SINOLINK SECURITIES·2025-09-02 05:41Investment 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].