Renewable Energy Policy - Japan's government is planning to increase public support for offshore wind power projects [1] Industry Challenges - Rapidly increasing costs are threatening Japan's renewable energy goals [1]

Core Insights - Denmark's Orsted and Vestas are advocating for European nations to expedite permitting processes, enhance auction terms, and invest in power grids to unlock growth potential in the offshore wind sector [1][2] - The offshore wind industry is shifting focus to Europe due to a stagnant U.S. market under President Trump's administration, which has halted several offshore developments [6] Industry Growth Potential - Vestas anticipates global offshore wind capacity to increase by 20-25% annually until 2030, contingent on improved licensing and auction frameworks in Europe [2] - Orsted expresses optimism about the improving terms of auctions across various European markets, particularly regarding contracts for difference that stabilize power prices [5] Auction Challenges - Several European countries, including Denmark, Britain, Germany, and the Netherlands, have struggled to attract bidders for offshore wind permits due to insufficient subsidies and revenue guarantees [3][4] - Vestas' finance chief highlights the recurring mistakes made by European governments in auction designs that place full price risk on developers amid rising costs [4] Company Performance - Orsted reported a third-quarter net loss of 1.70 billion Danish crowns ($265 million), a significant decline from a profit of 5.17 billion crowns the previous year, primarily due to U.S. tariffs and project halts [6] - Vestas' shares rose approximately 13% following a new share buyback announcement and better-than-expected third-quarter earnings, driven by strong performance in its onshore business [7]

Summary of Ningbo Orient Wires & Cables (NBO) Conference Call Company Overview - **Company**: Ningbo Orient Wires & Cables (603606.SS) - **Industry**: Offshore Wind Power and Cable Manufacturing Key Financial Highlights - **3Q25 Net Profit**: Rmb441 million, representing a **53.1% year-over-year (yoy)** increase and a **129.6% quarter-over-quarter (qoq)** increase [1][2][13] - **Revenue**: Rmb3,066 million in 3Q25, up **16.5% yoy** and **34.2% qoq** [2][12] - **Gross Profit Margin**: Increased to **22.3%**, up **1.3 percentage points (ppts) yoy** and **6.6 ppts qoq** [2][13] - **Backlog**: Rmb19.5 billion as of October 18, 2025, with Rmb11.7 billion from submarine and high-voltage land cable orders [3][14] Market Dynamics - **Offshore Wind Demand**: China aims to add at least **15GW of offshore wind capacity annually from 2026 to 2030**, nearly double the average of **8GW per year from 2021 to 2025** [1][4] - **Installed Capacity Targets**: The goal is to reach **1,300GW by 2030**, **2,000GW by 2035**, and **5,000GW by 2060**, significantly higher than previous targets [4] Order and Delivery Insights - **Strong Order Flow**: NBO's backlog increased by **1.1 times yoy** with a significant portion from high-margin products [3][14] - **Delivery Expectations**: Anticipated increased deliveries in **4Q25 and 2026**, including exports for the Inch Cape Offshore wind project in the UK [3][18] Earnings Forecast - **Earnings Revision**: 2025-2027 earnings estimates raised by **4-8%** due to higher submarine cable sales [1] - **Target Price**: Increased to **Rmb81.00/share**, representing a **37% upside** from the current price of **Rmb66.20** [6][9] Additional Insights - **Cost Reduction**: The unit capital expenditure (capex) for offshore wind projects decreased to **Rmb9,000-12,500/kW** in 2024, down from **Rmb9,500-14,000/kW** in 2023 [29] - **Competitive Pricing**: The average levelized cost of electricity (LCOE) for new offshore wind power has reduced to **Rmb0.3/kWh**, making it competitive with market tariffs [29] Conclusion - NBO is positioned to benefit from the accelerating demand for offshore wind power in China, supported by a robust order backlog and favorable market conditions. The company's financial performance in 3Q25 reflects strong growth, and future earnings are expected to improve further due to increased submarine cable sales and project deliveries.

Industry News - One of Japan's leading regions for offshore wind power is urging authorities to reissue a tender for two critical projects [1] Project Updates - Mitsubishi withdrew from the planned offshore wind power developments [1]

Industry Development - The first US-flagged boat to connect offshore wind power has begun work in New York, marking a milestone for the offshore wind sector [1] Political/Economic Context - The offshore wind sector faces potential threats from Trump's policies [1]

Industry Development - The first US-flagged boat to connect offshore wind power has begun work in New York, marking a significant milestone for the offshore wind power sector [1] Political & Economic Factors - The offshore wind power sector faces potential threats from Trump's policies [1]

Industry Development - The first US-flagged boat to connect offshore wind power has begun work in New York [1] - This marks a milestone for the offshore wind power sector [1] Potential Risks - The sector is under threat from Trump [1]