GOLDWIND(SZ:002202)2024-10-28 16:39Summary of Conference Call Company and Industry Overview - The conference call involved a discussion about the wind power industry and the company's performance within it, specifically focusing on the developments in the wind power sector and the company's operational status for Q3 2024 [1][4]. Key Industry Insights - Wind Power Cost Reduction: The cost of onshore wind power has decreased by 70% from $0.11 per kWh in 2010 to $0.033 per kWh in 2013, with China's onshore wind power reaching $0.027 per kWh. Offshore wind power costs have also dropped by 63%, from $0.203 per kWh in 2010 to $0.075 per kWh in 2023, with China's offshore wind power at $0.07 per kWh [2]. - Installed Capacity Growth: As of September, global new wind power installed capacity reached 39.1 GW, a year-on-year increase of 16.8%. China's cumulative installed capacity reached 479.6 GW, accounting for 15.2% of the power generation mix [2]. - Public Tendering: By September, domestic public tenders added 119.1 GW, a 93% increase from the previous year, indicating strong market enthusiasm [2][3]. - Government Support: Recent policies from the government, including the establishment of a dual carbon emission system and new energy system plans, reflect strong support for the renewable energy sector [3]. Company Performance Highlights - Sales Growth: The company achieved external sales capacity of 9,709.76 MW from January to September, a 9% year-on-year increase. Sales of units above 6 MW accounted for 57.6% of total sales [4]. - Order Backlog: As of September, the company's order backlog reached a record high of 44.28 GW, with external orders at 41.38 GW [4]. - International Expansion: The company has expanded its international business, achieving breakthroughs in Morocco, the Philippines, Georgia, and Namibia, with operations in 42 countries across six continents [5]. Financial Performance - Revenue Growth: For the first three quarters of 2024, the company reported revenue of 35.839 billion, a 65.2% increase year-on-year. The gross profit margin improved to 16.43%, up 2.21 percentage points [6][7]. - Profitability Improvement: The company’s operating profit increased by 5.31 billion, driven by a gross profit increase of 17.2 billion and a reduction in asset impairment losses [7]. - Debt Management: The company’s interest-bearing debt ratio decreased from 55% in Q1 to 42% in Q3, indicating improved financial stability [9]. Market Outlook and Challenges - Price Stability: Wind turbine prices are currently stable, with some large projects potentially causing temporary price dips. The company anticipates a gradual improvement in gross margins due to cost reductions and order reserves [12][13]. - International Orders: The company expects to secure 4 GW of international orders this year, with projections for 5 GW next year, indicating a positive trend in overseas business [12][13]. - Profit Margin Projections: The overall gross margin is expected to exceed 6% this year, with a target of 8% for the next year, driven by increased international and offshore sales [25][26]. Additional Insights - Service Fees: The company’s international service fees are significantly higher than domestic fees, reflecting the value of services provided in different markets [28]. - Future Sales Strategy: The company plans to maintain strict criteria for project sales, ensuring high asset concentration and compliance with internal management standards [32]. This summary encapsulates the key points discussed during the conference call, highlighting the company's performance, industry trends, and future outlook.