Twelve wind power manufacturers have jointly signed the “China Wind Power Industry Self-Regulatory Convention on Maintaining a Fair Competition Environment in the Market” with the aim of jointly resisting vicious competition at low prices.
On November 4, six departments including the National Development and Reform Commission and the Ministry of Industry and Information Technology jointly issued the “Guiding Opinions on Vigorously Implementing Renewable Energy Replacement Actions”. The opinion proposes to promote the clustered development of offshore wind power; actively promote innovative renewable energy replacement pilot projects, and carry out pilot applications of deep-sea floating offshore wind power.
The recently disclosed three-quarter report shows that the performance of some wind power companies has achieved positive growth, and gross margins have rebounded.
Looking at new products, offshore continues to be large in megawatts, reaching a maximum of 26 MW, while landwind products remain between 10-15 MW. The agency believes that larger fans can reduce unit costs, and that with the bid price of the whole machine stabilizes, the profit of the whole machine manufacturer is expected to improve. Furthermore, larger fans are driving larger components, and there may be phased supply and demand shortages for large megawatt parts, and parts manufacturers are expected to benefit.
The news that the industry is strengthening its self-discipline may be another benefit. At an exhibition in October this year, 12 wind power manufacturers jointly signed the “China Wind Power Industry Self-Regulatory Convention on Maintaining a Fair Competition Environment in the Market” with the aim of jointly resisting vicious competition at low prices.
Currently, the “internal crisis” of China's wind power industry is serious, and the “price war” is already affecting the healthy development of the industry — many wind power industry insiders put forward this consensus at the forum held during CWP 2024.
China Galaxy Securities released a research report saying that due to economic recovery and the rapid development of AI, global electricity demand continues to grow. Combined with the demand for new energy grids and grid renewal, global grid investment is expected to double to 600 billion US dollars in 2030, and power equipment companies going overseas are expected to fully benefit.
The wind power industry curbs internal consensus and large-scale trend. Profits are expected to improve, long-term demand in the global market is stable, and wind power overseas is expected to benefit.
Furthermore, complex changes in the current global situation will accelerate energy transformation, and demand in the overseas optical storage market will be viewed positively. Energy storage will still be the highest growth track in '24, where high competition and high growth coexist.
Wind power equipment related companies:
Goldwind Technology (02208): In the 2023 ranking of global wind power manufacturers, Chinese wind power companies stood out from the crowd, and the top five occupied four seats. Among them, Goldwind Technology ranked first, and last year's new installations accounted for 13.9% of the global market share. In the first quarter of this year, Goldwind Technology's net profit growth rate dropped sharply. Net profit was only 0.333 billion yuan. The semi-annual report achieved net profit attributable to shareholders of the parent company of 1.387 billion yuan, an increase of 10.83% over the previous year. This means that the company showed significant strength in the second quarter. As of June 30, 2024, Goldwind Technology had a total order volume of 38.4GW, of which external orders totaled 35.6GW, an increase of 26.40% over the previous year. Among these, the vast majority of the company's on-hand orders are 6MW or more, and the corresponding orders are 23.17GW, accounting for 65%.
Dongfang Electric (01072): The company is one of the world's leading suppliers of power generation equipment and power plant engineering contractors. The revenue of the “renewable energy equipment” sector in the first half of the year was 8.2 billion yuan, up 19% year on year. Among them, wind power/hydropower equipment earned 6.7/1.3 billion yuan respectively, up 19%/21% year on year, respectively, and the subsidiary Dongfang Wind Power reversed losses.
China High Speed Transmission (00658): An enterprise group specializing in the development and manufacture of high-speed, heavy-duty, and precision gear drives. Its business covers the fields of wind power gearboxes, rail vehicle gearboxes, industrial gearboxes, robot speed reducers, and new energy vehicle gearboxes. In 2023, the sales revenue of the company's wind power gear transmission equipment business increased by 12.2% over the previous year to 14.89 billion yuan. From a customer perspective, the company has significant customer resource advantages in 2023. Its customers for wind power gear transmission equipment products include not only major fan manufacturers in China, but also internationally renowned complete fan suppliers.
