China Securities Co., Ltd. predicts that the wind power industry will remain highly prosperous in 2025, with continued changes and catalysis in the industry.

China Securities Co., Ltd. released the investment outlook for the wind power industry in 2025. In the short to medium term: 1. By 2025, the fundamentals of the wind power industry will be highly prosperous. 2. There will be continuous changes and catalysts in the industry in the short to medium term. 3. In the long term, the proportion of wind power installed capacity is expected to continue to increase, and this has not been fully anticipated by the market. In the short to medium term: The wind power industry fundamentals will be highly prosperous in 2025, which will be a rare year of resonance in wind turbine host, component, and offshore wind segments. Strong demand certainty is expected with: 1. Host: The gross profit margin of hosts will continue to recover in 2025, with an increase in overseas orders, reversing the industry's crisis. 2. Components: Entering the price negotiation phase at the end of the year, with strong bargaining power for components due to abundant tendering opportunities in 24, some components have a price increase basis, and both "quantity and profit" have elasticity in 2025. It is recommended to pay attention to the blade and casting and forging segments. 3. Offshore wind: The issues in Jiangsu and Guangdong have gradually become clear, and it is expected that there will be an additional installed capacity of 12-15 GW in 2025, double the previous year, with high demand prosperity. It is recommended to pay attention to the cable and tower segments. In the short to medium term: In the next six months, the industry will undergo continuous changes and catalysts. 1. Price negotiations: At the end of December, component price negotiations may exceed expectations for components such as casting and forging, and blades. Currently, the market expects blade prices to remain steady, casting and forging prices to remain steady, or to slightly increase. 2. Off-season but not off-season: In 25Q1, component and host companies are expected to have significantly better shipments and profits than in 24Q1 (due to a low base), with good performance expected in 25Q1. 3. Offshore wind projects and deep-sea: Catalysts for the commencement of projects in Jiangsu and Guangdong at the end of 24 to early 25, as well as policies or projects for deep-sea wind power. In the long term: The proportion of wind power in the new energy installed capacity is expected to continue to increase, and this has not been fully anticipated by the market. There are concerns in the market that the installed capacity of the wind power industry will decline after reaching a peak in 2025. However, unlike in the past, due to the characteristics of solar power generation (concentrated electricity prices during peak hours), many operators are actively adjusting the new energy structure to increase the proportion of wind power in installed capacity. They are also assessing the weight of wind power development in each region. Wind power is expected to benefit from the dual effects of increasing demand for new energy installed capacity and increasing structural proportion, and is expected to experience rapid growth.