HuaChuang Securities: The wind power industry maintains high prosperity in 25H1, and industry profitability continues to improve

According to the Zhitong Finance APP, Huachuang Securities released a research report stating that benefiting from the strong demand for cumulative winning bids, the newly installed wind power capacity in H1 2025 reached 51.4 GW, a year-on-year increase of 98.9%, with offshore/onshore additions of 2.5/48.9 GW, year-on-year increases of 200%/+95.5%. In H1 2025, the core targets of the wind power sector achieved revenue of 229.81 billion yuan, a year-on-year increase of 24.27%, and a net profit attributable to the parent company of 12.69 billion yuan, a year-on-year increase of 15.01%. From the perspective of various sub-sectors, in Q2 2025, the net profits attributable to the parent company for tower piles/bearings/castings/blades/others were 670 million/230 million/1.08 billion/860 million/760 million yuan, with year-on-year increases of +54.7%/turning profitable/+10.7%/131.3%/+12.4%, and quarter-on-quarter increases of +35.4%/34.4%/40.5%/57.7%/49.3%.

The main viewpoints of Huachuang Securities are as follows:

The wind power industry’s installed capacity bidding increased in H1 2025, and the prosperity is expected to continue in the second half of the year.

Benefiting from the strong demand for cumulative winning bids, the newly installed wind power capacity in H1 2025 reached 51.4 GW, a year-on-year increase of 98.9%, with offshore/onshore additions of 2.5/48.9 GW, year-on-year increases of 200%/+95.5%. According to the performance materials of Goldwind, the bidding for wind turbines has continued to grow since 2025, with a bidding volume of 71.9 GW in the first half of the year, a year-on-year increase of 8.77%, including offshore/onshore bids of 5/66.9 GW, year-on-year decreases of -7.4%/+10.2%.

Onshore wind prices have bottomed out and rebounded, while offshore wind prices have stabilized.

According to statistics from Huachuang Securities, the average winning bid price for onshore wind (excluding towers) in Q1-2 2025 was 1459/1543 yuan/kW, with quarter-on-quarter increases of +2.74%/+5.72%. The average winning bid price for offshore wind (excluding towers) in Q1-2 2025 was 2402/2602 yuan/kW, with quarter-on-quarter changes of -14.08%/+8.31%.

The sector's revenue achieved continuous growth in H1 2025, and profitability has significantly recovered.

In the first half of 2025, the core targets of the wind power sector achieved revenue of 229.81 billion yuan, a year-on-year increase of 24.27%, and a net profit attributable to the parent company of 12.69 billion yuan, a year-on-year increase of 15.01%; in Q2 2025, revenue reached 136.44 billion yuan, a year-on-year increase of 26.84%, and a quarter-on-quarter increase of 46.11%, achieving a net profit attributable to the parent company of 7.78 billion yuan, a year-on-year increase of 17.1%, and a quarter-on-quarter increase of 57.99%. Benefiting from the growth in demand, the sector's performance has seen significant growth.

The sector's inventory and contract liabilities have reached a five-year high, and industry prosperity is expected to continue.

In Q2 2025, the inventory of the wind power sector was 119.439 billion yuan, a year-on-year increase of 19.86%, and a quarter-on-quarter increase of 9.57%; contract liabilities were 66.821 billion yuan, a year-on-year increase of 40.1%, and a quarter-on-quarter increase of 4.37%. The inventory amount of the wind power sector in the second quarter has increased both year-on-year and quarter-on-quarter, maintaining a high level. The year-on-year growth rate and scale of contract liabilities are the highest in the past five years.

The main engine and submarine cables will enter a peak delivery season in the second half of the year, and profitability is expected to further improve. In Q2 2025, the net profit attributable to the parent company for the main engine/cable sector was 1.71 billion/2.47 billion yuan, a year-on-year increase of +3.5%/-4.3%, and a quarter-on-quarter increase of +132.2%/45.3%; contract liabilities were 45.51 billion/11.52 billion yuan, a year-on-year increase of +62.3%/22%, and a quarter-on-quarter increase of +2.06%/6.05%.

Significant improvement in the performance of upstream components such as tower piles/bearings/castings and forgings/blades

From the perspective of various sub-sectors, in Q2 2025, the net profit attributable to the parent company for tower piles/bearings/castings and forgings/blades/others was 670 million/230 million/1.08 billion/860 million/760 million yuan, achieving year-on-year increases of +54.7%/turning profitable/+10.7%/131.3%/+12.4%, and quarter-on-quarter increases of +35.4%/34.4%/40.5%/57.7%/49.3%; contract liabilities were 6.23 billion/10 million/620 million/820 million/2.12 billion yuan, achieving year-on-year changes of -8.9%/+25.6%/+118.7%/-26.9%/+7%, and quarter-on-quarter changes of +15.88%/-4.76%/+34.04%/+12.36%/+6.03%.

Investment recommendation: Focus on three main lines of wind power

1. The demand for offshore wind in domestic deep-sea Europe is intertwined, benefiting the offshore wind industry chain; 2) Main engine prices have stopped falling and are rising, improving profitability, combined with the logic of going overseas; 3) Select leading components in bearings, gearboxes, blades, and castings and forgings, with incremental business or incremental overseas market targets.

Recommended stocks include Dongfang Cable (603606.SH), MYSE (601615.SH), Dajin Heavy Industry (002487.SZ), XQL Slewing Bearing (300850.SZ), Yunda Co., Ltd. (300772.SZ), Zhongtian Technology (600522.SH), Times New Materials (600458.SH), Goldwind (002202.SZ), Haili Wind Power (301155.SZ), Hengtong Optic-Electric (600487.SH), 3S (605305.SH), Sany Renewable Energy (688349.SH), TSP (300129.SZ), and MY Electric (301291.SZ).

Risk warning

Wind power installations may fall short of expectations, overseas market expansion may not meet expectations, and fluctuations in commodity prices, etc