Industry Overview - As of now, the newly installed wind power capacity in China exceeds 57.84 million kilowatts, with a cumulative installed capacity of 580 million kilowatts, accounting for 15.7% of the national power generation capacity [1] - The wind power installed capacity in China has ranked first in the world for 15 consecutive years and is entering a new era of annual new installations exceeding 10 million kilowatts [1] - In the first eight months of 2025, the national wind power installed capacity reached 58 GW, a year-on-year increase of 72%, with Q3 showing continued growth in both onshore and offshore wind deliveries [1] - From January to September 2025, onshore wind turbine bidding reached 79 GW, a year-on-year increase of 7%, while offshore wind bidding reached 8.3 GW, a year-on-year increase of 9% [1] - The 2025 Beijing International Wind Energy Conference and Exhibition, known as a "barometer" for China's wind power industry, opened on October 20, where the "Beijing Wind Energy Declaration 2.0" was released, aiming for an annual new installed capacity of no less than 12 million kilowatts during the 14th Five-Year Plan period [1] Company Insights - Longyuan Power (001289) is a listed company under the State Energy Group, rapidly developing its offshore wind power business with multiple large offshore wind farms in Jiangsu and Fujian [2] - Longyuan Power is expected to benefit from VAT tax refund policies, enhancing cash flow and overall performance, having won a bid for a 1 million kilowatt offshore wind power project in Jiangsu, a key project for 2025 [2] - Goldwind Technology (002202) is a leading player in the domestic wind power industry, heavily investing in offshore wind power technology research and product manufacturing [2] - The new policies are anticipated to further promote the offshore wind power market, providing a favorable market environment for Goldwind's offshore wind equipment sales, with projected revenue from self-owned wind farms reaching 10.8 billion RMB in 2024 [2] - In the first half of 2025, Goldwind's new signed orders in the offshore wind market reached 6 GW, and the company secured over 43% of the bidding volume in the 675 MW wind power project by Huadian in October 2025, showcasing its strong competitive edge [2] - Goldwind plans to invest 6 billion RMB in building a zero-carbon wind power industrial base in the Beibu Gulf, further enhancing its competitiveness in the offshore wind market [2] - Goldwind's cumulative delivery of wind power mixed towers has surpassed 3,000 units, serving over 240 wind power projects across 21 provinces, with a cumulative delivery capacity exceeding 15 GW [2]

Core Viewpoint - The company's 1H25 performance met market expectations, with significant revenue growth but a decline in net profit [1] Financial Performance - In 1H25, the company reported revenue of 8.594 billion yuan, a year-on-year increase of 62.75%, while net profit attributable to shareholders was 210 million yuan, corresponding to earnings per share of 0.17 yuan, down 51.54% year-on-year [1] - For 2Q25, the company achieved revenue of 6.407 billion yuan, representing an 80.3% year-on-year growth and a 292.9% quarter-on-quarter increase; net profit was 401 million yuan, up 139.2% year-on-year, marking a turnaround from a loss [1] Business Segments - The company's wind turbine gross margin was under pressure, with a gross margin of 4.65%, the lowest in recent years, primarily due to the impact of low-priced orders from previous periods [1] - The company sold over 300,000 kW of power stations, generating 1.83 billion yuan in revenue from this segment, with a gross margin of 28.8%, indicating a smooth sales rhythm for power station products [1] Development Trends - As of the end of 1H25, the company had a backlog of 28 GW in orders, with over 2 GW of new overseas orders since the beginning of 2025, and overseas order value exceeding 10 billion yuan [2] - The company is expected to see significant growth in wind turbine shipments in 2025, with overall shipment levels projected to remain stable in 2026; wind turbine profitability is anticipated to improve as the impact of low-priced orders diminishes [2] - The power station business is experiencing rapid growth, with 0.46 GW of new connected power stations added in 1H25 and 2.9 GW under construction, alongside plans for greenfield projects overseas [2] Profit Forecast and Valuation - Due to lower-than-expected profit margins in the wind turbine manufacturing business, the company has revised its profit forecasts for 2025 and 2026 down by 35.1% and 12.4% to 1.51 billion yuan and 2.40 billion yuan, respectively [3] - The current stock price corresponds to a price-to-earnings ratio of 23.1 and 14.5 for 2025 and 2026, respectively; the company maintains a target price of 33.92 yuan, indicating a potential upside of 19.3% from the current price [3]