Summary of Wind Power Industry Conference Call Industry Overview - The wind power industry is benefiting from both domestic and overseas market resonance, with strong support from high-quality development and policy backing in the domestic renewable energy sector. [1][5] - The construction costs of wind power projects are decreasing, making internal rates of return (IRR) attractive. It is expected that onshore wind power will grow by 50% and offshore wind power will nearly double during the "14th Five-Year Plan" to "15th Five-Year Plan" period. [1][5] Key Insights and Arguments - **Domestic Market Growth**: The domestic offshore wind power market is projected to have a strong competitive edge by 2026, with significant investment opportunities due to higher-than-expected profit margins. [1][6] - **Cost and Profitability**: The cost side benefits from operational leverage, with components like piles and cables showing significantly higher profit margins in export markets compared to domestic products. [1][6] - **Technological Advancements**: High-gravity markets such as deep-sea and overseas projects are showing clear advantages, with increased demand for high-margin products like 500 kV DC cables. [1][8] Valuation and Investment Opportunities - The wind power sector's valuation has adjusted to bottom levels, with wind turbine companies at around 10 times earnings and component manufacturers like piles and cables at 15-20 times. [3][12] - Short-term catalysts include the advancement of domestic deep-sea projects, annual report forecasts indicating a 50% growth, and new CFD tenders in the UK expected to boost overseas orders. [10][11] Future Outlook - The long-term outlook for the wind power industry is positive, with both domestic and overseas markets expected to resonate during the "15th Five-Year Plan" period, providing strong support for the industry. [5][9] - By 2026, the overall growth trend in the wind power sector is clear, particularly in offshore wind segments, with significant potential for profit margin expansion in piles, turbines, and cables. [9][12] Specific Areas of Focus - Key areas to watch include deep-sea projects and export opportunities, particularly in piles and turbines, which show superior profitability compared to domestic products. [8][13] - Companies with operational leverage and those positioned in high-demand segments are recommended for investment consideration. [8][12]

Summary of Wind Power Industry Conference Call Industry Overview - The wind power industry is expected to see improved conditions in 2025, with Goldwind raising its annual bidding forecast to 160GW and shipment expectations for 2026 to 33GW. Major manufacturers have record-high orders, with Goldwind at 55GW, Yunda at 46GW, and Mingyang at 46GW [1][2][3]. Key Insights and Arguments - **Bidding and Pricing Trends**: - In August 2025, domestic land wind bidding volume reached 9.94GW, a month-on-month increase of 114% and a year-on-year return to positive growth. The average bidding price for land wind in August 2025 was 1,629 RMB/kW, marking a new high since 2024. The average prices for key models are as follows: - 5-7 MW: 1,789 RMB/kW, up 30% from the 2024 low - 8-9 MW: 1,563 RMB/kW, up 35% from the 2020 low - Above 10 MW: 1,280 RMB/kW, up 17% from the 2024 low [2][3][4]. - **Offshore Wind Projects**: - As of now, 10.8GW of offshore wind projects have been bid or connected to the grid in 2025, with 28.6GW in reserve. The rapid progress of deep-sea projects in Zhejiang is indicated by the initiation of 500kV DC cable bidding [5][6]. - **Policy Support**: - Domestic policies are increasingly supporting offshore wind development, with multiple initiatives launched this year. In Europe, the UK has extended the CFD contract period, and France has allocated 11 billion euros for floating offshore wind development, expected to boost performance and order growth in Q3, Q4, and next year [5][6]. Additional Important Content - **Market Share and Technology Trends**: - The 5-7 MW main models account for 61.7% of the market share, suitable for current domestic wind resource conditions of about 5 m/s. Major manufacturers like Goldwind, Yunda, and Mingyang continue to focus on mature and profitable mid-power machines [6][7]. - **Project Progress**: - In the first half of 2025, 2.5GW of wind projects were successfully connected to the grid, with 8.5GW under construction. Notable projects include 1.8GW in Hainan and others in Guangdong and Shandong [8][9]. - **Profitability and Valuation Recovery**: - Wind turbine manufacturers are experiencing profitability and valuation recovery due to increased delivery volumes, declining commodity prices, rising bidding prices, and a recovery in power station transfer business. For instance, Goldwind's sales volume in the first half of 2025 was 10.6GW, a 107% year-on-year increase [11]. - **Demand for 500kV Cables**: - There is high demand for 500kV cables in Guangdong and Zhejiang, benefiting companies like Dongfang Cable and Zhongtian Technology. The European market is also releasing significant orders, contributing to the performance growth of related companies [12].

Summary of Key Points from Conference Call Industry Overview - The conference call focuses on the offshore wind power industry, particularly the developments in submarine cable projects and related infrastructure in China [1][2][3]. Core Insights and Arguments - **Significant Increase in Offshore Wind Power Deliveries**: In Q3, there was a notable increase in offshore wind power delivery volumes, with companies like Oriental Cable reporting substantial inventory and contract liabilities, indicating a trend towards large-scale deliveries [1][3]. - **Optimistic Delivery Expectations**: Major manufacturers expect that the delivery volume in the second half of the year will significantly exceed that of the first half, suggesting a recovery in industry sentiment [1][3]. - **Upcoming Tender Activities**: The second half of the year is expected to see an increase in submarine cable tender activities, with the initiation of the 500 kV DC submarine cable pre-qualification tender at the Z15 site in Zhejiang [1][2][4]. - **Policy Support**: There is a strong expectation of policy support from the government, which is anticipated to stimulate market growth and development in the offshore wind sector [1][5][17]. - **Year-on-Year Capacity Growth**: The newly installed grid-connected capacity in the first half of the year reached 2.49 GW, a 200% increase year-on-year, primarily due to a low base from the previous year and delays in projects [1][6]. - **Projected Wind Power Installation**: The total wind power installation for the year is expected to exceed 8 GW, potentially reaching 10 GW, with a conservative market expectation of 6-8 GW, representing a 50%-100% increase compared to last year [1][9]. Additional Important Insights - **Project Pipeline**: Currently, there are 2.55 GW of projects confirmed for grid connection, with an additional 8.3 GW of projects under construction, indicating a robust project pipeline [1][7]. - **Market Dynamics**: The market for 500 kV AC submarine cable orders is expected to increase significantly, with major orders anticipated in Guangdong province [1][11]. - **Future Market Expectations**: Despite a bullish market, investor sentiment is cautious due to previous speculative activities. Strong performance in company earnings and long-term planning are necessary to regain investor confidence [1][15]. - **Deep Sea Wind Power Projects**: The total capacity of deep sea wind power projects has reached 42.62 GW, with significant progress in demonstration projects, particularly at the Z15 site [1][16]. - **Long-term Industry Outlook**: The industry is expected to enter a long-term layout phase supported by policy initiatives, with a potential positive impact on performance and planning expectations [1][18]. This summary encapsulates the key points discussed in the conference call, highlighting the current state and future outlook of the offshore wind power industry in China.