Wind Power Industry Research Summary Industry Overview - The wind power industry is primarily focused on the ToB/ToG market, with the return on power generation assets being a core concern, influenced by operating hours, electricity prices, and depreciation costs of power stations [1][2][3] - The domestic wind power sector has evolved through several phases: incubation, rapid growth, correction, and parity. Post-2020, both onshore and offshore wind power have become competitive without subsidies, leading to sustained growth [1][2][3] - It is projected that by 2025, onshore wind power installed capacity will exceed 100 GW, while offshore wind power is expected to reach around 10 GW [1][4] Short-term Market Indicators - The market's short-term health can be assessed through approval, bidding, installation, and grid connection data. Bidding is a leading indicator, typically ahead of installation by about a year [4] - In the first half of 2025, onshore wind bidding has decreased, while offshore wind bidding continues to grow. For 2026, onshore installations are expected to remain high, with offshore installations also anticipated to grow rapidly [5][4] Long-term Market Potential - The domestic wind power market has significant long-term development potential, with abundant onshore and offshore resources. Onshore wind is in a large-scale construction phase, while offshore wind is transitioning from nearshore to deep-sea development [6] - Key factors for future growth include economic viability and the pace of customer adoption. Regions like Zhejiang, Liaoning, and Shandong are advancing deep-sea projects, while Guangdong and Jiangsu are expected to continue their development [6] Importance of Overseas Markets - Overseas markets are crucial for domestic companies, with some achieving significant orders and performance abroad. The overseas onshore wind market is experiencing steady growth, particularly in Asia, Africa, and Latin America, while the offshore market is still in its early stages [7] - In the first half of 2025, projects outside mainland China have seen growth, with expectations for significant increases in installed capacity in the coming years, particularly in Europe and the Asia-Pacific region [7] Industry Chain Structure - The wind power industry chain includes key components such as wind turbines, towers, cables, and substations, with upstream products like steel and copper being critical [8] - The industry faces intense competition, leading to price pressures that affect profit margins. However, recent price corrections have been observed, indicating potential improvements in industry profitability [9] Sector-Specific Insights - The wind turbine sector is expected to see a profitability recovery in the second half of 2025, with rising gross margins due to stabilized supply chains and increased efficiency [10] - The wind turbine components market is experiencing growth, with stable prices and improved profitability in blade production and other components [11] - The tower and pile market is competitive, with domestic companies gaining an advantage in offshore projects due to their established capabilities [12] - The submarine cable industry is characterized by high technical barriers, with leading companies benefiting from increased demand and international expansion opportunities [13][14] Overall Industry Outlook - The wind power industry is currently in a phase of overall prosperity, with expectations for significant earnings growth across various segments in the second half of 2025 [16][18] - Investment in the wind power sector, particularly in offshore wind and international markets, is recommended to capitalize on growth opportunities [16][18]

Investment Rating - The report maintains a positive investment rating for the wind, energy storage, and grid equipment sectors, while indicating challenges for the photovoltaic sector [5]. Core Insights - The industry is experiencing a structural recovery, with significant performance improvements in the wind and energy storage sectors, while the photovoltaic sector is under pressure [1][13]. - The supply-demand mismatch in the photovoltaic industry is gradually being alleviated, with prices entering a bottom range, suggesting potential for future improvement [2][35]. - The wind power sector shows strong bidding data and notable recovery in profitability across various segments [3][24]. - The grid equipment sector continues to benefit from stable global investment, indicating ongoing industry prosperity [4][26]. Summary by Sections Overall Industry Performance - The electric new energy sector faced significant pressure in 2024, but signs of recovery began in Q1 2025, with revenues of 7,275.1 billion yuan, a year-on-year increase of 2.9% [14]. - The overall industry valuation is at historical lows, reflecting market expectations of fundamental pressures [1][28]. Photovoltaic Sector - The photovoltaic sector's main supply chain (silicon materials, wafers, cells, and modules) experienced significant revenue declines of 20% to 40% in Q4 2024 and Q1 2025 [24]. - The inverter segment showed recovery, with revenue growth of 12% and 43% in Q4 2024 and Q1 2025, respectively [24][53]. - Global photovoltaic installations are expected to maintain a stable growth rate of 15-20% [2]. Wind Power Sector - The wind power sector demonstrated a clear recovery in Q4 2024 and Q1 2025, with significant revenue growth across various components, including a 543% increase in bearing segment profits [3][24]. - Domestic wind power prices have stabilized, and bidding volumes have increased significantly, indicating a positive outlook for the sector [3][24]. Grid Equipment Sector - The grid equipment sector continues to show stable growth, benefiting from increased global grid investment, with revenue growth rates of 5% to 13% across various segments [4][25]. - The demand for grid equipment is expected to rise due to the increasing share of renewable energy sources [4][26].

Investment Rating - The investment rating for the company is "Buy" and is maintained [6] Core Views - The company achieved an operating revenue of approximately 790 million yuan in Q1 2025, representing a year-on-year increase of 21.0%. However, the net profit attributable to the parent company was approximately 50 million yuan, a decrease of 17.5% year-on-year, while the net profit after deducting non-recurring gains and losses was approximately 40 million yuan, down 16.1% year-on-year [4][10] Summary by Relevant Sections Revenue Performance - The revenue growth in Q1 2025 is primarily attributed to an increase in offshore wind product shipments. The onshore wind orders completed amounted to approximately 610 million yuan, a slight year-on-year decrease, while offshore wind orders completed were approximately 210 million yuan, a year-on-year increase of 239%. Domestic orders completed were approximately 440 million yuan, up 29% year-on-year, and overseas orders completed were approximately 400 million yuan, an increase of 14% year-on-year [10] Profitability Analysis - The gross profit margin for Q1 2025 was 13.94%, a decrease of 6.06 percentage points year-on-year, mainly due to changes in the customer structure for overseas clients. The company’s operating expenses ratio for Q1 2025 was 8.29%, down 2.99 percentage points year-on-year, with sales, management, R&D, and financial expense ratios showing respective declines [10] Order Backlog - As of the end of Q1 2025, the company had a total of approximately 5.014 billion yuan in executed and pending orders, a year-on-year increase of 21%. This includes 3.76 billion yuan in onshore tower orders (up 18% year-on-year) and 1.23 billion yuan in offshore wind orders (up 42% year-on-year). Domestic orders were approximately 3.79 billion yuan (up 44% year-on-year), while foreign orders were 1.23 billion yuan (down 18% year-on-year) [10] Future Outlook - The company is expected to benefit from rapid growth in domestic wind power installations in 2025, leading to increased shipment and delivery volumes. The company is also actively expanding into overseas markets, with production capacity in Yangzhou expected to contribute to performance flexibility. The estimated net profit attributable to the parent company for 2025 is approximately 320 million yuan, corresponding to a PE ratio of about 19 times [10]

Investment Rating - The report maintains a "Recommended" investment rating for the wind power and grid equipment industry [2]. Core Insights - The wind power sector has shown significant improvement in profitability, driven by strong demand for onshore wind installations and enhanced supply chain performance. The industry is expected to continue its positive trend into the second half of 2025, with domestic onshore wind installations projected to reach 100 GW and state grid investments anticipated to exceed 650 billion yuan [9]. - The grid equipment sector is experiencing sustained growth, supported by domestic grid investments and increasing demand from data centers and international markets. The overall performance of the grid equipment industry remains robust, with positive growth across all segments [9]. Summary by Sections Wind Power - The wind power equipment industry achieved a revenue of 192 billion yuan in 2024, a year-on-year increase of 4.37%, but the net profit decreased by 21.03% to 5.8 billion yuan. In Q1 2025, revenue was 37.2 billion yuan, down 0.79% year-on-year, while net profit rose by 18.74% to 1.2 billion yuan [8][28]. - The analysis of 32 representative companies revealed that the bearing, casting, and forging segments saw substantial profit increases in Q1 2025, with net profit growth rates of 381.85%, 120.39%, and 52.77% respectively. This was attributed to increased demand, price hikes, and product structure optimization [40]. - The turbine and submarine cable segments experienced revenue growth but a decline in net profit, with net profit changes of -27.69% and -1.45% respectively. The tower and pile segment saw revenue and net profit improvements, with major players like Dajin Heavy Industry leading in overseas orders [8][49]. Grid Equipment - The grid equipment industry reported a revenue of 785.2 billion yuan in 2024, a year-on-year increase of 8.21%, while net profit fell by 11.37% to 36.7 billion yuan. In Q1 2025, revenue was 169.8 billion yuan, up 6.58%, and net profit increased by 8.33% to 9.3 billion yuan [9][35]. - All segments within the grid equipment sector showed positive growth, with transformers and combination electrical devices experiencing high growth rates. The transformer segment's net profit growth exceeded 30% for several companies, driven by increased orders from data centers [61][65]. - The report highlights that the grid equipment sector is benefiting from both domestic and international demand, with companies optimizing their production capacities globally to capitalize on the rising trend in grid investments [9][61].

Investment Rating - The report maintains a "stronger than the market" rating for the wind power equipment sector [3]. Core Insights - The Ministry of Ecology and Environment and four other departments released a notification regarding the "National Key Promotion Low-Carbon Technology Catalog (Fifth Batch)," which includes 103 low-carbon technologies, among which are five key wind power technologies [1][12]. - The wind power sector is experiencing a surge in bidding activities, with a total of 300MW of offshore wind power projects and 1095MW of onshore projects being opened for bidding this week [41][42]. - The average bidding price for offshore wind projects has shown a downward trend, with the average price being 3281.61 yuan/kW [2][41]. Industry Dynamics - The wind power sector saw a total of 79.82GW of new installations in 2024, representing a year-on-year growth of 5.16% [1][25]. - The total wind power generation in 2024 reached 991.6 billion kWh, accounting for 10.06% of the total electricity consumption [1][25]. - The prices of raw materials such as scrap steel, copper, aluminum, and epoxy resin have increased, while the prices of medium-thick plates and rebar have decreased [34][39]. Market Performance - The wind power equipment index had a TTM price-to-earnings ratio of 27.09 and a market-to-book ratio of 1.48 [20][21]. - The wind power equipment sector's performance was -0.73% this week, ranking 110th among 124 sub-sectors [18][21]. Company Recommendations - The report recommends focusing on companies like Sany Heavy Energy, Goldwind Technology, and Tianjun Wind Power, which are expected to benefit from the acceleration of offshore wind construction and overseas market expansion [7]. - Companies with strong market positions in large-scale casting and forging components, such as Jinlei Co. and Riyue Co., are highlighted for their potential growth due to successful overseas product certifications [7].