Halma Technology (002595) In-Depth Report-Strong Wind Power Demand, Competitive Advantage Extends New Field

Halma Technology (002595) In-Depth Report-Strong Wind Power Demand, Competitive Advantage Extends New Field

Halma Technology (002595) In-Depth Report-Strong Wind Power Demand, Competitive Advantage Extends New Field
Introduction to this report: The wind energy price is approaching, and funding for the wind power casting industry is sought.The company’s competitive advantage extends from molds to wind power castings, and new business grows rapidly. Key points of investment: Conclusion: The coming of wind price and rapid increase of installed capacity; seeking funding for wind power casting industry, expected volume and price to rise.The company’s competitive advantage is extended, and its production capacity is expected to further increase in the future, benefiting from the expansion of wind power demand.We maintain our judgment that the EPS for 2019-21 will be 1.13, 1.29, 1.45 yuan, maintaining a target price of 25.8 yuan, the increase of wind can be priced, the wind power casting industry for alternatives.① The advent of wind energy prices, increasing installed capacity to promote rapid growth.Construction costs have dropped, wind power has been replenished, and grid parity has been introduced.GWEC expects that in the next two years, the global wind power installations are expected to increase to more than 65GW; in 2019, the global new installations will increase by 27%.② The demand for wind power castings is gradually increasing, and the average annual market size is 10 billion yuan.The wind power casting industry will put forward the pursuit of expectation, which is expected to usher in both volume and price.③ The global wind power casting production capacity is concentrated in China, and the competition pattern has improved marginally. The extension of competitive advantages, from molds to wind power castings, new business has grown rapidly.① The company’s competitive advantage extends from molds to gas turbines to 杭州桑拿网 wind power castings.The tire mold business is thriving, and its profitability has significantly surpassed its peers.The company integrates casting and processing, and through the accumulation of customers of gas turbine parts processing, it has further obtained wind power casting orders from GE and Siemens, mainly producing wheels, bases and other products. ② The marginal improvement of the competition pattern of wind power castings. The company’s current market share is about 5%, the throughput is constantly increasing, and the demand for wind power is expanding.③ The marginal impact of future cost increases is limited, and gross margin is expected to stabilize and recover.Compared to molds, the company’s casting and large-scale parts processing business is more sensitive to the cost of raw materials, and the profit outlook is repaired. Catalyst: Obtain orders from major global customers. Core risks: risks of fluctuations in raw material prices and risks of exchange rate fluctuations.