The company released the 2024 half-year report. Revenue for the first half of the year increased 22.65% year on year to 8.628 billion yuan, net profit to mother decreased 0.54% year on year to 0.147 billion yuan, the company's revenue for the second quarter was 4.876 billion yuan, up 37.23% year on year, 29.94%, and net profit to mother was 76.8227 million yuan, up 3.09% year on year. After years of hard work, the company has become a first-tier machine manufacturer, and overseas business is expected to progress.

A brief analysis of the semi-annual report. The company released the 2024 half-year report. Revenue for the first half of the year increased by 22.65% year on year to 8.628 billion yuan, net profit to mother decreased by 0.54% year on year to 0.147 billion yuan, after deducting non-net profit of 55.8021 million yuan, a year-on-year decrease of 47.68%. In the second quarter of 2024, the company's revenue was 4.876 billion yuan, up 37.23%, up 29.94%, and net profit to mother was 76.8227 million yuan, up 3.09% year on year, up 8.72% month on month, after deducting non-net profit of 15.8519 million yuan, down 70.39% year on year and 60.32% month on month.

In the first half of the year, the company's comprehensive gross profit margin was 13.24%, down 3.67 percentage points year on year, down 1.44 percentage points year on year. Among them, Q2 gross profit margin was 12.66%, down 4.47 percentage points, 1.34 percentage points, net profit margin 1.60%, down 0.59 percentage points, and 0.28 percentage points.

Fan sales increased, and the transfer of power plants contributed to higher profits. Complete machine business: In the first half of the year, the company's fan sales volume was 4049.83 MW, up 19.25% year on year. The fan business revenue was 6.482 billion yuan, up 2.09% year on year; the average sales unit price was about 1,600 yuan/KW, and the gross profit margin was 10.34%, a decrease of 5.52 percentage points year on year. The decline in unit sales prices is mainly related to the continued decline in industry bidding prices. The gross margin of the company's Q2 machine business is expected to decline, and the Q2 machine sector is estimated to lose money. The transfer of power plants contributed about 0.3 billion yuan in gross profit, and the estimated corresponding performance is estimated to be about 0.24-0.25 billion yuan; power generation and other businesses: the estimated contribution performance is about 0.03-0.05 billion yuan.

Entering the frontline, overseas business is expected to progress. In the first half of the year, the company added 14.29 GW of orders. As of June 30, the total number of in-hand orders was 34.2 GW, of which 2-4 MW was 2.16 GW (6%), 4-6 MW was 11.80 GW (35%), 6-8 MW was 12.6 GW (37%), and 7.62 GW (22%) above 8 MW.

A few years ago, the company entered the second tier. With product quality and market reputation, the company ranked the top three in the industry for lifting volume in 2023, ranking in the first tier. According to Wood McKinsey statistics, Yunda Co., Ltd. ranked second in domestic wind power tenders in the first half of 2024. After years of accumulation, the company has entered the first tier.

Overseas, the company won the bid for the 1.345 GW overseas wind power project in 2023, and the overseas bid capacity increased by more than 400% year on year. Currently, the company has received orders in Europe, Central Asia, Southeast Asia, South America and other regions, becoming the first Chinese company to export Chinese wind power technology and standards to overseas markets, and has begun cooperation with major foreign energy groups, and further progress is expected overseas.

Investment advice: Considering the current profit situation of the complete machinery business, the company's net profit for 2024-2025 is expected to be 0.47 or 0.6 billion yuan, corresponding to 15 times and 11 times PE. Maintaining an “Overweight” rating? Risk warning: Profit falls short of expectations, and overseas market demand falls short of expectations.