UBS Group released a research report, raising the target price of Goldwind Science & Technology (02208.HK) from 4.6 yuan to 6 yuan and reiterating a "buy" rating. The bank explained that the upward revision of Goldwind Science & Technology's target price mainly reflects its export acceleration exceeding expectations, with greater room for volume growth. The profit margin is expected to expand due to the promotion of exports and offshore turbines, but it is partially offset. Offshore wind power in China has been postponed to 2024.

UBS Group expects that the acceleration of Goldwind Science & Technology's exports will speed up, and the rate of market outside China will reach 5% in 2025. With the continued growth of high bidding prices in overseas markets, Goldwind Science & Technology will benefit from the push for the average selling price of overseas wind power to rise. It is expected that the profit margin of export turbines for the fiscal years 2024 to 2026 will increase by 12%, 13%, and 14% respectively. The gross margin of onshore turbines will increase by 3%, 6%, and 8% respectively.

UBS Group also expects that Goldwind Science & Technology's turbine business will turn losses into profit in the fiscal year 2025 after recording losses from 2022 to 2024. It is expected that the turbine business will achieve breakeven, and the gross margin is expected to be between 7% and 8%.

In addition, UBS Group raised the profit forecast for Goldwind Science & Technology for the fiscal years 2024 to 2026 by 1%, 7%, and 14% respectively, implying a compound annual growth rate of 36% for the fiscal years 2023 to 2028.

~