CITIC SEC: The domestic wind turbine Industry is expected to enter a phase of simultaneous increase in volume, price, and profit, leading to a dual recovery in performance and valuation.

CITIC SEC pointed out that domestic wind power, with its relatively high returns and better friendliness to the grid, shows a significant recovery trend in demand. Coupled with the "anti-involution" in the Industry Chain, the supply and demand pattern and competitive landscape of the wind turbine Industry are expected to improve steadily. This is thanks to: 1. The focus of the wind turbine Industry's development gradually returning to product quality and sustainable healthy Operation, with land-based wind turbine prices rebounding from the bottom; 2. The domestic offshore and overseas wind turbine markets have vast potential and are at a turning point for volume expansion, with barriers to entry and profitability generally significantly higher than in the domestic land-based wind turbine market. Domestic leading manufacturers are expected to enter an accelerated growth phase after years of planning, opening up medium to long-term growth space. Therefore, driven by improved "dual-sea" sales structure, recovery of turbine execution prices, and manufacturers' multiple cost-reduction pathways, the domestic wind turbine Industry is expected to enter a stage of simultaneous increase in volume, price, and profit, leading to a dual recovery in performance and valuation.