Core Viewpoint - The wind power sector has shown significant growth in revenue and profit in the first half of 2025, indicating a positive industry trend and potential for continued upward momentum in the coming periods [1][2]. Group 1: Financial Performance - In the first half of 2025, the wind power sector achieved revenue of 104.7 billion yuan, a year-on-year increase of 45.6%, and a net profit attributable to shareholders of 4.23 billion yuan, up 15.5% year-on-year [1][2]. - In the second quarter of 2025, the sector's revenue reached 66.4 billion yuan, reflecting a year-on-year growth of 52.4%, with net profit of 2.9 billion yuan, a 19% increase, marking the highest quarterly performance in nearly 23 years [1][2]. - Despite high revenue growth, the overall gross and net profit margins have slightly declined due to an increase in manufacturing revenue share, impacting the gross margin of the complete machine segment [2]. Group 2: Demand and Orders - The demand for wind power installations is expected to remain high in the second half of 2025 and into 2026, supported by elevated inventory and contract liabilities across most segments [3]. - Leading manufacturers have reported an upward trend in their order backlogs, with the industry currently holding approximately 300 GW of orders, indicating continued growth in domestic installations [3]. Group 3: Segment Performance - Major turbine manufacturers have improved their manufacturing margins, with companies like Goldwind and Envision experiencing a 2-4 percentage point increase in gross margins, primarily due to a higher proportion of high-priced orders [4]. - The offshore wind segment is accelerating, with significant growth in overseas revenues for companies like Goldwind and Mingyang, which saw over 50% growth in international wind turbine sales [4]. - The cable and component segments are also showing strong performance, with historical highs in inventory and contract liabilities, particularly benefiting from the rising demand in offshore wind projects [5]. Group 4: Investment Recommendations - The report suggests focusing on three main investment themes: 1. The complete machine segment, benefiting from domestic wind turbine demand and price improvements, with recommended stocks including Goldwind Technology, Envision, and Mingyang [6]. 2. The cable and foundation segments, which are expected to see profit growth due to high demand and overseas orders, with recommended stocks including Daikin Heavy Industries and Oriental Cable [6]. 3. The casting and blade segments, which are anticipated to have significant earnings elasticity due to supply-demand tightness and price increases, with recommended stocks including Jinlei and Riyue [6].

Investment Rating - The report establishes a positive investment outlook for the wind power sector, indicating a confirmed industry turning point in H1 2025, with expectations for continued revenue and profit growth [3]. Core Insights - The wind power sector achieved revenue of CNY 1,047 billion in H1 2025, representing a year-on-year increase of 45.6%, and a net profit of CNY 42.3 billion, up 15.5% year-on-year [2][21]. - The report highlights a significant increase in demand driven by the "531 rush installation," with new wind power installations reaching 51.4 GW in H1 2025, a 99% increase year-on-year [7]. - The report anticipates sustained high demand in H2 2025 and FY 2026, supported by a robust order backlog of approximately 300 GW across leading manufacturers [2][12]. Summary by Sections Revenue and Profit Growth - The wind power sector's revenue and profit growth in H1 2025 was driven by strong demand, with Q2 2025 revenue reaching CNY 664 billion, a 52.4% increase year-on-year, marking the highest quarterly revenue in nearly 23 years [2][24]. - The overall gross margin and net margin for the industry showed a decline due to the increased proportion of lower-margin manufacturing revenue [2][21]. Order Backlog and Future Demand - As of the end of H1 2025, leading manufacturers maintained a growing order backlog, sufficient to cover the next two years of installation demand, indicating a positive outlook for 2026 [12][21]. - The report notes that the average bidding price for wind turbines has been increasing, with a notable rise in the average price for various power segments [14][16]. Segment Performance - The report identifies three key investment themes: 1. The turbine manufacturing segment benefiting from domestic demand and price increases, with recommended stocks including Goldwind Technology, Yunda Co., and Mingyang Smart Energy [3]. 2. The submarine cable and foundation segments benefiting from high demand and overseas orders, with recommendations for companies like Daikin Heavy Industries and Oriental Cable [3]. 3. The forging and casting segments showing significant profit elasticity due to supply-demand tightness, with recommended stocks including Jinlei Co. and Riyue Co. [3]. Cost and Margin Analysis - The report indicates that the cost structure across various segments has improved, with a decrease in expense ratios due to higher revenue growth, particularly in the casting and forging segments [41][42]. - The gross margins for the turbine manufacturing segment have been under pressure, but segments like casting and blades have shown recovery in profitability [38][39].

Core Viewpoint - The stock of Yunda Co., Ltd. has shown significant price movements and financial performance, indicating potential investment opportunities in the wind energy sector [1][2]. Financial Performance - As of June 30, 2025, Yunda Co., Ltd. achieved a revenue of 10.894 billion yuan, representing a year-on-year growth of 26.27% [2]. - The net profit attributable to shareholders was 144 million yuan, reflecting a decrease of 2.62% compared to the previous period [2]. - The company has distributed a total of 281 million yuan in dividends since its A-share listing, with 153 million yuan distributed over the last three years [3]. Stock Performance - On August 29, 2023, Yunda's stock price decreased by 2.10%, trading at 15.84 yuan per share, with a total market capitalization of 12.464 billion yuan [1]. - Year-to-date, the stock price has increased by 20.18%, with a 5.95% rise over the last five trading days, 24.04% over the last 20 days, and 49.58% over the last 60 days [1]. Shareholder Information - As of June 30, 2025, the number of shareholders increased by 12.53% to 38,400, while the average number of circulating shares per person decreased by 10.80% to 18,153 shares [2]. - The second-largest shareholder, Hong Kong Central Clearing Limited, reduced its holdings by 5.5642 million shares, while Southern CSI 1000 ETF increased its holdings by 833,800 shares [3]. Business Overview - Yunda Co., Ltd. specializes in the research, production, and sales of large wind turbine generators, with 81.33% of its revenue coming from wind turbine sales [1]. - The company is categorized under the power equipment industry, specifically in wind power equipment and wind turbine manufacturing [1].

Core Viewpoint - The offshore wind operation and maintenance vessels are becoming increasingly vital in the offshore wind power industry, ensuring stable operations and playing an indispensable role in future energy layouts. The global demand for these specialized vessels is surging due to the rapid growth of offshore wind power installation capacity [1][6]. Group 1: Industry Overview - Offshore wind operation and maintenance vessels are specialized ships used for the operation and maintenance of offshore wind turbines, characterized by good motion performance in waves and the ability to safely transport personnel and equipment [2]. - The vessels are mainly categorized into two types: Service Operation Vessels (SOV) and Commissioning Service Operation Vessels (CSOV). SOVs are designed for storing, lifting, and replacing large components of offshore wind turbines, while CSOVs are more flexible and used during the construction and commissioning phases [2][3]. Group 2: Industry Development History - The development of China's offshore wind operation and maintenance vessels can be divided into three stages: early exploration, professional upgrade, and rapid development. The first offshore wind project in China was completed in 2007, marking the beginning of offshore wind maintenance [4]. - By 2021, the industry entered a rapid development phase, with the first batch of SOVs delivered in 2023, significantly enhancing operational efficiency and safety for offshore projects [5]. Group 3: Industry Chain - The industry chain consists of upstream raw materials and equipment supply, midstream production and manufacturing of the vessels, and downstream application in the offshore wind sector. The demand for operation and maintenance vessels is increasing as offshore wind farms enter the maintenance phase [5]. Group 4: Current Market Situation - The global delivery of wind operation and maintenance vessels is projected to reach 58 units in 2024, an increase of 18 units from 2023. China's share of this market has surged from 10% in 2019 to 50% in 2024, indicating rapid growth in this sector [1][6]. Group 5: Competitive Landscape - European companies like Royal IHC and Cadeler dominate the high-end market due to their technological expertise, while Chinese shipbuilders like China Merchants Heavy Industry and Zhenhua Heavy Industries lead the mid-tier market with significant orders for offshore wind operation vessels [8]. - Companies such as Jianglong Shipbuilding and Yinghui Southern Shipbuilding are notable for their advanced designs and construction capabilities in the field of offshore wind operation vessels [9][11]. Group 6: Future Trends - The demand for wind operation and maintenance vessels is expected to continue growing, driven by the push for carbon neutrality and the expansion of offshore wind projects [13]. - The vessels are evolving towards greater specialization and larger sizes to meet the operational demands of deep-sea wind projects, with a focus on safety, adaptability, and economic efficiency [14]. - Future vessels will incorporate smart technologies and automation, enhancing operational efficiency and safety while reducing labor costs and operational risks [15].

Core Insights - The company reported a total revenue of 10.894 billion yuan for the first half of 2025, representing a year-on-year increase of 26.27%, while the net profit attributable to shareholders was 144 million yuan, a decrease of 2.62% compared to the previous year [1] - The second quarter of 2025 saw a total revenue of 6.884 billion yuan, up 41.19% year-on-year, with a net profit of 84.82 million yuan, an increase of 10.41% [1] - The company's accounts receivable increased significantly, with a year-on-year growth of 46.3%, reaching 10.288 billion yuan [1] Financial Performance - Gross margin decreased to 8.96%, down 3.92% year-on-year, while net margin fell to 1.34%, a decline of 22.14% [1] - Total expenses (selling, administrative, and financial) amounted to 540 million yuan, accounting for 4.96% of revenue, a decrease of 1.68% year-on-year [1] - Earnings per share (EPS) dropped to 0.18 yuan, down 13.3% year-on-year, while the net asset value per share increased to 8.26 yuan, up 8.22% [1] Business Evaluation - The company's return on invested capital (ROIC) was 5.27%, indicating average capital returns, with a historical median ROIC of 5.46% since its listing [3] - The company relies heavily on research and development, marketing, and capital expenditures, necessitating careful evaluation of capital spending projects [3] - Cash flow analysis shows that cash and cash equivalents to current liabilities ratio is only 27.54%, and the average operating cash flow to current liabilities ratio over the past three years is 6.46% [3] Market Position and Future Outlook - The company is expected to maintain growth in wind power installations in 2025, driven by national carbon neutrality goals and the "14th Five-Year Plan" [4] - The company is actively expanding its overseas business, securing project orders in various regions including Asia, Europe, South America, and Africa [4] - Analysts project the company's earnings for 2025 to be around 688 million yuan, with an average EPS forecast of 0.87 yuan [3]

Market Performance - On August 28, the wind power equipment sector rose by 1.58%, with Electric Wind Power leading the gains [1] - The Shanghai Composite Index closed at 3843.6, up 1.14%, while the Shenzhen Component Index closed at 12571.37, up 2.25% [1] Stock Performance - Electric Wind Power (688660) closed at 25.56, up 14.46%, with a trading volume of 943,800 shares and a transaction value of 2.304 billion [1] - Other notable performers included Zhonghuan Hailu (301040) at 39.60, up 12.66%, and He Wang Electric (603063) at 37.78, up 6.51% [1] - Conversely, Mingyang Smart Energy (601615) fell by 4.17% to 12.18, with a trading volume of 944,800 shares and a transaction value of 1.148 billion [2] Capital Flow - The wind power equipment sector experienced a net outflow of 429 million from institutional investors, while retail investors saw a net inflow of 400 million [2] - The table of capital flow indicates that He Wang Electric had a net inflow of 1.956 million from institutional investors, while Electric Wind Power had a net outflow of 2.302 million [3] Individual Stock Analysis - He Wang Electric (603063) had a net outflow of 1.956 million from institutional investors, with a retail net inflow of 1.255 million [3] - Electric Wind Power (688660) saw a net outflow of 2.302 million from institutional investors, with a retail net inflow of 203.85 million [3] - Overall, the capital flow data suggests varying levels of investor interest across different stocks within the wind power equipment sector [3]

Performance Summary - In the first half of 2025, the company reported revenue of 10.89 billion, a year-on-year increase of 26.3%, and a net profit attributable to shareholders of 144 million, a year-on-year decrease of 2.6% [1] - In Q2, the company achieved revenue of 6.88 billion, a year-on-year increase of 41.2% and a quarter-on-quarter increase of 71.7%, with a net profit of 85 million, a year-on-year increase of 10.4% and a quarter-on-quarter increase of 44.2% [1] Operational Analysis - The wind turbine gross margin has significantly improved, with the company benefiting from the non-seasonal rush in wind power installations due to the implementation of the "Document 136". In the first half of the year, the company sold 6.3 GW of wind turbines, a year-on-year increase of 55.6%, generating revenue of 9.54 billion, a year-on-year increase of 47.1%. The gross margin for wind turbines was 7.27%, an increase of 2.15 percentage points year-on-year and 0.66 percentage points quarter-on-quarter [1] - The company has a cumulative grid-connected capacity of approximately 1.2 GW, with an increase of about 182 MW compared to the beginning of the period. The power generation revenue for the first half of the year was approximately 220 million, a year-on-year increase of 31.1%. Due to policy uncertainties from the "Document 136", there were no new power station transfer revenues in the first half [2] - The company is actively developing its "two seas" business, with significant progress in overseas projects. In the first half of the year, two 6 MW overseas turbine models were developed, and a 9 MW prototype has been operational for six months. The company successfully connected the world's largest 16 MW floating offshore wind turbine prototype to the grid, which has been operating without faults for over 100 days [2] Profit Forecast, Valuation, and Rating - The company is a leading player in the domestic turbine manufacturing industry, with a high proportion of revenue from turbine manufacturing compared to similar companies. It is expected to benefit from rising turbine prices, leading to significant earnings elasticity. The forecast for net profit attributable to shareholders for 2025-2027 is 620 million, 1.28 billion, and 1.76 billion, corresponding to PE ratios of 21, 10, and 7 times, respectively. The rating is maintained as "Buy" [3]

Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected price increase of over 15% in the next 6-12 months [4][11]. Core Insights - The company reported a revenue of 10.89 billion RMB for the first half of 2025, a year-on-year increase of 26.3%, while the net profit attributable to shareholders was 144 million RMB, a decrease of 2.6% [2]. - In Q2 2025, the company achieved a revenue of 6.88 billion RMB, reflecting a year-on-year growth of 41.2% and a quarter-on-quarter increase of 71.7%, with a net profit of 85 million RMB, up 10.4% year-on-year and 44.2% quarter-on-quarter [2]. - The wind turbine gross margin has significantly improved, with a gross margin of 7.27% in the first half of 2025, an increase of 2.15 percentage points year-on-year [2]. - The company sold 6.3 GW of wind power units in the first half of 2025, a 55.6% increase year-on-year, generating revenue of 9.54 billion RMB, up 47.1% year-on-year [2]. - The company has a cumulative grid-connected capacity of approximately 1.2 GW, with a power generation revenue of about 220 million RMB in the first half of 2025, a 31.1% increase year-on-year [3]. - The company is optimistic about the steady progress of new power station projects and expects the transfer rhythm of power stations to gradually return to normal as local policies are implemented [3]. - The company has made significant advancements in its offshore wind business, including the successful grid connection of the world's largest 16 MW floating offshore wind turbine prototype [3]. Financial Forecasts and Valuation - The company is projected to achieve net profits of 620 million RMB, 1.28 billion RMB, and 1.76 billion RMB for the years 2025, 2026, and 2027, respectively, with corresponding P/E ratios of 21, 10, and 7 [4][8].

Core Insights - The company reported a total revenue of 10.894 billion, ranking third among disclosed peers, with a year-on-year increase of 2.266 billion, representing a 26.27% growth compared to the same period last year [1] - The net profit attributable to shareholders was 144 million, ranking sixth among peers, showing a decrease of 3.8694 million, which is a 2.62% decline year-on-year [1] - The net cash flow from operating activities was -922 million, ranking fourteenth among peers, but increased by 872 million compared to the same period last year [1] Financial Ratios - The latest debt-to-asset ratio is 84.77%, ranking sixteenth among peers, with an increase of 0.77 percentage points from the previous quarter and 1.83 percentage points from the same period last year [3] - The latest gross profit margin is 8.96%, ranking fourteenth among peers, with a decrease of 1.51 percentage points from the previous quarter and a 4.29 percentage points decline year-on-year [3] - The latest return on equity (ROE) is 2.21%, ranking tenth among peers, down 0.54 percentage points from the same period last year [3] Earnings Per Share and Turnover Ratios - The diluted earnings per share (EPS) is 0.18, ranking ninth among peers, showing a decrease of 0.03, which is a 13.30% decline year-on-year [3] - The latest total asset turnover ratio is 0.26 times, ranking fifth among peers, with an increase of 0.01 times, marking a 2.00% year-on-year growth [3] - The latest inventory turnover ratio is 1.43 times, ranking seventh among peers, with an increase of 0.38 times, representing a 35.82% year-on-year increase [3] Shareholder Structure - The number of shareholders is 38,400, with the top ten shareholders holding 417 million shares, accounting for 52.93% of the total share capital [3] - The largest shareholder is Zhejiang Electromechanical Group Co., Ltd., holding 46.50% of the shares [3]

Group 1 - Company announced the convening of the 33rd meeting of the 5th Board of Directors and the 28th meeting of the 5th Supervisory Board on August 26, 2025, to review the proposal for providing guarantee limits for subsidiaries [1] - The full subsidiary Zhejiang Yunda Energy Construction Co., Ltd. plans to apply for bank guarantees with a daily balance not exceeding 500 million yuan, while Yunda Intelligent Service New Energy Technology (Zhejiang) Co., Ltd. plans for a daily balance of up to 15 million yuan [1] - The total approved guarantee limit for the company and its subsidiaries is approximately 1.252 billion yuan, with an actual guarantee balance of about 705 million yuan, accounting for 12.41% of the company's latest audited net assets [1]