Riyue Co., Ltd. (603218): The volume and price of wind power castings go up

Riyue Co., Ltd. (603218): The volume and price of wind power castings go up

Event: Riyue shares released the semi-annual report for 2019. The report merged and the company realized revenue of 15.

3.7 billion (+ 50% YoY).

04%); realized net profit attributable to mother 2.

150 thousand yuan (+81.

75%); net profit after deduction is returned to the mother 2.

07 million yuan (+96 compared with the same period last year).

40%); net cash flow from operating activities2.

270,000 yuan (+163 compared with the same period last year).

5%); basic profit income 0.

41 yuan / share (yoy + 78.

26%); estimated average return on net assets is 7.

01%, an increase of 2 a year.

81%.

Benefiting from the recovery of the wind power industry, the volume and price of castings have risen, and the gross profit per ton has increased significantly. Since the second half of 2018, the domestic wind power industry has begun to recover strongly. The company’s internal wind power customer orders have increased significantly, and the international market development has progressed smoothly.The business volume of customers such as GE and Vestas increased significantly, and the company’s casting sales reached 14 in the first half of 2019.

9 Initially, it grows by 30 per year.

9%, sales income 15.

18 ppm, an increase of 49 in ten years.

95%; meanwhile, the average unit price of the company’s products has previously increased by 14.

55%, while the company’s main raw material prices are in a high and volatile downward trend, the company’s gross profit margin has continued to improve, and the gross profit per ton has obviously increased by 561 yuan to 2465 南京夜网 yuan.

In terms of business, the wind power industry has benefited from a strong recovery. Wind power castings achieved sales revenue in the first half of this year.

100,000 yuan, an increase of 99 in ten years.

64%, revenue accounted for 79.

73%; engaged in a large-scale adjustment of the automotive industry, the injection molding machine industry has also entered a certain adjustment, the company’s injection molding machine business products in the first half achieved revenue2.

8.3 billion, down 25 a year.

89%, income accounted for 18.

66%.

Accelerating production expansion and consolidating the leading level, the “two seas” strategy has been initially implemented: the company currently has an annual production capacity of 30 foundry castings, forming an annual output of 7.

5 Prototyping of large prototype castings.

In the first half of 2018, according to the market demand and the trend of large-scale wind power products, the company began to invest in the construction of “18 tons (a phase of 10 tons) offshore equipment key components project”.The ability to deliver large-scale offshore wind power castings in large quantities in batches. At the same time, after the first phase of the project is completed, the company will form a casting production scale with an annual output of 40.

In addition, the company has started an annual output of 12 for the casting expansion project, fully addressing the interruption in the production of large-scale offshore wind power castings, and seizing the commanding heights of the rapidly growing offshore wind power market.

In terms of overseas markets, the company has continued to deepen cooperation with customers such as Vestas, GE, Mitsubishi Heavy Industries, and Japan Cast Iron and Steel, and the order volume has continued to increase. After the offshore finishing project is put into production, it will better open up international customers to “One StopThe stringent requirements for “style delivery” provide a sufficient and good foundation for the company to implement the “Double Sea Strategy”.

Investment suggestion: We expect the company’s 19/20/21 revenue to be 35/48/58 trillion, with a growth rate of 48.

77% / 36.

27% / 21.

75%; net profit attributable to mother is 4.

95/6.

83/8.

35 trillion, a growth rate of 76.58% / 37.

76% / 22.

34%.

Covered for the first time, giving the company a Buy-A rating with a 6-month target price of 23.

25 yuan.

Risk warning: wind power installed capacity exceeds expectations, production expansion progress exceeds expectations, and raw material prices have risen sharply.