2025-08-26 15:02Summary of Wind Power Industry Conference Call Industry Overview - The wind power industry has seen a rebound in bidding prices since October last year, with continuous increases in March and June this year, exceeding a 10% rebound from the lowest point [1][4] - The domestic wind power installation capacity is expected to reach 115 GW (onshore 105 GW, offshore 10 GW), representing a year-on-year growth of 30%-40%, driven by the "install as much as possible" policy at the end of the 14th Five-Year Plan [1][4] - The offshore wind power market is expected to remain prosperous for the next two to three years, with intense competition anticipated until 2027 [1][4] Key Points and Arguments - The decline in steel prices (down nearly 20% from the beginning of the year to July) and improvements in management and scale effects have significantly enhanced the gross profit margins of wind turbine companies, leading to a potential earnings recovery that may exceed expectations [1][2][4] - The decrease in government bond yields has lowered the financing costs for state-owned enterprises, with an acceptable minimum internal rate of return (IRR) now above 5% [1][4] - The European market is experiencing strong demand as countries aim to reduce dependence on Russian oil and gas, with offshore wind power utilization hours exceeding 4,000 hours annually [1][4] Market Dynamics - Recent performance in the wind power sector has been strong, with many companies reporting better-than-expected results for the second quarter, such as Goldwind's second-quarter earnings reaching 920 million RMB, a significant increase of over 60% quarter-on-quarter [2] - The wind power sector is currently undervalued, with turbine companies trading at approximately 10 times earnings and component companies at about 15 times earnings for the next year [3][8] Future Catalysts - The main catalysts for the wind power industry include strong performance in the second quarter and anticipated better results in the third quarter, as well as new order opportunities, particularly from overseas markets like the UK and France [7] - The potential for significant profits exists once companies enter overseas markets, especially given the current strategic retreat of leading overseas wind power companies [5][6] Additional Insights - The current valuation of wind power companies is at historical lows, with major recommendations including Goldwind, Yunda, and Mingyang Smart Energy, as well as component manufacturers like Dongfang Cable and Hailey [8] - The industry is expected to benefit from a surge in overseas project bidding, which could serve as a significant catalyst for growth [7]