 billion yuan, +68.8%/+22.0%/+18.1% year-on-year, and EPS of 0.53/0.65/0.77 yuan, respectively, maintaining the “gain” rating.

Risk warning: wind power installations fall short of expectations; risk of fluctuations in raw material prices