According to Zhitong Finance APP, GF Securities released a research report stating that the wind power industry chain has shown significant results in reversing internal competition. In the first half of 2025, the profit share of the complete machine and cable segments will continue to rise, with leading companies' non-recurring net profits doubling year-on-year. The industry's ROE has stabilized and rebounded, and the bank believes that the wind turbine and gearbox segments have entered the industry's bottom and are expected to be the first to see a profit turning point. The casting and forging, and blade segments align with low capital expenditure characteristics. As industry demand recovers and the capacity for large megawatt casting and forging becomes scarce, leading high-speed current ratio companies are expected to benefit; the ROE absolute value and historical percentile of the cable and equipment sectors are at high levels, indicating good industry prosperity.
<h2>GF Securities' main viewpoints are as follows:</h2>
Performance Growth
The profits of the wind power industry chain are mainly concentrated in the complete machine and cable segments, with leading companies showing excess profits. According to Tonghuashun data, the non-recurring net profit attributable to the parent company of the complete machine segment for 2023/2024/2025H1 accounts for 17.44%/22.04%/23.57% of the total industry chain profit, respectively; the cable segment accounts for 26.22%/27.43%/26.22% (including optical fiber cables). The self-discipline agreement in the wind power industry showed initial results in November 2024, with some leading companies in certain segments achieving excess profits, including Windey (non-recurring net profit attributable to the parent company of 128 million yuan, +128.6% year-on-year), DHI (non-recurring net profit attributable to the parent company of 563 million yuan, +250.5% year-on-year), and Zhongji United (non-recurring net profit attributable to the parent company of 244 million yuan, +97.8% year-on-year).
Profitability Space
The reversal of internal competition in the wind power industry chain has shown initial results, with overall ROE (weighted, same below) basically stable. As capacity continues to clear, some leading companies in certain segments have begun to stabilize and rebound their gross profit margins in 25H1 due to their cost advantages. Debt repayment ability: In the first half of 2025, the asset-liability ratios of the complete machine, tower, and submarine cable segments increased year-on-year, and other companies in the industry chain also borrowed to alleviate financial pressure. Operating efficiency: Due to the high construction rate of land wind in the first half of 2025, the asset turnover and inventory turnover rates of companies in the tower &amp; foundation and complete machine segments increased year-on-year, while other segments remained generally stable.
Financial Framework
The bank believes that the wind turbine and gearbox segments have entered the industry's bottom and are expected to be the first to see a profit turning point. Compared to traditional industry research methodologies that use single indicators such as gross profit margin or net profit margin to judge the industry profit cycle while ignoring the impact of balance sheet structure on corporate behavior, such as maintaining product supply despite cash losses to maintain supply chain status, the bank chooses to comprehensively judge the industry's prosperity cycle position from the complete financial statements of the profit and loss statement, balance sheet, and cash flow statement. The bank selects net asset return rate, quick ratio, and fixed asset turnover rate (including construction in progress) as explicit financial indicators to filter the supply and demand cycle stages of the industry, serving as indicators for profit cycle, liquidity, and construction rate, respectively. Through the financial framework constructed above, the bank judges that wind turbines and gearboxes meet the financial characteristics of &#34;low ROE + low quick ratio + relatively high fixed asset turnover rate (including construction in progress)&#34; and are expected to be the first to welcome a profit turning point. The casting and forging, and blade segments align with low capital expenditure characteristics. As industry demand recovers and the capacity for large megawatt casting and forging becomes scarce, leading high-speed current ratio companies are expected to benefit; the ROE absolute value and historical percentile of the cable and equipment sectors are at high levels, indicating good industry prosperity
Investment Recommendations
In the wind turbine and gearbox sectors, it is recommended to pay attention to Goldwind, Mingyang Smart Energy, Sany Renewable Energy, Windey, GDTC, and Weili Transmission. The casting and forging, as well as blade sectors, are characterized by low capital expenditure, and leading high-speed ratio companies are expected to benefit; it is suggested to focus on Jinlei Co., Ltd., Riyue Co., Ltd., Xinqianglian, and Times New Materials. For towers and foundations, it is recommended to pay attention to DHI, Haile Wind Power, Taisheng Wind Energy, Tienshun Wind Energy, and Tianneng Heavy Industry. In the cable sector, it is suggested to focus on Dongfang Cable, Zhongtian Technology, Hengtong Optic-Electric, and Qifan Cable.
Risk Warning: Policy and installation demand may fall short of expectations; price risks in the industrial chain; fluctuations in raw material prices; tight supply of electronic components

300772

002202

02208

688186

688349

002487

Guangfa Securities released a research report indicating that the wind power industry chain has entered the bottom phase and is expected to see a profit turning point first. The profit share of the complete machine and cable segments continues to rise, with leading enterprises experiencing significant year-on-year growth in net profit. The industry's ROE has stabilized and rebounded, with castings and blades benefiting from low capital expenditure characteristics, resulting in a good overall industry prosperity. The self-discipline agreement in the wind power industry is beginning to show results in 2024, with some leading enterprises demonstrating excess profits

Zhitong

Windey

Goldwind

GOLDWIND

GDTC

Sany Renewable Energy

Guangfa Securities: Complete machines and gearboxes are stabilizing at the bottom, and the wind power industry's prosperity continues