CITIC Securities: Wind Power Industry's Expected Bottom Solidified, Performance Bottom Likely to Emerge with 2027 Half-Year Reports
CITIC Securities research reports indicate that the domestic wind power industry has solidified its expected bottom, with the performance bottom anticipated to become clear as 2027 half-year reports are progressively released. Over the past year, domestic wind power developers have shown significant hesitation due to the impact of green electricity market-based trading policies, leading to delays in wind power project bidding and development. However, with continuous accumulation of bidding and operational experience, and an expected increase in project yields driven by substantial rises in mechanism electricity prices and volumes in some provinces by 2027, developers' enthusiasm for new project bidding and construction is projected to improve from the second half of 2026. As warming signals in the sector grow stronger, attention is recommended towards the wind power industry's profitability improvement and valuation repair opportunities arising from increased domestic wind power bidding volumes and accelerated construction. The report suggests focusing on leading companies in wind turbine manufacturing and specific component segments that possess "dual sea" competitive advantages.
The wind power sector's development trajectory is being shaped by policy shifts in green electricity trading and evolving project economics. While past policy uncertainty led to developer caution and project delays, an anticipated improvement in project yields by 2027, driven by provincial mechanisms, suggests a potential inflection point. This shift could incentivize renewed investment in new projects and construction, impacting the entire supply chain. Investors are advised to monitor bidding volumes and construction pace as indicators of industry recovery. The analysis highlights the importance of policy stability and predictable revenue streams in fostering long-term growth and investment in renewable energy infrastructure.
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