Market Overview - The wind power equipment sector increased by 2.39% on October 29, with Jixin Technology leading the gains [1] - The Shanghai Composite Index closed at 4016.33, up 0.7%, while the Shenzhen Component Index closed at 13691.38, up 1.95% [1] Stock Performance - Jixin Technology (601218) closed at 5.83, up 6.00% with a trading volume of 1.86 million shares and a turnover of 1.08 billion [1] - New Qianglian (300850) closed at 52.55, up 5.59% with a trading volume of 360,600 shares and a turnover of 1.86 billion [1] - Goldwind Technology (002202) closed at 15.67, up 4.68% with a trading volume of 1.57 million shares and a turnover of 2.42 billion [1] - Other notable performers include Hengrun Co. (603985) up 4.15%, Mingyang Smart Energy (601615) up 3.60%, and Riyue Co. (603218) up 3.35% [1] Capital Flow - The wind power equipment sector saw a net inflow of 209 million in main funds, while retail investors experienced a net outflow of 346 million [2][3] - New Qianglian had a main fund net inflow of 187 million, but retail investors had a net outflow of 187 million [3] - Jixin Technology experienced a main fund net inflow of 93.15 million and a retail net outflow of 137 million [3]

Investment Rating - The report maintains an "Overweight" rating for the industry [4] Core Insights - The domestic offshore wind sector is expected to reach a delivery peak, with significant progress in the construction of a new energy system during the 14th Five-Year Plan [10][35] - The report highlights the importance of accelerating the green and low-carbon transition in energy, emphasizing the need for a new energy system that relies heavily on clean energy sources [35][37] Summary by Sections Lithium Battery Sector - CATL's Q3 2025 revenue reached 104.19 billion yuan, a year-on-year increase of 12.9%, with a net profit of 16.42 billion yuan, up 35.47% [14] - EVE Energy's Q3 2025 revenue was 16.832 billion yuan, a 35.85% increase year-on-year, with a net profit of 1.211 billion yuan, up 15.13% [15] - Tesla deployed 12.5GWh of energy storage in Q3 2025, achieving a gross margin of 32.21% [16] Energy Storage Sector - The report notes the signing of a large-scale energy storage project in the Philippines, indicating a push into the Southeast Asian market [22] - Various pricing policies for energy storage in different regions, such as Tianjin and Hunan, are highlighted, with storage prices ranging from 0.26 to 0.45 yuan/kWh [27][32] Power Equipment Sector - The report emphasizes the need for a green low-carbon transition in energy, with a focus on developing non-fossil energy sources and enhancing the efficiency of fossil fuel usage [35][36] - Recommendations include focusing on ultra-high voltage projects and potential opportunities in power equipment exports [8] Photovoltaic Sector - The report tracks fluctuations in silicon material prices and the overall stability in the silicon wafer market, with expectations of continued price stability in the short term [41] - The demand for different types of solar panels is noted, with a preference for 210 specifications despite some inventory build-up [41] Wind Power Sector - The report outlines the progress of various offshore wind projects in China, indicating a well-organized construction pace and the anticipation of a delivery peak [10][10] - Key companies benefiting from domestic and international offshore wind demand are identified, including cable manufacturers and turbine producers [10]

Investment Rating - The report maintains an "Outperform" rating for the industry [1] Core Insights - The pace of wind turbine large-scale development is clearly slowing down, with a focus on hydrogen energy as a "future industry" in the 14th Five-Year Plan [1][7] - The wind power index increased by 5.91%, outperforming the CSI 300 index by 2.66 percentage points [4][12] - The overall PE ratio for the wind power index is 25.72 times [12] Summary by Sections Wind Power - The recent Beijing International Wind Energy Conference showcased few new products, with a trend towards standardizing rotor diameters rather than further increasing size [6][11] - The domestic wind turbine market is expected to stabilize, with a focus on international expansion, leading to a gradual recovery in profitability for wind turbine manufacturers by 2026 [6][11] - The wind power index's performance indicates a strong market sentiment, with a year-to-date increase of 40.03% [12][13] Photovoltaics - Tongwei's Q3 earnings showed significant improvement, with a revenue of 24.09 billion yuan, a year-on-year decrease of 1.57%, and a net loss reduction of 5.29 billion yuan [6][4] - The overall PE ratio for the photovoltaic sector is approximately 44.31 times, indicating a high valuation despite short-term supply-demand challenges [4][12] Energy Storage & Hydrogen Energy - The 14th Five-Year Plan emphasizes hydrogen energy as a key future industry, highlighting its potential for significant market growth [7] - The report suggests that the hydrogen energy sector is gaining policy support, with expectations for orderly project implementation across the entire industry chain [7] - Investment opportunities are identified in companies focusing on green hydrogen project investment and operation [7] Investment Recommendations - For wind power, the report recommends focusing on domestic offshore demand, profitability recovery, and international expansion opportunities, highlighting companies like Mingyang Smart Energy and Goldwind [7] - In photovoltaics, attention is drawn to structural opportunities within the industry, with recommended stocks including Dier Laser and Longi Green Energy [7] - In energy storage, the report suggests looking at companies with strong global competitiveness and low valuations, such as Sungrow Power Supply [7]

Core Viewpoint - Mingyang Smart Energy has experienced fluctuations in stock price and trading volume, with a notable increase in revenue but a decrease in net profit year-on-year [1][2]. Group 1: Stock Performance - On October 28, Mingyang Smart Energy's stock fell by 2.02%, trading at 15.03 CNY per share, with a total market capitalization of 34.141 billion CNY [1]. - The stock has increased by 21.98% year-to-date, with a 1.31% decline over the last five trading days, an 11.09% increase over the last 20 days, and a 28.90% increase over the last 60 days [1]. Group 2: Financial Performance - For the first half of 2025, Mingyang Smart Energy reported a revenue of 17.143 billion CNY, representing a year-on-year growth of 45.33%, while the net profit attributable to shareholders decreased by 7.68% to 610 million CNY [2]. Group 3: Shareholder Information - As of June 30, 2025, the number of shareholders for Mingyang Smart Energy was 118,800, a decrease of 10.40% from the previous period, with an average of 19,117 circulating shares per shareholder, an increase of 11.60% [2]. - The company has distributed a total of 2.858 billion CNY in dividends since its A-share listing, with 1.999 billion CNY distributed over the last three years [3]. - Among the top ten circulating shareholders, Hong Kong Central Clearing Limited holds 68.3953 million shares, an increase of 3.551 million shares from the previous period, while HSBC Jintrust Low Carbon Pioneer Stock A has reduced its holdings by 630,190 shares to 29.0217 million shares [3].

Investment Rating - The report recommends investment in the electric power equipment industry, highlighting specific companies for potential investment opportunities [1][3]. Core Insights - Lithium battery material prices continue to rise, with domestic lithium hexafluorophosphate averaging 95,000 yuan/ton, up 20.25% month-on-month, and export prices at 104,000 yuan/ton, up 20.93% [1]. - The average winning bid price for lithium battery energy storage systems increased to 0.4771 yuan/Wh in September 2025, reflecting a 4.33% month-on-month rise [1]. - The report emphasizes the ongoing high demand in the wind power sector, with a target of adding no less than 120GW of new installed capacity annually during the 14th Five-Year Plan period [3]. - The Indian market shows strong demand for photovoltaic installations, with 29.5GW added in the first three quarters of 2025, a 70% year-on-year increase [3]. Summary by Sections Lithium Battery Materials - Domestic lithium hexafluorophosphate prices are at 95,000 yuan/ton, a 20.25% increase month-on-month, while export prices are at 104,000 yuan/ton, up 20.93% [1]. - Recommended companies in the lithium battery sector include Zhuhai Guanyu, Shangtai Technology, and XWANDA [1]. Energy Storage Systems - The average winning bid price for lithium battery energy storage systems reached 0.4771 yuan/Wh in September 2025, marking a 4.33% increase month-on-month [1]. - Recommended companies in the energy storage sector include Yiwei Lithium Energy, Sungrow Power, and CATL [1]. Wind Power - The "Wind Energy Beijing Declaration 2.0" sets a target of at least 120GW of new installed capacity annually during the 14th Five-Year Plan, with a cumulative target of 1,300GW by 2030 [3]. - Recommended companies in the wind power sector include Goldwind Technology and Daikin Heavy Industries [3]. Photovoltaic Market - India added 29.5GW of new photovoltaic capacity in the first three quarters of 2025, a 70% year-on-year increase [3]. - Recommended companies in the photovoltaic sector include Aiko Solar, LONGi Green Energy, and Mibet [3].

Core Viewpoint - The outlook for offshore wind power in China is optimistic, with deep offshore areas expected to become the main development region in the next five years, surpassing onshore wind power [1][6]. Company Developments - Mingyang Smart Energy has introduced a 50 MW floating offshore wind turbine, the largest of its kind globally, which is designed to operate in water depths greater than 40 meters [3][9]. - The company has invested 2.3 billion yuan over five years to develop sustainable offshore wind technology, focusing on floating wind turbines that can harness stronger wind resources in deep sea areas [9][14]. - Mingyang's new "New Leadership Plan" aims to accelerate the commercialization of floating offshore wind power by five years [5]. Market Position - Mingyang Smart Energy is a leading player in the global offshore wind market, accounting for approximately 15% of the new offshore wind installations globally in the previous year, with 1.8 GW added [3][10]. - The company has completed a product lineup for onshore wind turbines ranging from 2.5 MW to 15 MW and offshore turbines from 10 MW to 25 MW [4]. Industry Trends - The Chinese offshore wind market is experiencing a slowdown after a previous surge, with new installations expected to be only 404 MW in 2024, a decline of over 40% year-on-year [10][11]. - The development of deep offshore wind power in China is still in its early stages, facing challenges related to technology, costs, and ecological impacts [11][12]. Future Projections - It is anticipated that offshore wind installations in China will see significant growth, with projections of 10 GW and 15 GW of new installations in 2025 and 2026, respectively [12]. - By 2030, the expected new installations for offshore wind power in China are projected to reach 25 GW [12]. Cost and Pricing Strategy - Mingyang aims to reduce the cost of floating wind power to below 10,000 yuan per MW, with target electricity costs of 0.25 yuan per kWh in Guangdong and 0.20 yuan per kWh in Fujian [15][16]. - The company plans to establish China's first floating wind power manufacturing base in Guangdong, emphasizing industrialized and standardized production methods [14][15]. International Expansion - Mingyang is also targeting international markets, with plans to invest 1.5 billion pounds (approximately 143 billion yuan) in building an integrated wind turbine manufacturing base in Scotland [17][18]. - The company views Europe as a core market and aims to align its technology and products with global standards [18].

Core Viewpoint - Mingyang Smart Energy has shown a significant increase in stock price and trading volume, indicating positive market sentiment and investor interest in the company's performance and growth potential [1][2]. Financial Performance - As of June 30, 2025, Mingyang Smart Energy reported a revenue of 17.143 billion yuan, representing a year-on-year growth of 45.33% [2]. - The company's net profit attributable to shareholders was 610 million yuan, which reflects a decrease of 7.68% compared to the previous period [2]. Stock Market Activity - On October 24, Mingyang Smart Energy's stock price rose by 2.14%, reaching 15.72 yuan per share, with a trading volume of 327 million yuan and a turnover rate of 0.93% [1]. - The stock has increased by 27.58% year-to-date, with a 2.75% rise over the last five trading days, 16.79% over the last 20 days, and 36.34% over the last 60 days [1]. Shareholder Information - As of June 30, 2025, the number of shareholders for Mingyang Smart Energy was 118,800, a decrease of 10.40% from the previous period [2]. - The average number of circulating shares per shareholder increased by 11.60% to 19,117 shares [2]. Dividend Distribution - Mingyang Smart Energy has distributed a total of 2.858 billion yuan in dividends since its A-share listing, with 1.999 billion yuan distributed over the past three years [3]. Institutional Holdings - As of June 30, 2025, Hong Kong Central Clearing Limited was the fourth largest circulating shareholder, holding 68.3953 million shares, an increase of 3.551 million shares from the previous period [3]. - HSBC Jintrust Low Carbon Pioneer Stock A was the tenth largest circulating shareholder, holding 29.0217 million shares, a decrease of 630,190 shares from the previous period [3].

Core Insights - The wind power industry is expected to maintain a rising trend in the fourth quarter, driven by the acceleration of large-scale projects like the "Shage Desert" base [1] - Key component manufacturers in the wind power sector have reported significant growth in their third-quarter earnings, while the midstream wind turbine manufacturing segment is still in a recovery phase [2][3] Company Performance - Xinqianglian, a leading bearing manufacturer, reported a revenue of 3.618 billion yuan for the first three quarters, a year-on-year increase of 84.10%, and a net profit of 664 million yuan, up 1939.50% [2] - Zhongcai Technology achieved a revenue of 8.369 billion yuan in the third quarter, reflecting a year-on-year growth of 33.47%, with a net profit increase of 234.84% [2] - Guangda Materials reported total revenue of 3.775 billion yuan for the first three quarters, a 27.56% increase, and a net profit of 249 million yuan, up 213.65% [3] Industry Trends - The demand for wind turbine blades is currently outstripping supply, with leading companies experiencing full order books, indicating a continuation of high demand into the fourth quarter [2] - The average gross margin for midstream turbine manufacturers was around 11% in the first half of the year, showing a decline of over 3 percentage points year-on-year [3] - The wind power industry is projected to see an annual average investment exceeding 250 billion yuan during the "14th Five-Year Plan" period, with core components expected to capture about 60% of the market share [6] Market Opportunities - China's new energy targets aim for wind and solar power generation capacity to reach six times that of 2020 by 2035, suggesting a doubling of annual new installations in the next five years [4] - Major projects like the 19 million kW capacity in Xinjiang, which includes 4 million kW of wind power, are set to drive demand [5] - The exploration of new business models such as wind power hydrogen production is expanding market boundaries, with significant investments in integrated projects [5]

Core Viewpoint - The wind power equipment industry is experiencing a turning point in profitability, driven by strong domestic and international demand, with significant growth expected in both onshore and offshore wind installations from 2025 to 2030 [2][4]. Group 1: Domestic Market Dynamics - Domestic wind power demand remains stable, supported by the "dual carbon" goals and the plan to reach 3.6 billion kilowatts of wind and solar installations by 2035 [2]. - The bidding volume for complete wind turbine units in the first three quarters of 2025 increased by 5% year-on-year, indicating a solid foundation for future installations [2]. - The average bidding price for onshore wind turbines, including towers, increased by 13% in the first eight months of 2025 compared to 2024, signaling a recovery in pricing and profitability for domestic manufacturers [2][3]. Group 2: International Market Opportunities - The Global Wind Energy Association forecasts that from 2025 to 2030, the total new installed capacity for onshore wind outside of China will reach 367 GW, with a compound annual growth rate (CAGR) of 12.4%, while offshore wind is expected to grow at a CAGR of 15.8% [4]. - Domestic wind turbine manufacturers are accelerating their international expansion, investing in factories in Brazil, Europe, and Central Asia, transitioning from mere product exports to localized operations [4]. - In the first three quarters of 2025, domestic manufacturers secured a record 19.28 GW in overseas orders, reflecting a year-on-year increase of 187.8%, with higher order prices and better profitability [4][6]. Group 3: Future Outlook - The wind power sector is expected to maintain high installation levels domestically, with a recovery in bidding prices leading to improved profitability for wind turbine manufacturers as orders from the price recovery phase are delivered starting in Q4 2025 [3][6]. - The combination of stable domestic demand and rising international orders is anticipated to drive significant growth in profitability for domestic wind turbine companies, with a focus on key players such as Goldwind Technology, Yunda Co., Mingyang Smart Energy, and SANY Heavy Energy [6].

Core Viewpoint - The Chinese government supports its enterprises in international cooperation based on mutual benefit and market principles, while emphasizing the importance of investment security [1]. Group 1: Investment Plans - Mingyang Smart Energy plans to invest £1.5 billion (approximately ¥142.10 billion) to establish the UK's first integrated wind turbine manufacturing base in Scotland, focusing on offshore and floating wind turbine production [4]. - The project will be executed in three phases: the first phase involves building advanced wind turbine nacelle and blade manufacturing facilities, with the first production expected by the end of 2028; the second phase will expand production lines for floating wind technology; the third phase will further extend to the production of control systems, electronic devices, and other key components [4]. Group 2: Political and Regulatory Environment - There are concerns in the UK regarding national security related to the investment, with the UK government having previously blocked or conditioned over ten investments from Chinese companies since the National Security and Investment Act was enacted in 2022 [1]. - The Chinese government opposes the politicization of economic issues and the broadening of national security concepts, warning that such trends could negatively impact Chinese companies' assessments of the UK investment environment [1]. Group 3: Risks and Challenges - Mingyang Smart Energy acknowledges uncertainties regarding the investment, including the possibility of not obtaining necessary approvals, and highlights potential challenges in overseas market competition, talent acquisition, and internal management [5].