Zheshang: the increase in the usage of one GW in multiple links of the offshore wind industry chain resonates with the triple logic of offshore + overseas + cost improvement.

Zheshang released a research report stating that there is a shortage of European local production capacity in the segments of tower foundations, offshore cables, and large components. Chinese production capacity is expected to obtain overflow orders, combined with China's advantages in raw materials and labor costs, it is expected to further expand its market share. Offshore cables have high technical barriers, long certification and production cycles, and as offshore distances increase, the value of offshore cables is expected to increase. The supply and demand of offshore tower foundations is tight overseas, with production limited by terminal resources. The industry structure is good and the use of foundation per GW decreases with large-scale production. Additionally, large components are concentrated in China, and the offshore wind volume overseas is expected to drive both quantity and price increases. Zheshang's main points are as follows: With multiple policies driving installation, global wind power installation is expected to increase to 66GW, with a 23-33 year CAGR of 20% for global offshore wind power. In Europe, there is a strengthened demand for energy independence, with countries significantly increasing their offshore wind power installation goals. The EU's cumulative offshore wind power installation target for 2030 is 111GW, with the UK at 50GW, and Germany at 30GW. From 2023 to 2033, Europe's offshore wind power installation will grow from 3.8GW to 28.2GW, with a CAGR of 22.3%. In North America, the US has released a "Strategic Plan for Offshore Wind Energy," planning to reach cumulative offshore wind power installation capacities of 30GW by 2030 and 110GW by 2050. In 2022, the US government reinstated a 30% tax credit for offshore wind power under the IRA Act, indicating a strong potential for offshore wind power construction in the US. During China's 14th Five-Year Plan period, around 57GW of new offshore wind power capacity is planned. China's offshore wind power has experienced a boom, becoming the largest offshore wind power market. Each province in China has set a new offshore wind power installation target of around 57.2GW. As the end of the 14th Five-Year Plan approaches, there is increasing pressure for offshore wind power integration, with approvals for offshore wind power projects speeding up since 2024. Predictions indicate that from 2023 to 2033, China's offshore wind power installation will grow from 6.3GW to 20.0GW, with a CAGR of 12.2%. Large-scale development to reduce electricity costs, with deep-sea regions opening up new development opportunities. Recommendations for investment: Focus on offshore cables, tower foundations, large components, and complete machine segments. Risks: Lower-than-expected wind power installation; changes in national policies; fluctuations in raw material prices; intensified market competition.