Summary of the Conference Call on China's Wind Power Industry Industry Overview - The conference call focuses on the **wind power industry in China**, highlighting a significant turnaround after a down-cycle from 2022 to 2024, attributed to self-regulation and robust demand [3][12][39]. Key Points Demand and Installation Forecasts - **Domestic demand** is expected to remain resilient during the 15th Five-Year Plan (FYP), with forecasts of annual installations of **106GW for 2025**, **103GW for 2026**, and **105GW for 2027**, potentially reaching **~120GW per annum from 2028 to 2030**, including **15-20GW offshore annually** [4][12][45]. - Public tendering for wind projects was robust, with **21.5GW tendered** from June to August 2025, marking a **21% year-on-year increase** [13][45]. Industry Dynamics - The industry has achieved a **price and profitability turnaround** without significant government intervention, driven by: 1. **Increased demand** for wind installations, with a **79% year-on-year rise** in new installations in the first seven months of 2025 [40]. 2. **Recovery in bidding prices** for Wind Turbine Generators (WTG), with onshore prices rising **8%** and offshore prices **12%** in 2025 [52]. 3. **Supply chain consolidation** and improved quality focus among manufacturers due to past losses and accidents [15][41]. Investment Preferences - Preference for **key WTG component suppliers** and **submarine cable manufacturers** over WTG Original Equipment Manufacturers (OEMs) due to better margin recovery prospects [5][14]. - **ZTT** is highlighted as a preferred investment due to its strong valuation and expected growth in submarine cable deliveries [20]. Company-Specific Insights - **Sinoma S&T** upgraded to Overweight (OW) with a price target of **Rmb48.2**, reflecting a **98.9% increase in net profit estimates for 2025** and **117.1% for 2026** due to recovery in gross profit margins across its business segments [19][21]. - **Ningbo Orient** remains OW despite a **39.4% reduction in net profit estimates for 2025**, with a price target of **Rmb69.63** [22][23]. - **Riyue** and **Goldwind** are maintained at Equal Weight (EW) with adjusted price targets reflecting lower profit forecasts due to rising costs and reduced sales expectations [24][25][29]. Risks and Challenges - Potential risks include **delays in offshore project approvals**, **competition affecting offshore WTG prices**, and **increased costs for outsourced machining** [16][24][29][37]. - The industry faces challenges from **overseas shipment growth slowing down** and **delayed revenue recognition** for key offshore projects [30][32]. Conclusion - The wind power industry in China is positioned for a strong recovery, driven by robust demand and improved pricing dynamics. Key players in the supply chain are expected to benefit from ongoing margin recovery and favorable market conditions, making them attractive investment opportunities in the near term [42][43].

Summary of Goldwind Science & Technology Co Ltd Conference Call Company Overview - **Company**: Goldwind Science & Technology Co Ltd (2208.HK) - **Industry**: Wind Energy Key Financial Highlights - **Net Profit**: Increased by 39.8% year-on-year (yoy) to Rmb1,860 million in 2024 despite significant asset impairment losses which rose by 195.4% yoy to Rmb767 million [1] - **4Q24 Performance**: Net profit dropped by 83.1% yoy to Rmb68 million due to higher impairment losses and lower gross profit (GP) margin from wind turbine generator (WTG) sales, which was 4.9% (below the target of 6%) [1][2] - **Final Dividend**: Increased by 40% yoy to Rmb0.14 with a payout ratio of 33.3% [1] Revenue and Sales Performance - **WTG Sales Revenue**: Rose by 18.2% yoy to Rmb32.9 billion with sales volume increasing by 16.6% yoy to 16,052.99 MW [2] - **Orders on Hand**: External customer orders reached 45,083 MW, a 51.4% increase yoy, with overseas orders comprising 15.6% of total orders [2] - **Average WTG Bidding Price**: Experienced fluctuations, falling to Rmb1,403/kW in April 2024 but recovering to Rmb1,527/kW by December 2024 [2] Operational Insights - **Wind Farm Development Revenue**: Declined by 0.6% yoy to Rmb10.9 billion, with a GP margin drop of 7.3 percentage points to 40.0% due to lower utilization and tariff declines [7] - **Investment Gains**: Reported a significant decrease in investment gains from wind farm disposals, down 61.4% yoy to Rmb666.24 million [7] Financial Position - **Net Operating Cash Inflow**: Increased by 24.9% yoy to Rmb2,316 million, while investing cash outflow surged by 213.9% yoy to Rmb5,724 million [8] - **Gearing Ratio**: Increased by 0.6 percentage points to 65.1% [8] Market Position and Future Outlook - **Market Share**: Goldwind held a 22% market share in China and 15.9% globally in 2024 [2] - **Future Expectations**: Anticipated expansion of GP margin for WTG sales in 2025 due to a rising sales mix from high-margin businesses, including exports and offshore projects [9] - **New Overseas Orders**: Reached a record high from 47 countries, indicating strong international demand [9] Valuation and Investment Recommendation - **Target Price**: Set at HK$9.00, representing a potential upside of 75.8% from the current price of HK$5.12 [3] - **Expected Total Return**: 79.7%, including a dividend yield of 3.9% [3] Risks - **Key Risks**: Include fewer-than-expected new orders, less favorable government policies, and lower-than-expected WTG margins [14] This summary encapsulates the essential financial metrics, operational insights, and market positioning of Goldwind Science & Technology Co Ltd, providing a comprehensive overview for potential investors and stakeholders.