Riyue shares (603218)： The wind power casting leader hopes to open up the volume and increase the cycle
Riyue shares (603218): The wind power casting leader hopes to open up the volume and increase the cycle
Key points of investment: 35 years of entrepreneurship, becoming a leader in wind power casting manufacturing.
Founded in 1984, the company is mainly engaged in the research and development, production and sales of wind power castings, plastic machinery castings, diesel engine castings, machining center castings, etc. It is one of the largest foundry manufacturers in China. In 2018, it was awarded the “National Enterprise Technology Center”.
The domestic boom continues, the overseas demand cycle is upward, and the performance growth of wind power casting leaders can be expected.
Driven by factors such as the lifting of the ban in the Three Norths and the rush to install electricity prices, the domestic wind power market will continue to thrive. We expect new installed capacity in 2019/2020 to reach 28GW / 33GW, an increase of approximately 33% / 18%.
Through the global expansion of the bidding policy for wind power, the expansion of offshore wind power and the increasing maturity of wind power technology, the global wind power industry will flourish. GWEC estimates that the global wind power installations for 2019-2022 will be 57.
The downstream of wind power castings is a complete wind turbine manufacturing, so the company will benefit from the prosperity of the wind power industry.
The technology and management leader in the capacity control industry has created the company’s core competitiveness.
The casting industry in which the company is located belongs to the capacity control industry, eliminating backward production capacity. By 2020, the number of foundry companies will be 2 in 2016.
More than 60,000 homes have been reduced to one.
Within 50,000 homes.
In terms of technology, the company’s ductile cast iron technology is leading the industry and has won many honors including the “Second Prize for Scientific and Technological Progress in Zhejiang Province”.
In terms of management, the company’s total restructuring in 201824.
For the first time, 76 was the amount of energy invested by Yongguan in the same period.
85 times, while the company’s average per capita is 93.
38 tons, which is 1 of Yongguan Energy.
The steady expansion of production capacity and the improvement of gross profit margin due to structural adjustment are expected to start the cycle of volume and profit.
With the expected annual output of 18 projects put into operation and technological transformation to improve efficiency, we expect the company’s total production capacity to reach 40/48/55 at the end of 2019/2020/2021, respectively.
In fact, the internalization of outsourced processing, the product structure tends to be large, and the increase in overseas market share will increase the company’s gross profit margin. At that time, the company’s business is expected to enter a stage of rising volume and price.
Investment suggestion: Net profit is expected to be achieved in 2019-2021 respectively5.
22 and 9.
30,000 yuan, an annual increase of 78.
02%, currently expected to be 20, 14, 11 times the corresponding PE for three years, covering for the first time, giving an 成都桑拿网 “overweight” rating.
Risk warning: the risk of rising raw material prices, the risk of customer concentration, production safety and environmental protection risks.