Round LED Explosion-proof Light Hanghong Lighting (Linyi) Co., Ltd. , https://www.sdhhzm.com
When did the wind power industry slowly recover the industry inflection point?
The wind power industry has been under scrutiny from both domestic and international institutional investors, who are closely watching whether the sector has finally reached a turning point after two years of stagnation. Following a challenging period, the industry began to show signs of recovery in 2013, with Goldwind, one of China’s leading wind turbine manufacturers, reporting a massive surge in profits. The company projected a net profit increase of 350% to 400% for the first three quarters of 2013, drawing significant attention from institutional investors.
Throughout September, several major domestic and international institutions conducted extensive research on Goldwind Technologies. These included Huaxia Fund, Castrol, Bosch, UBS, NordeaBank, Invesco Investment Management, and others. Institutional investors such as mutual funds, Qualified Foreign Institutional Investors (QFII), and private equity firms were particularly active. Notable visits occurred on multiple dates: Chongyang Fund’s team led by Chen Zimu and Li Yi visited on September 4; Huaxia Fund’s Chen Yongqiang conducted research on September 17; Bo Shi Fund’s Chen Pengyang participated in a phone interview on September 24; Harvest Fund’s Yao Zhipeng, Yu Linlin, and Wu Yunfeng carried out a group visit on September 25; and Bank of China Fund’s Tianyuan conducted an on-site inspection on September 26.
Investors were primarily focused on whether the wind power sector had truly entered a recovery phase. According to Goldwind’s management, while the industry was showing gradual improvement, it had not yet reached a full turnaround. In 2010, China saw its highest level of new wind power installations, but this dropped in 2011. Goldwind expects annual new installations to remain between 15GW and 16GW through 2015—still below the 2011 peak.
Additionally, the number of wind power equipment manufacturers has decreased from over 80 to more than 60 in the past two years, with some companies exiting the market. However, competition remains intense, and regulatory measures have been introduced to raise industry standards, signaling that consolidation is likely to continue.
In 2013, the Chinese government increased subsidies for renewable energy, with wind power receiving the largest share. A March 2013 notice from the Ministry of Finance allocated RMB 14.8 billion in advance to provinces for renewable energy projects, including RMB 9.3 billion specifically for wind power. This financial support played a key role in the industry's recovery.
Beyond the domestic market, institutional investors are also keenly interested in Goldwind’s overseas expansion. While the company’s primary focus remains on the domestic market, its international operations are still in the early stages. Goldwind has been gradually building its reputation abroad, especially in regions like the Americas and Australia, where economic and infrastructure conditions are favorable for wind power development.
From a stock market perspective, Goldwind Technology has shown strong performance in both the Hong Kong and A-share markets. On September 23, the A-share listed company hit the daily limit, indicating strong investor interest and fund inflows. Overall, the wind power sector is on a positive trajectory, driven by policy support, improved performance, and growing confidence from institutional investors.