2025-08-26 13:23Summary of Goldwind Science & Technology Conference Call Company Overview - Company: Xinjiang Goldwind Science & Technology (Goldwind) - Industry: Wind Energy - Market Position: Leading manufacturer of wind turbine generators (WTG) in China, established in 1998, listed on Shenzhen and Hong Kong Stock Exchanges Key Financial Highlights - Recurring Net Profit Growth: Achieved a 156% year-over-year (YoY) growth in recurring net profit to Rmb1.0 billion in H125 from Rmb402 million in H124, indicating a 140% YoY growth in Q225 to Rmb510 million from Rmb212 million in Q224 [2][3] - Turbine Sales Volume: Reached 10.6 GW in H125, up 107% from 5.2 GW in H124 [3] - Gross Margin Improvement: Overall wind turbine gross margin improved to 8% in H125 from 3.8% in H124, with domestic margins recovering to 1.3% from -4.2% in H124 [3] - Overseas Revenue: Revenue from overseas markets in 1H25 was Rmb8.4 billion, a 75% YoY increase, contributing 29% to total revenue compared to 24% in 1H24 [3] - Order Backlog: Turbine order backlog stood at 51.8 GW as of H125, up 46% YoY, with overseas orders accounting for 7.4 GW, up 42% YoY [4] Market Outlook - Investor Sentiment: Anticipated positive market reaction due to strong performance in the core turbine business, particularly driven by exports and volume growth [6] - Price Target: UBS has set a 12-month price target of Rmb13.00, with a current price of Rmb10.56 as of 22 August 2025 [7][27] - Rating: The stock is rated as "Buy" [7] Risks and Opportunities - Downside Risks: Include potential increases in WTG manufacturer unit costs, government restrictions on wind power capacity additions, and higher financing costs [12] - Upside Risks: Include potential increases in turbine average selling price (ASP), government upgrades to wind power addition targets, and lower financing costs [13] Analyst Insights - Catalysts: Positive catalysts expected from accelerating export turbine growth and recovery in domestic offshore wind project buildout [15] - Earnings Forecast: Analysts expect the next earnings update to likely lead to a positive surprise compared to consensus expectations [15] Additional Metrics - Market Capitalization: Rmb44.6 billion (approximately US$6.21 billion) [7] - Debt Metrics: Net debt to EBITDA projected at 3.8x for 12/25E [7] - Earnings Per Share (EPS): Projected EPS of Rmb0.82 for 12/25E, increasing to Rmb1.33 by 12/27E [9] This summary encapsulates the key points from the conference call, highlighting the financial performance, market outlook, risks, and opportunities for Goldwind Science & Technology.