GOLDWIND(SZ:002202)2025-04-03 04:16Summary 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.