On October 10th, crrc corporation's "Qihang No." 20MW floating offshore electric machine unit was successfully launched at Jiangsu Sheyang CRRC Times Green Equipment Industrial Park.

"Qihang" as the world's largest power offshore floating wind turbine, breaks geographical restrictions, expanding the territory of wind power generation to the broader deep blue ocean.

Jiangsu 2.65GW project: The company is expected to start delivery in December, with a small portion of confirmed income in the fourth quarter of this year, and the majority in the first and second quarters of next year for delivery and confirmation.

Subsequent deep-sea projects: Haili is about to reach a comprehensive cooperation with Zheneng. In all future deep-sea projects in Zhejiang and other projects, Haili may have a significant participation weight.

Market expects the start date of Dafeng Guoxin and Dafeng Three Gorges projects to be in December this year, with Sheyang project slightly further along. Expected to be completed in the first half of next year and connected to the grid next year.

Impact of other offshore wind projects: The 8.5GW Jiangsu competitive bidding project and subsequent 20GW deep-sea projects will be rapidly initiated.

From an investment perspective: The logic of offshore wind is relatively simple, few segments with over 50% growth certainty next year, some of which resonate with domestic and international demand, with low stock prices and performance elasticity could be calculated next year (corresponding to very cheap valuation).

Specific feedback on the basic situation is as follows:

Jiangsu issues resolved, followed by Guoxin and Three Gorges Dafeng projects expected to start in December. This not only affects 2.65GW, but also needs to be seen:

1) Jiangsu Phase II competes for 8.5GW to start at the end of this year/early next year (expected to start & deliver in 2025/2026)

2) Subsequent provinces encountering issues similar to Jiangsu can refer to Jiangsu as a model, no longer causing project delays of over 2 years

3) The far-reaching offshore demonstration projects are a total of 20GW in Hainan, Guangdong, Fujian, Zhejiang, Shanghai, and Shandong, with projects north of Fujian expected to accelerate rapidly in the second half of next year.

Zhixingtong Finance and Economics App learned that GTJA issued a research report stating that global onshore wind power is growing steadily, with emerging markets showing vitality; offshore wind power is accelerating, and its proportion is expected to continue to rise. With abundant offshore wind resources, rapid technological progress driving continuous improvement in economics, the growth of offshore wind is expected to accelerate continuously. The overseas wind power industry chain is in a tense supply-demand situation, with domestic wind turbine, tower, and offshore cable companies taking the lead in going overseas to receive orders, expected to boost performance.

In the wind turbine section, benefiting from the rising volume of emerging overseas wind power markets, global wind power leaders are gradually shrinking their global businesses, driving rapid increase in market share of Chinese wind turbine leaders, and excellent gross margin of overseas wind turbine orders. In the tower section, the production capacity of European tower piles continues to be tight, with the ratio of overseas orders of domestic tower pile leaders continuously increasing. In the offshore cable section, European offshore cable leaders are saturated with orders, and domestic leading companies are accelerating their overseas orders.

Wind power equipment-related companies:

Goldwind Science & Technology (02208): In the 2023 global wind power complete equipment ranking, Chinese wind power enterprises were far ahead, with four of the top five seats. Among them, Goldwind Science & Technology ranked first, with last year's new installed capacity accounting for 13.9% of the global market share. In the first quarter of this year, Goldwind Science & Technology's net income growth rate once dropped significantly, with a net income of only 0.333 billion yuan. The net income attributable to the parent company's shareholders in the semi-annual report was 1.387 billion yuan, a year-on-year increase of 10.83%. This means that the company made a significant effort in the second quarter. As of June 30, 2024, Goldwind Science & Technology's total order volume was 38.4GW, of which external orders totaled 35.6GW, a year-on-year increase of 26.40%. Among these, the vast majority of the company's outstanding orders are for specifications of over 6MW, with corresponding orders of 23.17GW, accounting for 65%.

China High-speed Transmission (00658) is a conglomerate specializing in the research, development, and manufacturing of high-speed, heavy-duty, and precision gear transmission devices. Its business covers the fields of wind turbine gearboxes, rail vehicle gearboxes, industrial gearboxes, robot reducers, and new energy vehicle gearboxes. In 2023, the company's sales revenue from wind turbine gear transmission equipment business increased by 12.2% to 14.89 billion yuan compared to the previous year. From the customer perspective, the company has significant advantages in customer resources in 2023. Its customers for wind turbine gear transmission equipment products include not only major wind turbine complete set businesses in China, but also internationally renowned wind turbine complete set businesses.