UOB Kay Hian
Date of Report: Tuesday, 26 August 2025
Goldwind Science & Technology (2208 HK): Margin Recovery and Record Backlog Signal Bright Outlook for China’s Wind Power Leader
Executive Summary
Goldwind Science & Technology, China’s largest wind turbine generator (WTG) manufacturer, has delivered robust 1H25 results with strong earnings growth, record backlog, stabilizing pricing, and a clear path to margin recovery. This report, maintained as a BUY by UOB Kay Hian, analyzes Goldwind’s operational performance, financial metrics, and strategic outlook—highlighting why the company remains a top pick for investors in the renewable energy sector.
Company Snapshot
Company: Goldwind Science & Technology (2208 HK)
Sector: Industrials (Wind Power, WTG Manufacturing)
Market Cap: HK$51.1 billion (US$6.5 billion)
Shares Outstanding: 773.6 million
Share Price (as of report): HK$9.52
Target Price: HK$10.80 (13.4% Upside)
Major Shareholders: Xinjiang Wind Power Co., Hexie Health Insurance, China Three Gorges Renewables
1H25 Financial Performance: Strong Revenue Growth and Solid Margins
Goldwind reported 1H25 earnings of RMB 1,487.5 million, up 7.3% year-on-year, in line with expectations. Revenue surged by 41.3% to RMB 28.54 billion, driven by record WTG deliveries. The WTG segment gross margin rose to 8.0% (from 3.8%), though the overall group gross margin slipped to 15.3% due to a lower wind farm contribution.

Segment Analysis: WTG Drives Growth, Wind Farm Revenues Pressured
Wind Turbine Generator (WTG) Segment
WTG deliveries hit 10.6GW (+107% YoY), a record pace, with large-scale models (≥6MW) making up 81.5% of shipments.
WTG segment revenue soared 71.2% to RMB 21.85 billion.
Gross margin for WTG improved to 8.0% (from 3.8%).
The acceleration was fueled mainly by a 90.2% YoY surge in 2024 domestic tenders.
Wind Power Services
Revenue rose 22.0% to RMB 2.90 billion.
This segment continues to grow steadily, providing a stable revenue stream.
Wind Farm Development
Revenue declined 27.9% to RMB 3.17 billion, reflecting lower wind farm disposals and reduced power generation revenue due to lower tariffs.
Attributable wind farm capacity reached 8,652MW (+6.2% YoY), with power generation up 14% to 8.495b kWh.
However, generation revenue dropped 8.6% due to lower average tariffs as market-based sales increased.
Business Mix and Margin Dynamics
The WTG business now represents 76.6% of group revenue (up from 63.2% in 1H24), increasing the group’s exposure to manufacturing margins and reducing the contribution from high-margin wind farm operations.
Wind farm segment margin remains high at 57.5%, but its lower revenue share dilutes overall group profitability.
Despite margin improvements in WTG, the group net margin declined to 5.2% (from 6.9%).
Outlook: Record Backlog, Guidance Reaffirmed, and Margin Recovery in Sight
2025 Guidance
Management maintains its 2025 WTG sales target of ~30GW:
22GW domestic onshore
2GW domestic offshore
3.5GW overseas
2GW internal sales
Margin Guidance
Turbine gross margin is guided at ~7% for 2025 (2024: 5.1%), with a medium-term target of ~10% by 2026.
Management noted that domestic turbine sales require at least a 7% gross margin to break even and 10% to cover overheads.
Order Backlog
Total backlog reached a record 54.8GW (+7.3% QoQ, +15.4% YTD), with overseas backlog at 7.4GW.
Overseas growth remains robust, especially in Asia, South America, and emerging markets.
1H25 open tender volume was 71.9GW (+8.8% YoY), with average bidding prices stabilizing above RMB 1,500/kW.
Wind Farm Operations: Tariff Pressure, Disposal Strategy
Attributable wind farm capacity increased by 709MW to 8,652MW.
Power generation rose 14% YoY, but revenues fell 8.6% due to lower tariffs, reflecting the transition to market-based pricing (accelerated by China’s Document No. 136).
Utilization hours slipped to 1,255 (down 13 hours YoY).
Wind farm disposal gains rose 35.9% YoY to RMB 1,430 million, despite lower volumes (100MW vs. 225MW in 1H24).
Management reaffirmed a 1,500MW disposal target for 2025, with most transactions expected in 2H25.
Financial Forecasts and Valuation
Goldwind’s financial outlook has been fine-tuned with a 1-3% increase in earnings forecasts for 2025-2027. The company remains on a solid growth trajectory, with improving operational leverage and disciplined cost control.

Key Metrics and Valuation Multiples
ROE: 4.9% (2024), rising to 10.0% (2027F)
Net Margin: 3.3% (2024), climbing to 6.3% (2027F)
Net Debt/Equity: Set to increase from 80.5% (2024) to 98.8% (2027)
Dividend Yield: Expected to rise from 1.6% (2024) to 3.7% (2027)
Valuation: Maintain BUY with a DCF-based target price of HK$10.80 (WACC 5.4%, terminal growth 3%)
External Sales Volume Breakdown

Strategic Positioning and Investment Case
Goldwind is strategically positioned as a global wind energy leader, underpinned by:
Leadership in large-scale turbine manufacturing and robust R&D.
Improving turbine margins and accelerating order deliveries.
Stabilized domestic tender pricing and a healthy order pipeline.
Disciplined cost control and focus on high-capacity models.
Expanding global reach, with growing overseas backlog and market penetration.
Share Price Catalysts
Stronger-than-expected WTG demand.
Rebound in WTG prices.
Execution of wind farm disposal strategy.
Margin recovery and realization of medium-term profitability targets.
Conclusion
With a record order backlog, clear guidance on margin recovery, and accelerating global expansion, Goldwind Science & Technology remains a compelling investment in the renewable energy sector. The combination of scale, innovation, and financial discipline positions the company for sustained earnings growth and long-term market leadership.
Broker: UOB Kay Hian. Report Date: 26 August 2025.