Summary of Offshore Wind Pile Industry Conference Call Industry Overview - The offshore wind pile industry is expected to recover starting from the second half of 2024, with significant growth in shipment volumes anticipated in 2025, particularly in Jiangsu and Guangdong provinces [1][5] - The domestic offshore wind power installation capacity is projected to reach 10GW in 2025, with potential to exceed 15GW in 2026 based on current bidding projects, providing strong growth support for related companies [1][7] Key Points and Arguments - **Profitability Improvement**: The profitability of the offshore wind pile segment is expected to improve due to the marginal effects of depreciation and amortization as the industry scales up, leading to a sustained increase in profitability in Q2 and Q3 of 2025 [1][6] - **Deep Sea Projects**: Deep sea projects are identified as a major source of growth elasticity for companies, with projects in Zhejiang, Shandong, and Liaoning set to commence in 2025, transitioning product specifications towards jacket structures [1][8] - **Increased Production Difficulty**: As water depth increases, the production and construction of single piles become more challenging, leading to a higher penetration rate of jacket structures, which require advanced welding technology and equipment [1][9][10] Market Dynamics - **Domestic Market**: The domestic offshore wind construction pace is accelerating, particularly in Jiangsu and Guangdong, with significant increases in shipment volumes expected in 2025 compared to 2024 [1][5] - **Historical Competition**: The market competition in the offshore wind pile industry has been relatively stable, with minor fluctuations in processing fees and prices. The demand volume has been the primary influencing factor [1][4] International Market Opportunities - **Growing Overseas Demand**: The overseas demand for offshore wind power is rapidly increasing, with a medium to long-term plan requiring 15-20GW annually, compared to only 3GW last year. This presents export opportunities for domestic companies, especially in jacket products [1][11][12] - **Advantages of Domestic Companies**: Domestic companies have significant advantages in production capacity, cost efficiency, and delivery reliability, positioning them well to capture overseas market opportunities [1][12] Strategic Responses - **Head Companies' Strategies**: Leading domestic companies are actively expanding into overseas markets, with notable actions including stable deliveries by Dajin, acquisitions by Tiensun, and new base constructions by Haili to meet future demand [2][13] - **Short-term and Long-term Profit Outlook**: In the short term, the industry is expected to experience a recovery in Q2 and Q3 of 2025, while the long-term outlook remains positive due to the acceleration of deep sea projects and increasing overseas demand [1][14]

Summary of the Offshore Wind Pile Industry Conference Call Industry Overview - The offshore wind pile industry is experiencing a turning point in Q2 2025, driven by accelerated project commencement in offshore wind projects, with new construction volume increasing by over 20% year-on-year from January to May, primarily in Guangdong and Jiangsu provinces [1][2] - The domestic offshore wind installation capacity is expected to exceed 10 GW this year and reach 15 GW next year, supported by a robust pipeline of projects nearing 28 GW [1][3] Key Insights and Arguments - The heavy asset nature of the pile segment results in a lower fixed asset turnover rate compared to other segments like submarine cables and wind turbines, with depreciation costs accounting for approximately 15% of total costs [1][3][5] - A significant increase in shipment volume is anticipated, which will dilute unit costs and drive rapid recovery in net profit per ton, leading to substantial year-on-year growth in Q2 performance [1][3] - The deep-sea development trend and the potential of the offshore wind export market are significant growth drivers for the industry [1][6] Market Dynamics - The application ratio of jacket foundations is expected to rise due to their cost-effectiveness in deep-water environments, with widespread adoption in regions like Guangdong and Zhejiang [1][7][8] - The overseas offshore wind market is in its early development stage but has optimistic long-term goals, with expected annual installation capacity exceeding 15 GW in the future, particularly in Europe and the Asia-Pacific region [1][9] Opportunities for Domestic Companies - Domestic companies such as Dajin, Tienshun, and Haili are seizing opportunities in the overseas market, having achieved large-scale order acquisition and actively advancing international projects [2][10] - The current market conditions present a favorable opportunity for investors to focus on leading companies in the offshore wind sector, especially as 2025 is identified as a year of significant growth [2][11] Additional Important Points - The construction peak season from April to October is expected to lead to a noticeable increase in shipment volumes [2][6] - The complexity of jacket production limits new capacity, which is primarily concentrated among leading companies, contributing to a stable industry structure [8]

Investment Rating - The report maintains a "Positive" investment rating for the offshore wind pile industry [12] Core Insights - Recent market attention on the pile segment has increased, with stock price fluctuations primarily driven by performance, which is closely linked to downstream construction volume and company shipment volume [5][8] - In the short term, the offshore wind pile industry is expected to benefit from increased downstream construction in Q2, leading to a dual increase in volume and profit, thereby releasing performance elasticity [9][11] - The long-term outlook suggests that deep-sea development will open up growth opportunities for the pile industry, while overseas offshore wind installations are anticipated to experience significant growth, with domestic companies accelerating overseas expansion [10][11] Summary by Sections Introduction: Volume as the Core Factor Affecting Pile Segment Performance - The report identifies that stock price movements in the pile segment are mainly influenced by performance, which is affected by downstream construction and shipment volumes [8][18] Short-term: Q2 Expected to Mark a Performance Turning Point, with Support for 2025-2026 Outlook - The offshore wind pile industry is projected to benefit from increased construction activity in Q2, with a year-to-date increase in offshore wind construction volume of 23% [9][24] - The report anticipates that the increase in shipments will lead to significant cost dilution effects, enhancing profitability for related companies [9][22] Long-term: Deep-sea Development Opens Industry Growth Space, Offshore Wind Expansion Releases Growth Elasticity - The shift towards deep-sea offshore wind is expected to create long-term growth opportunities for the pile industry, with significant growth anticipated in overseas installations [10][44] - The report highlights that domestic companies are accelerating their overseas expansion efforts, which is expected to release performance growth elasticity [10][11] Investment Recommendations - The report recommends focusing on domestic offshore wind pile companies that are expected to benefit from increased construction activity in the short term and have growth potential in the long term due to deep-sea development and overseas expansion [11][86]