Core Viewpoint - The report from CITIC Securities indicates that the domestic offshore wind sector is expected to see significant performance improvements in Q2 2025, driven by increased shipment volumes and enhanced capacity utilization, leading to higher net profit per ton [1][3][6] Group 1: Industry Performance - In 2024, wind power companies are projected to achieve total revenue of 334.5 billion yuan, representing an 8% year-on-year increase, but with a decline in net profit to 13.36 billion yuan, down 12% year-on-year [2] - The overall gross margin for wind power companies is expected to be 14%, with a net margin of 4%, both down by 3.0 percentage points and 0.9 percentage points respectively, primarily due to falling turbine delivery prices and significant price drops in components [2] - The offshore wind sector is anticipated to see a recovery in profitability in Q1 2025 due to strong industry demand [2] Group 2: Offshore Wind Project Developments - Significant increases in single pile shipments for offshore wind are expected in Q2, with major projects in Jiangsu and Guangdong now underway, contributing to improved performance for related companies [3][4] - By 2025, approximately 11 GW of new offshore wind capacity is expected to be connected to the grid in China, with projects in various provinces including Hebei, Shandong, Zhejiang, Shanghai, and Tianjin [4] - The capacity utilization rate for tower manufacturers is projected to rise from 5% to 50%, leading to a notable increase in net profit per ton, from a loss of 3,424 yuan per ton to a profit of 648 yuan per ton [5] Group 3: Market Sentiment and Recommendations - The current market sentiment towards domestic offshore wind is considered low, but improvements in actual shipments and performance are expected in Q2 [6] - The report emphasizes the importance of focusing on the offshore wind and turbine sectors, as positive changes in construction, orders, and performance are anticipated in the near term [1][3]