Incident: On October 30, 2024, the company released its 2024 three-quarter report. With the rapid development of the business, the competitiveness of the company's fan products increased, fan sales increased over the same period last year. The first three quarters of 2024 achieved revenue of 9.068 billion yuan, an increase of 21.06% year on year; net profit to mother was 0.685 billion yuan, down 33.55% year on year; net profit from non-return mother was 0.612 billion yuan, down 18.61% year on year.

Looking at a single quarter, 24Q3's revenue was 3.788 billion yuan, up 5.93% year on year and 6.62% month on month; net profit to mother was 0.251 billion yuan, up 17.56% year on year and 49.76% month on month; net profit without return to mother was 0.224 billion yuan, up 228.69% year on year and 47.92% month on month.

Q3 Profitability is basically stable, and the expense ratio has declined. In terms of profitability, gross margin for the first three quarters of 24 was 15.53%, down 4.15 pcts year on year; net margin was 7.55%, down 6.21 pcts year on year. Looking at a single quarter, 24Q3 gross margin was 14.85%, down 0.05 pcts year on year and 0.63 pcts month on month; net margin was 6.63%, up 0.66 pcts year on year and 1.91 pcts month on month. In terms of cost ratio, the fee rate for the first three quarters of 24 was 13.73%, down 6.33 pctst year on year.

Multiple orders were signed, and overseas markets continued to break through. The company once again achieved a breakthrough in overseas markets. The holding subsidiary Sany Wind Energy India has signed sales contracts for a total of 1324MW wind turbines with JSW Renew EnergyThree Limited, JSW Renew Energy Nine Limited, and JSW Renew Energy Eight Limited, three subsidiaries of India's JSW Group, and Green InfraRenewable, an Indian subsidiary of Singapore Semco Group Projects Limited signed a 300MW wind turbine sales contract, totaling 1624MW.

Investment advice: Considering the demand in the wind power industry, the company is expected to further increase its market share with its technical cost advantage and overseas forward-looking layout. We expect the company's 2024-2026 revenue of 18.1/23.7/26.3 billion yuan, and net profit of 2/2.7/3.1 billion yuan. The current price corresponds to 2024-2026 PE of 18/14/12X, maintaining the “recommended” rating.

Risk warning: Market development falls short of expectations; raw material prices fluctuate greatly, etc.