Core Viewpoint - The outlook for wind power demand in both domestic and overseas markets is optimistic for 2026, driven by rising prices for onshore wind turbines, accelerated industry exports, and the potential flexibility of offshore wind resources in China, which is expected to lead to a comprehensive improvement in industry chain profitability [4][5]. Group 1: Domestic Wind Power Demand - Domestic wind power installations are expected to reach 130-140 GW in 2026, continuing growth from a high base of 120-130 GW in 2025, primarily driven by onshore wind power [4][8]. - Offshore wind power is projected to add 10-12 GW in 2026, a significant increase from 7-9 GW in 2025, although the industry still needs to enhance its overall market conditions [4][10]. - The domestic wind power bidding volume for 2025 is expected to exceed 130-140 GW, indicating strong resilience despite a high base from the previous year [5][8]. Group 2: Industry Trends and Profitability - Three major trends are anticipated to drive a comprehensive improvement in profitability across the Chinese wind power industry in 2026: 1. Onshore wind turbine gross margins are expected to increase by 2-3 percentage points in 2026 compared to 2025, with further improvements anticipated in 2027 [4][19]. 2. Accelerated overseas exports of Chinese wind turbines, with significant growth in the European offshore wind market [4][22]. 3. The domestic offshore wind sector is poised for rapid growth, with the potential to achieve annual new installations of over 15 GW during the 14th Five-Year Plan period [4][34]. Group 3: Export Growth and Market Expansion - Chinese wind turbine exports are accelerating, with new orders expected to exceed 20 GW in 2024, significantly higher than historical levels [4][22]. - The European market is identified as a key area for growth, with Chinese companies likely to achieve substantial breakthroughs in the coming years [4][26]. - The offshore wind sector in Europe is currently experiencing high construction activity, although challenges such as project delays and financing issues need to be addressed [4][27]. Group 4: Offshore Wind Potential - The domestic offshore wind sector has substantial resource reserves and is supported by favorable policies, indicating potential for rapid growth during the 14th Five-Year Plan [4][36]. - By the end of 2025, approximately 60 GW of unbuilt offshore wind projects have been allocated to owners, providing a solid foundation for future development [4][36]. - The construction intensity of offshore wind projects is expected to gradually increase, with a significant number of projects in the pipeline [4][38].

Demand: Onshore Wind Capacity Supported, Positive Outlook for Offshore Growth - In 2025, onshore wind capacity is expected to exceed 100GW, with a year-on-year growth of over 25% [2][11] - For offshore wind, the expected capacity for 2025 is between 8-10GW, with a year-on-year increase of 30%+ anticipated for 2026 [12][11] - The "14th Five-Year Plan" period is projected to see an average annual installation of 110-120GW for onshore wind and over 20GW for offshore wind [11][12] Offshore Cable: Voltage Levels Increasing, Leading Players Strengthening - The market size for offshore cables is expected to reach 10.7 billion yuan in 2025, a 62% increase year-on-year, with a compound annual growth rate of 26% from 2025 to 2030 [2][11] - The gross margin for 220kV cables remains stable at 35-40%, while higher voltage cables show promising margins of 45-55% [2][11] Tower and Pile: Domestic Profitability Turning Point, International Expansion Opportunities - Domestic capacity utilization rates have rapidly increased since Q2 2025, indicating a profitability turning point for related companies [2][11] - Internationally, companies are expanding their market share with significant profitability from single pile deliveries [2][11] Wind Turbines: Price Stabilization and Profitability Improvement Expected in 2026 - Wind turbine prices have stabilized, with a rebound of over 5% in bidding prices, leading to improved profitability for domestic manufacturers expected in 2026 [2][11] - Offshore orders and deliveries for wind turbine companies are significantly increasing, with offshore margins exceeding domestic margins by 5-10 percentage points [2][11] Investment Recommendations: Positive Outlook for Offshore Sector - The upcoming deep offshore projects are expected to catalyze growth, with a potential upward adjustment in mid-to-long-term installation levels [2][11] - Recommended stocks include those in the offshore wind sector such as 大金重工, 东方电缆, and others, as well as wind turbine manufacturers like 金风科技 and 明阳智能 [2][11] European Offshore Wind: Accelerated Planning Amid Energy Crisis - Following the energy crisis due to the Russia-Ukraine conflict, European countries are ramping up offshore wind planning, with auction volumes expected to increase significantly [2][21] - The average annual compound growth rate for European offshore wind installations is projected to reach 21% from 2025 to 2030 [2][37]