Company Overview - The company, Yinchuan Weili Transmission Technology Co., Ltd., successfully listed on the Shenzhen Stock Exchange's Growth Enterprise Market in August 2023, marking a significant milestone in its development [1] - The company has made substantial investments in R&D and capacity expansion post-listing, with the first wind power gearbox successfully assembled and certified in 2023 [1][2] R&D Investment - R&D expenses for 2023 amounted to CNY 42.56 million, with a projected increase to CNY 51.35 million in 2024, reflecting a growth of 20.65% [2] - Cumulative R&D investment over the last three fiscal years totals CNY 126.11 million, with the company holding 203 authorized patents as of March 31, 2025 [2] Product Advantages - The company's wind power gearbox is recognized as a critical component in wind turbine technology, featuring advantages such as low noise, high efficiency, and lightweight design [3] - The gearboxes are manufactured using high-quality alloy steel and advanced processing techniques, ensuring durability and performance [3][4] Market Expansion - The company has established global service networks in key markets, including Hamburg, Chennai, and Tokyo, enhancing customer response capabilities [4] - It has successfully entered the supplier lists of major international wind power companies, including Siemens Gamesa and Adani [4] Industry Barriers - Key barriers in the wind power gearbox industry include high technical requirements, significant capital investment, stringent customer certification processes, and the need for brand reputation [2] Sustainable Development Initiatives - The company’s subsidiaries have received approvals for projects under the "Thousand Villages and Ten Thousand Towns Wind Action," with a total installed capacity of 65 MW, promoting the development of clean energy [4]

Group 1: Company Overview - Wei Li Transmission was established in 2003 in Yinchuan, with over 1,000 employees [2] - The main business includes R&D, production, and sales of wind power gearboxes and speed increasers, with key products such as yaw gearboxes and pitch gearboxes [2] - The company officially listed on the Shenzhen Stock Exchange's Growth Enterprise Market in August 2023 [2] Group 2: Strategic Importance of Smart Factory Project - The wind power speed increaser smart factory project will fill regional industrial gaps and strengthen location barriers, addressing the demand for high-power speed increasers [3] - The project will enhance the product matrix and improve the company's influence in the wind power sector [3] - Smart factory implementation will leverage over 200 patents to boost production efficiency and support product innovation [3] Group 3: Future of Wind Power Industry - The company holds a long-term optimistic view on the wind power industry, with steady growth in global and domestic installation demand expected [3] - Policies like the "Shagao Desert" base and offshore wind development provide clear growth support [3] - The company’s existing technical and regional advantages align well with industry trends [3] Group 4: Technical Barriers in Speed Increaser Manufacturing - Wind power speed increasers are critical components with high design and manufacturing requirements, ensuring reliability and longevity while being compact and lightweight [4] - The manufacturing process is complex, requiring precise calculations and rigorous testing under various conditions [4] Group 5: Advantages of Company’s Speed Increaser Products - The company's speed increasers are known for their smooth engagement, low noise, good sealing, high efficiency, and lightweight [4] - Advanced manufacturing techniques enhance durability and performance, achieving high precision in gear components [4] Group 6: Participation in "Thousand Villages and Ten Thousand Towns Wind Action" - The company’s subsidiaries have received approvals for projects totaling 65 MW in wind power generation capacity [4] - These projects will promote the synergy between the company's renewable energy and gearbox businesses, enhancing market competitiveness [4] Group 7: Maintaining Operational Capability Amid Cost Pressures - In 2025, the company aims to innovate while adhering to strategic principles, focusing on the renewable energy sector and lean management [4] - Efforts will include expanding overseas markets, optimizing supply chains, and enhancing product structure to meet market demands [4]

Core Viewpoint - Qingdao High-tech Zone has successfully selected 7 enterprises as green factories for 2025, reflecting significant progress in promoting green manufacturing and industrial transformation [1] Group 1: Green Factory Selection - The 7 selected enterprises include Qingdao Boning Futen Intelligent Transportation Technology Development Co., Ltd., TPV Technology (Qingdao) Co., Ltd., Phase Change Energy Technology (Qingdao) Co., Ltd., Qingdao Pangu Intelligent Manufacturing Co., Ltd., Qingdao Kejie Robot Co., Ltd., Aoyuan Jin (Qingdao) Metal Container Co., Ltd., and Qingdao Oubo Fang Pharmaceutical Technology Co., Ltd. [1] - The selection is a recognition of the enterprises' green development practices and the effective construction of a green manufacturing system in Qingdao High-tech Zone [1] Group 2: Energy Efficiency and Environmental Impact - TPV Technology has invested 42 million yuan in five major energy-saving projects, achieving an annual energy saving of 3.4 million kWh and a reduction of approximately 3,300 tons of CO2 emissions [2] - Phase Change Energy Technology focuses on developing high-performance phase change energy storage materials, enhancing energy utilization efficiency [2] - Pangu Intelligent integrates green design throughout the lifecycle of its wind power lubrication systems, improving operational reliability and reducing carbon emissions during maintenance [2] Group 3: Support and Training Initiatives - Qingdao High-tech Zone provides data support for enterprises' energy consumption and carbon emissions monitoring, and organizes training sessions to foster a collaborative learning environment [2] - The zone invites industry experts to address core issues faced by enterprises in the green manufacturing assessment process [2] Group 4: Green Factory Development Trends - Qingdao High-tech Zone has established a tiered development pattern for green factories, with 7 national green factories accounting for 10.3% of the city's total [3] - The newly added green factories are distributed across key industries such as information technology, high-end equipment manufacturing, and biomedicine, marking a shift towards high-end, intelligent, and green industrial transformation [3] Group 5: Integration of New Technologies - The zone actively promotes the integration of AI, IoT, and big data with green manufacturing, aiming to create benchmarks for low-carbon transformation in the industrial sector [4] - Qingdao High-tech Zone is leveraging green factories to drive the entire industrial ecosystem towards green, low-carbon, and high-end upgrades, contributing to the city's dual carbon goals [4]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has secured a significant expansion order in Europe, enhancing earnings certainty. The total value of the order is 430 million RMB, expected to be delivered in 2026 [8] - The company's overseas business has seen a breakthrough, becoming the main driver of overall performance growth, with a substantial increase in project delivery compared to the previous year [8] - The company plans to issue H shares to invest in a deep-sea assembly base in Europe, with a total investment of 1 to 1.2 billion RMB, aiming to enhance local production capabilities and reduce costs [8] - Profit forecasts remain unchanged, with expected net profits for 2025-2027 at 1.1 billion, 1.5 billion, and 2 billion RMB, respectively, reflecting year-on-year growth rates of 133%, 37%, and 32% [8] Financial Projections - Total revenue is projected to increase from 3,780 million RMB in 2024 to 10,009 million RMB in 2027, with a year-on-year growth rate of 19.40% in 2027 [1] - Net profit attributable to the parent company is expected to rise from 473.88 million RMB in 2024 to 1,995.54 million RMB in 2027, with a year-on-year growth rate of 32.36% in 2027 [1] - The latest diluted EPS is forecasted to grow from 0.74 RMB in 2024 to 3.13 RMB in 2027 [1] Market Data - The closing price of the company's stock is 31.79 RMB, with a market capitalization of approximately 20,274.05 million RMB [5] - The company has a price-to-earnings (P/E) ratio of 42.78 for 2024, decreasing to 10.16 by 2027 [1]

Group 1: Company Overview - Weili Transmission was established in 2003 in Yinchuan, with over 1,000 employees. The main business focuses on the R&D, production, and sales of wind power gearboxes and speed increasers, including wind power yaw gearboxes, pitch gearboxes, and speed increasers for new energy vehicles [2][3]. - The company officially listed on the Shenzhen Stock Exchange's Growth Enterprise Market in August 2023, marking a significant milestone in its development [2]. Group 2: Strategic Initiatives - The company has proactively recruited employees for its speed increaser smart factory to support operations, which may temporarily increase costs but is expected to drive capacity and revenue growth in the long term [3]. - The decision to initiate a private placement is driven by three main factors: strong market demand due to the global wind power industry's growth, the need for capacity expansion to meet production requirements, and the competitive landscape necessitating advanced R&D and scale production [3]. Group 3: Industry Barriers - Key barriers in the wind power speed increaser industry include: - **Technical Barriers**: High precision requirements and rigorous testing processes create significant entry challenges [4]. - **Financial Barriers**: The capital-intensive nature of the industry requires substantial investment in equipment and R&D [4]. - **Customer and Certification Barriers**: Long verification cycles (2-3 years) and strict supplier admission criteria hinder new entrants [4]. - **Brand and Talent Barriers**: Established brands dominate the market, making it difficult for new companies to gain trust and assemble skilled teams [4]. Group 4: Quality Control Measures - The company has established a quality assurance center and a comprehensive quality management system to oversee the entire production cycle, ensuring high standards from raw material selection to production processes [4]. - The implementation of a self-developed wind power gearbox testing platform allows for rigorous testing under simulated operational conditions, ensuring product reliability and quality [4].

Investment Rating - The report maintains a "Buy" rating for companies such as Jin Feng Technology, Daikin Heavy Industries, and Yun Da Co., while recommending "Hold" for companies like Tai Sheng Wind Energy and Jin Lei Co. [1][1][1] Core Insights - The report highlights the acceleration of wind power construction in coastal provinces, driven by the release of key project lists and favorable regulations [3][6][6] - The report notes significant growth in wind power installations, with a 134.21% year-on-year increase in new installations from January to May 2025, totaling 46.28 GW [1][24][24] - The report emphasizes the positive impact of new regulations in the UK and ongoing projects in China, which are expected to boost the wind power sector [6][10][10] Industry Dynamics - The Hainan Power Trading Center has released draft guidelines for the sustainable development pricing mechanism for new energy projects, applicable to projects commissioned after June 1, 2025 [1][10][10] - The report tracks stock performance, noting that companies like Shangwei New Materials and Zhongji United have seen significant stock price increases, while others like Guoda Special Materials have experienced declines [1][18][21] Market Performance - The wind power equipment index has a TTM price-to-earnings ratio of 32.59 and a market-to-book ratio of 1.64, indicating a stable valuation environment [2][20][20] - The report indicates that the wind power equipment sector underperformed compared to the broader market, with a decline of 0.54% in the wind power equipment index [2][13][13] Installation Data - As of May 2025, the cumulative installed capacity of wind power in China reached approximately 567.49 million kW, reflecting a year-on-year growth of 23.10% [24][30][30] - The report details that the first quarter of 2025 saw 13.64 GW of new land-based wind power installations, a decrease of 7.90%, while offshore installations increased by 42.03% to 0.98 GW [24][28][28] Material Prices - The report notes fluctuations in raw material prices, with increases in medium-thick plates and rebar, while prices for copper and aluminum have decreased [33][37][37]

Company Overview - 威力传动 was established in 2003 in Yinchuan, with over 1,000 employees. The main business focuses on the R&D, production, and sales of wind power gearboxes and related products [2][3]. - The company officially listed on the Shenzhen Stock Exchange's Growth Enterprise Market in August 2023 [2]. Business Operations - Key products include wind power yaw gearboxes, pitch gearboxes, speed increasers, and various gearboxes for engineering machinery and new energy vehicles [2][3]. - 威力传动 has established itself as a significant supplier for major domestic wind power companies and has entered the qualified supplier lists of international firms like Siemens-Gamesa and Adani [2][4]. Funding and Investment - The company plans to fund the construction of a smart factory for speed increasers through self-owned funds, bank loans, and secondary market refinancing, with a proposed credit limit of up to 3 billion CNY [3]. - A plan to raise up to 600 million CNY through a private placement of A-shares has been approved, with funds allocated for the smart factory and working capital [3]. Workforce Expansion - Approximately 400 new employees are being recruited to support the smart factory, ensuring the necessary skills for high-precision production [3]. Industry Barriers - Key barriers in the wind power gearbox industry include: - **Technical Barriers**: High precision and complex design requirements [3]. - **Financial Barriers**: Capital-intensive nature of the industry [3]. - **Customer and Certification Barriers**: Long verification cycles and strict supplier admission criteria [3]. - **Brand and Talent Barriers**: Importance of brand reputation and the need for multidisciplinary talent [3]. Market Outlook - The global wind power installed capacity is expected to reach 981 GW from 2025 to 2030, with an average annual increase of 164 GW, driving demand for core components like speed increasers [4]. - The Chinese market is projected to add 86 GW in 2024, a year-on-year increase of 11%, significantly outpacing global growth [4]. - The market for main gearboxes in China was approximately 3.136 billion USD in 2023, expected to grow to 4.263 billion USD by 2030 [4]. International Expansion - The company has established global service points in key markets such as Hamburg, Chennai, and Tokyo to enhance customer responsiveness and support its international strategy [5]. - Plans to strengthen service capabilities and optimize supply chain management to increase market share in the international wind power sector [5]. Employee Incentives - A stock incentive and employee shareholding plan was implemented in July 2024 to attract and retain talent, enhancing team cohesion and competitiveness [5].

Core Viewpoint - Company Wei Li Transmission (300904.SZ), known as the "first stock of China's wind power gearbox," has initiated a new financing plan to raise up to 600 million RMB, primarily for its "Wind Power Gearbox Smart Factory (Phase I)" project, reflecting potential operational pressures faced by the company [2][5][12]. Group 1: Financing and Investment Plans - The company plans to issue A-shares to no more than 35 specific investors, aiming to raise a total of no more than 600 million RMB, with 500 million RMB allocated to the "Wind Power Gearbox Smart Factory (Phase I)" project and the remaining 100 million RMB for working capital [2][4][5]. - The total investment for the "Wind Power Gearbox Smart Factory (Phase I)" project is 2 billion RMB, which is expected to achieve an annual production capacity of 2,000 wind power gearboxes upon full operation [3][11]. - The project is positioned as the only large-scale research and production base for wind power gearboxes in western China, indicating the company's strategic intent to expand its core business [11]. Group 2: Financial Performance and Challenges - The company reported a significant decline in performance, with 2024 revenues of 345 million RMB, a 37.6% decrease year-on-year, and a net loss of 29.55 million RMB, marking a 172% decline compared to the previous year [17][18]. - In the first quarter of 2025, despite a 284.46% increase in revenue to 11 million RMB, the net loss further expanded to 1.755 million RMB, indicating ongoing operational challenges [19]. - The company attributed its performance decline to intensified market competition, increased product complexity due to larger wind turbines, and rising operational costs from hiring additional staff for the new factory [18][19].

Group 1 - The company plans to issue A-shares to raise up to 600 million yuan for the construction of a wind power gearbox smart factory and to supplement working capital [1] - The fundraising will involve issuing no more than 21.715 million A-shares to no more than 35 specific investors, with a lock-up period of six months post-issuance [1] - The total investment for the smart factory project is 2 billion yuan, with 500 million yuan expected to be raised from this issuance, aiming to increase annual production capacity by 2,000 wind power gearboxes upon full operation [1] Group 2 - The company specializes in the R&D, production, and sales of wind power gearboxes and speed increasers, contributing precision transmission solutions for the renewable energy sector [2] - Once the new project is completed, it will become the only large-scale wind power gearbox R&D and production base in Western China, promoting rapid development in related industries such as intelligent manufacturing and logistics [2] - The issuance will increase the company's total share capital, and while it may dilute indicators like return on equity and earnings per share in the short term, the company's profitability is expected to improve over time as the project generates economic benefits [2]

Investment Rating - The report maintains an "Overweight" rating for the electric equipment and new energy industry [2] Core Viewpoints - The upstream prices of the photovoltaic industry chain have rebounded, with transaction activity increasing and average transaction prices rising above 40,000 yuan/ton [4][41] - The report highlights the importance of macro guidance and industry governance by national ministries to promote high-quality development in the photovoltaic sector [4][41] Market Review - As of July 17, 2025, the electric equipment industry has increased by 1.78% over the past two weeks, outperforming the CSI 300 index by 0.1 percentage points, ranking 15th among 31 industries [12][13] - The wind power equipment sector has decreased by 3.17%, while the photovoltaic equipment sector has increased by 5.22% [16][18] - The top three stocks in terms of growth over the past two weeks are Tongguan Copper Foil, Xinling Electric, and Yamaton, with increases of 51.16%, 36.20%, and 35.17%, respectively [20][21] Valuation and Industry Data - As of July 17, 2025, the PE (TTM) for the electric equipment sector is 26.11 times, with sub-sectors showing varied valuations: - Motor II: 50.78 times - Other Power Equipment II: 41.98 times - Photovoltaic Equipment: 18.47 times - Wind Power Equipment: 32.48 times - Battery: 26.29 times - Grid Equipment: 24.80 times [23][26] Industry News - The report notes that as of July 16, 2025, the average transaction price for multi-crystalline silicon n-type re-investment material is 41,700 yuan/ton, with a week-on-week increase of 12.4% [32][41] - The Ministry of Industry and Information Technology emphasized the need to regulate low-price disorderly competition in the photovoltaic industry to enhance product quality and promote sustainable development [4][41] Company Announcements - The report includes various company announcements, such as Tianqi Materials signing a procurement agreement to supply at least 550,000 tons of electrolyte products [39] - Beijing Ke Rui won a bid for a project with an estimated amount of approximately 322 million yuan [40] Weekly Perspective - The report suggests focusing on leading companies in technology and scale within the photovoltaic sector, as the industry is expected to undergo a new round of price adjustments [41][42]