Summary of Conference Call Records Industry Overview - The conference call primarily discusses the wind power industry, focusing on both onshore and offshore wind turbine markets, as well as specific companies involved in these sectors [1][4][5]. Key Points and Arguments Onshore Wind Turbine Market - Onshore wind turbine delivery gross margins are expected to recover by 2026, with overseas exports contributing to higher gross margins and lower expense ratios, potentially leading to net profits exceeding expectations [1][2]. - The average price of wind turbines is projected to increase by 3-5% in 2025, with some private manufacturers reporting increases over 5% compared to 2024 [8][9]. - The recovery of gross margins is anticipated to be gradual, with an annual increase of 2-3% deemed reasonable and healthy [9]. Offshore Wind Power Development - The offshore wind power sector is expected to grow significantly, driven by the "14th Five-Year Plan," with an anticipated addition of approximately 20 GW annually, totaling 100 GW by the end of the plan [1][4]. - By the end of 2025, cumulative bidding for offshore wind power is expected to reach about 5.53 GW, despite a year-on-year decline [4][6]. - The UK, Denmark, and the Netherlands are leading the European offshore wind market, with increased policy support expected to sustain a compound annual growth rate of 28-29% in the coming years [5]. Market Dynamics and Trends - The cumulative bidding volume for the wind power industry as of September 2025 is 78.36 GW, reflecting a 23% year-on-year decline, with onshore wind down 22% and offshore wind down 34% [6]. - The impact of the 136 document on the wind power industry has led to market fluctuations, with a notable decrease in bidding volumes in June and July, followed by a recovery in August [7]. Company Performance Predictions - Major companies in the wind power sector are expected to report strong performance in Q3 2025, with core companies anticipating a year-on-year growth rate of around 100%, while others expect over 50% growth [11][12]. - Specific company forecasts include: - Goldwind (金风科技) is projected to achieve a profit of approximately 4.5 billion yuan in 2026, with a target market capitalization of around 67.5 billion yuan [14]. - Oriental Cable (东方电缆) is expected to report profits of 2.1-2.2 billion yuan in 2026, with a target market capitalization of over 50 billion yuan [15]. - Zhongtian Technology (中天科技) is forecasted to achieve profits of about 4.2 billion yuan in 2026, with a target market capitalization exceeding 70 billion yuan [16]. Future Outlook - The wind power industry has potential for further valuation increases, contingent on exceeding offshore wind planning volumes and breakthroughs in export orders, particularly high-value contracts [18]. - The overall sentiment is optimistic regarding the recovery and growth of the wind power sector, with expectations of improved profitability and market conditions in the coming years [1][12]. Additional Important Insights - The stability of pricing in the offshore wind market is noted, with prices for turbines ranging from 2,500 to 3,500 yuan depending on specifications [10]. - The focus on lifecycle return stability among owners is reducing the prevalence of lowest-bidder scenarios, indicating a shift in market dynamics [9].

Summary of Wind Power Industry Conference Call Industry Overview - The wind power industry is projected to see new installed capacity of 120 to 130 GW in 2026, slightly lower than the 125 to 135 GW forecast for 2025, primarily due to a slight decline in onshore wind power, while offshore wind power is expected to grow significantly from 7-8 GW in 2025 to 13-17 GW in 2026 [1][2][3] Key Insights and Arguments - The increase in wind turbine prices has significantly impacted the industry, with an estimated 19,000 new installations in 2025, leading to a total output value close to 200 billion yuan, representing a year-on-year growth of 30%-40% [1][4] - The offshore wind power sector is anticipated to have substantial growth potential in the coming years, with expectations of reaching 15 to 18 GW by 2030, contingent on the number of projects under construction increasing to over 15 [1][7] - The industry has largely resolved past issues, with current focus on the rise in wind turbine prices, which have increased by approximately 5%, positively affecting industry profits [1][8] Financial Performance - The mid-year report for 2025 indicates a comprehensive recovery in profitability, with industry revenue growing by 40% and profits increasing by 26%. The second quarter alone saw a year-on-year profit growth of 33% and a quarter-on-quarter growth of 73% [2][10] - The wind turbine component sector has shown significant performance, with a notable decrease in expense ratios expected to continue into the second half of the year [2][10] Market Dynamics - Offshore wind power and exports are identified as the main growth drivers, with competition intensity lower than that of domestic onshore wind power. Chinese companies are expected to enhance their market share through globalization [2][12] - The cable industry is projected to see a significant performance increase starting from the third quarter of 2025, surpassing historical levels [2][14] Future Outlook - The wind turbine and related components industry is expected to have a very optimistic development outlook, with potential for record-high profitability in 2025-2026, driven by price increases and improved profit expectations [2][16] - The domestic offshore wind market is anticipated to have significant elasticity, with revenue expectations around 10 to 15 GW, and potential for higher actual installation if performance is strong [2][17] Additional Considerations - The stability of component and raw material prices is noted, with little likelihood of significant rebounds, which is crucial for maintaining industry profitability [1][9] - The overall market sentiment remains positive, with expectations of a full recovery beginning in the third quarter of 2025, driven by domestic offshore projects and export opportunities [2][13]

Investment Rating - The investment rating for the electric equipment and new energy industry is "Outperform the Market" (maintained) [1] Core Insights - Goldwind Technology is rapidly expanding its overseas business, achieving a revenue of 7.19 billion yuan from January to May, representing a 96% year-on-year increase, and a net profit of 933 million yuan, up 182% year-on-year [1][6] - A joint venture has been established by Dayun Co., Dongfang Cable, and Zhejiang Energy Group to create the Zhejiang Offshore Wind Equipment Base [1] - The construction of the Yangjiang Sanshan Island offshore wind flexible DC transmission project has commenced, marking steady progress in the offshore wind cluster in Guangdong [1] Summary by Sections Wind Turbine Exports - Emerging markets in Asia, Africa, and Latin America are experiencing rapid growth in wind power demand, with seven domestic wind turbine companies securing international orders in 2024, including Goldwind with over 7.7 GW of orders [3][5] Offshore Wind Power - The Zhejiang deep-sea equipment industry chain is gradually taking shape, with Dayun Co. planning to invest 60 million yuan in a joint venture to establish the Zhejiang Ningbo Offshore Wind Mother Port Equipment Development Co., responsible for the construction of the offshore wind mother port project [7][8] - The Yangjiang Sanshan Island project includes a ±500 kV offshore converter station and aims to deliver 2 GW of green electricity to the Guangdong-Hong Kong-Macao Greater Bay Area [9][10]

Investment Rating - The report assigns a "Buy" rating for the company with a target price of 78.74 CNY based on a 20x PE for 2025 [5][3]. Core Views - The company is positioned to benefit from a new cycle of demand in offshore wind energy, particularly in China and Europe, with significant growth expected in domestic offshore wind installations starting in 2025 [3][9]. - The company has a robust production capacity expansion plan, aiming to increase its annual production capacity from 1 million tons to 1.5 million tons by 2025, supported by strategic investments in various port facilities [2][3]. - The company is diversifying its product offerings to include a broader range of offshore engineering equipment, enhancing its competitive edge in the deep-sea market [2][3]. Summary by Sections Company Overview - The company has over 15 years of experience in the offshore wind component manufacturing sector and is a leading supplier in China [1][13]. - It operates under a dual strategy of "offshore + overseas," focusing on equipment manufacturing, renewable energy development, and operation and maintenance [1][13]. Market Demand - The report highlights a significant increase in offshore wind installation demand in both China and Europe, with projections indicating a 200% year-on-year increase in new installations in China by 2025 [9][35]. - In Europe, the offshore wind market is expected to see a 73% year-on-year increase in new installations in 2025, with a total of 48 GW expected from 2025 to 2030 [9][46]. Production Capacity and Expansion - The company has established multiple production bases across various provinces, with a current production capacity of 1 million tons, set to increase to 1.5 million tons by 2025 [2][3]. - The company is strategically investing in port facilities to support its export capabilities, particularly targeting the European market where there is a significant supply gap [2][3]. Financial Projections - The company is expected to see a substantial recovery in profitability, with projected net profits of 855.87 million CNY, 1.1 billion CNY, and 1.31 billion CNY for 2025, 2026, and 2027 respectively [3][4]. - The report anticipates a significant increase in revenue, with estimates of 6.58 billion CNY in 2025, reflecting a growth rate of 385.78% compared to 2024 [4][3]. Product Development - The company is expanding its product line to include a diversified range of offshore engineering equipment, moving beyond traditional wind turbine components [2][3]. - The focus on deep-sea markets is expected to drive innovation and product development, with increased R&D investment planned for 2024 [2][3].