Analysis of Financial Status and Technology Roadmap of Mingyang Smart Energy (601615.SS)

According to public financial data, Mingyang Smart Energy has indeed experienced a significant performance decline [0]:

Year	Operating Revenue (RMB 100 million)	Net Profit (RMB 100 million)	Net Profit Margin	ROE
2021	272.6	31.0	11.37%	18.5%
2022	252.5	34.2	13.55%	17.8%
2023	278.5	3.1	1.11%	1.8%
2024	360.0	3.3	0.92%	1.15%

1. Plummeting Net Profit
   : From the 2022 peak of RMB 3.42 billion to RMB 310 million in 2023, a drop of
   90.9%
   , and only recovered to RMB 330 million in 2024, showing a weak recovery trend after two consecutive declines [0]

2. 持续恶化的盈利能力
   : Net profit margin fell from 13.55% in 2022 to 0.92% in 2024, a drop of more than
   12 percentage points
   , ROE fell from 18.5% to 1.15%, a drop of
   93.8%
   [0]

3. Revenue Growth vs Profit Divergence
   : 2024 revenue increased by 29.3% year-on-year, but net profit only increased by 6.5%, reflecting huge cost-side pressure

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Semi-direct drive technology (also known as “medium-speed permanent magnet” technology) is Mingyang Smart Energy’s

, combining the advantages of direct drive and double-fed technologies:

• Direct drive unit
  : No gearbox, high reliability, but large volume and high cost
• Double-fed unit
  : With gearbox, small volume and low cost, but complex maintenance
• Semi-direct drive solution
  : Adopts medium-speed permanent magnet generator + one-stage gearbox, seeking a balance between
  reliability and cost
  [0]

• Compared with traditional direct drive, semi-direct drive units
  reduce weight by about 30%
  , more suitable for high-power offshore wind turbines
• Compared with double-fed units,
  permanent magnet generators
  do not require excitation current and have higher efficiency
• Mingyang Smart Energy has
  deep patent layout and technical accumulation in the semi-direct drive field

1. Insufficient Market Awareness
   : Direct drive technology route dominated by Goldwind Technology and double-fed technology adopted by international giants like Vestas are still mainstream; semi-direct drive is a “non-mainstream” route [0]

2. Industrial Chain Supporting Issues
   : The supply chain for
   medium-speed permanent magnet generators
   required for semi-direct drive is relatively niche, with insufficient scale effects

3. Technology Route Controversy
   : Some views believe that semi-direct drive is a “transitional solution”, neither having the reliability advantage of direct drive nor avoiding the maintenance pain points of gearboxes

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1. Overall Pressure on Wind Power Industry
   : Domestic wind power bidding volume dropped sharply in 2023; industry overcapacity led to intensified price wars

2. Continuous Decline in Wind Turbine Prices
   : Onshore wind turbine prices dropped from about RMB 2,500/kW in 2021 to about RMB 1,500/kW in 2024, a drop of
   more than 40%

3. Asset Impairment Pressure
   : The company adopts conservative accounting policies; high depreciation/capital expenditure ratio reflects heavy asset operation pressure [0]

4. Deteriorating Cash Flow
   : Latest data shows free cash flow is
   -RMB 8.05 billion
   , negative cash flow exacerbates financial risks [0]

Dimension	Evaluation
Technical rationality	Medium-speed permanent magnet technology still has value in the field of high-power turbines, especially offshore wind power
Market acceptance	Semi-direct drive has certain applications in domestic offshore wind power projects, but with limited share
Competitive landscape	Goldwind (direct drive) and Envision (double-fed) dominate; Mingyang competes with differentiation
Development Prospects	Depends on large-scale development of offshore wind power and speed of cost reduction

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1. Excessively High Valuation
   : Current P/E ratio of 102.55 times is seriously inconsistent with ROE of only 1.15% [0]

2. Uncertainty in Profit Recovery
   : 2024 net profit only increased slightly by 6.5%, and the performance inflection point has not been confirmed

3. Technology Route Risk
   : If the industry mainstream shifts to pure direct drive or new technologies, semi-direct drive technology may face marginalization

4. Cash Flow Risk
   : Sustained negative free cash flow may affect subsequent R&D and market expansion capabilities

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Mingyang Smart Energy’s two consecutive net profit declines are mainly due to

, not the technology route itself. The semi-direct drive technology route and still has differentiated competitive advantages in the field of large offshore wind turbines. However, the company needs to solve core issues: .

From a value investment perspective, the current PB of 1.18 times is close to historical lows, but considering the extremely low ROE level and sustained cash flow pressure,

[0].

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[0] Jinling AI Financial Database - Mingyang Smart Energy (601615.SS) Company Profile and Financial Analysis