Key takeaway

In 2025, the significant improvement in performance was mainly driven by a notable increase in wind turbine sales revenue, particularly from overseas markets. In 2025, the company's consolidated gross margin was 14.18%, up 0.38 pct YoY. The period expense ratio for 2025 was 9.6%, down 2.6 pcts YoY, reflecting the economies of scale from significant revenue growth. In 2025, the company's international business achieved sales revenue of RMB18.082bn, up 50.59% YoY, with an international business gross margin of 20.3%, up 10.45 pcts YoY. Both overseas revenue and profitability posted notable growth. In 1Q, the company's wind turbine sales volume increased significantly YoY. From January to March 2026, the company's external sales volume reached 6.04GW, up 133.45% YoY.

Event

For the full year 2025, GOLDWIND posted revenue of RMB73.023bn, up 28.79% YoY, net profit attributable to shareholders of the parent company of RMB2.774bn, up 49.12% YoY, and recurring net profit attributable to shareholders of the parent company of RMB2.613bn, up 47.03% YoY. In 1Q26, the company achieved revenue of RMB15.485bn, up 63.48% YoY; net profit attributable to shareholders of the parent company of RMB907mn, up 59.65% YoY; and recurring net profit attributable to shareholders of the parent company of RMB919mn, up 65.54% YoY.

Quick Take

In 2025, the significant improvement in performance was mainly driven by a notable increase in wind turbine sales revenue, particularly f rom overseas markets. In 2025, the company's consolidated gross margin was 14.18%, up 0.38 pct YoY. The period expense ratio for 2025 was 9.6%, down 2.6 pcts YoY, reflecting the economies of scale from significant revenue growth.

Wind turbine and component sales: Revenue in 2025 was RMB57.2bn, up 46.98% YoY, with sales volume of 26.63GW, up 65.87% YoY. The gross margin was 8.95%, up 3.90 pcts YoY. The gross margin for this segment in 1H was 8%, and our estimates suggest the gross margin for wind turbine and component sales in 2H was better than in 1H, indicating further improvement.

In 2025, the company's international business achieved sales revenue of RMB18.082bn, up 50.59% YoY, with an international business gross margin of 20.3%, up 10.45 pcts YoY. Both overseas revenue and profitability posted notable growth. Our estimates suggest the domestic wind turbine business gross margin also improved slightly in 2025.

Wind farm investment and development: In the wind farm operation and transfer business, the company added 2.50GW of new attributable grid-connected installed capacity for its self-operated wind farms globally in 2025, and transferred attributable capacity of 138.45MW. As of the end of 2025, the global cumulative attributable grid-connected installed capacity was 9.95GW, with attributable wind farm capacity under construction of 2.52GW.

In 2025, revenue from the company's wind farm development business was RMB8.694bn, down 19.90% YoY, with equity transfer gains of RMB137mn; the gross margin for this business was 43.16%, up 3.15 pcts YoY. Wind power services business: Revenue in 2025 was RMB5.716bn, up 3.79% YoY, with a gross margin of 20.36%, down 1.14 pcts YoY. As of the end of 2025, the company's domestic and international post-operation service business had over 50GW of capacity in operation, up 25.9% YoY.

In 2025, the company signed new orders for 150,000 tons of green methanol, with over 750,000 tons of orders on hand; the Xing'an League green methanol project (Phase I, 250,000 tons) achieved a successful one-shot start-up in September 2025.

In 1Q26, the company's gross margin was 16.76%, down 5.02 pcts YoY. The company's gross margin is typically relatively high in the first quarter, which is related to the relatively low proportion of wind turbine sales. In the first quarter of this year, the company's wind turbine sales increased significantly, and the YoY decline in gross margin is expected to be related to the significant increase in wind turbine sales volume and the higher proportion of wind turbine sales in the overall business. In terms of absolute gross profit, gross profit in the first quarter increased by RMB530mn (RMB2.06bn in the same period last year).

In 1Q, the company's wind turbine sales volume increased significantly YoY. From January to March 2026, the company achieved external sales capacity of 6.04GW, up 133.45% YoY; as of the end of March 2026, the company's total orders on hand were 53.93GW, up 5.56% YoY. The company's period expense ratio in 1Q26 was 9.76%, -4.43 pcts YoY and +0.30 pcts QoQ, which is related to the scale effect brought about by the significant increase in sales volume in the first quarter.

In the first quarter, the company achieved net investment income of RMB282mn, mainly from the increase in gains from the transfer of subsidiaries during the period. The scale of wind farm transfers in the first quarter was 102MW, while there were no wind farm transfers in the same period last year. Regarding wind f arm operations, in the first quarter of 2026, the company added 177MW of new grid-connected wind power capacity; as of the end of March 2026, the company's domestic and international existing equity wind farm installed capacity was approximately 10.03GW; as of the end of the first quarter of 2026, the company's domestic and international wind farm equity capacity under construction was 3.06GW.

Earnings forecast and valuation: We estimate the company's operating revenue for 2026-2028 to be RMB101.22bn, RMB116.68bn, and RMB123.16bn, respectively. Net profit attributable to shareholders of the parent company is expected to be RMB4.02bn, RMB5.72bn, and RMB6.61bn, respectively, corresponding to P/E multiples of 28.6x, 20.1x, and 17.4x. We maintain a "Buy" rating.

Risks

1. Slower-than-expected implementation of the planning policies on wind power.

2. Project execution risk: If wind power project capacity and construction progress are below expectations, it may constrain large-scale industry development.

3. The intensified industry competition may impair profitability: competition in the wind power industry is relatively fierce; if the competition in the industry intensifies, price wars may impair the profitability of enterprises.

4. Industry cost reduction falling short of expectations: The large-scale development of wind power still depends on upstream component cost reductions; if upstream cost reductions fall short of expectations, it will hinder the large-scale development of wind power.

5. The risk of raw material price fluctuations: the upstream raw materials of wind power are mainly steel, among others, and large fluctuations in steel and other raw material prices may weigh on the stability of the relevant enterprises' earnings.