Bank of America Securities: Expects the profitability of the onshore wind power industry to continue to recover, optimistic about cable companies more than wind turbine companies
Bank of America Securities released a research report stating that it maintains a positive outlook on the onshore wind power industry chain. Driven by the resilience of wind power installation demand, the rebound in turbine prices, and the increase in the proportion of high-margin businesses, the industry's profitability is continuously recovering. Currently, the bank is more optimistic about cables than turbines, as Zhongtian Technology and Dongfang Cable are currently undervalued, while turbine companies' valuations have become reasonable. The bank has raised its net income forecasts for Zhongtian Technology and Dongfang Cable for 2026 to 2027 by an average of 9%, with target prices raised to RMB 24 and RMB 81, respectively, both rated "Buy." Additionally, the bank has raised its profit forecasts for Goldwind and MYSE for 2026 to 2027 by an average of 8% and 13%, respectively, to reflect the accelerated growth of overseas and offshore wind power businesses. It maintains a "Neutral" rating on Goldwind's H shares and A shares, with target prices raised to HKD 14.5 and RMB 17.3, respectively; MYSE's target price is raised to RMB 18, rated "Buy."
According to the Zhitong Finance APP, Bank of America Securities has released a research report stating that it maintains a positive outlook on the mainland wind power industry chain. Driven by the resilience of wind power installation demand, the rebound in wind turbine prices, and the increase in the proportion of high-margin businesses, the industry's profitability is continuously recovering.
Currently, the bank is more optimistic about cables than wind turbines, as ZTT (600522.SH) and NBO (603606.SH) are currently undervalued, while the valuations of wind turbine companies have become reasonable. The bank has raised its net income forecasts for ZTT and NBO for 2026 to 2027 by an average of 9%, with target prices raised to RMB 24 and RMB 81, respectively, both rated as "Buy."
Additionally, the bank has raised its profit forecasts for Goldwind (02208) and MYSE (601615.SH) for 2026 to 2027 by an average of 8% and 13%, respectively, to reflect the accelerated growth of overseas and offshore wind power businesses. It maintains a "Neutral" rating for Goldwind's H shares and A shares (002202.SZ), with target prices raised to HKD 14.5 and RMB 17.3, respectively; MYSE's target price is raised to RMB 18, rated as "Buy."
