According to Capital Securities, since 2025, the steady increase in domestic wind power installed capacity has led to a surge in demand for wind turbine blades. Given that the largest company producing matrix materials, Dao Sheng Tian He, has yet to go public and that companies in the core materials sector hold a low market share, there is a strong recommendation to focus on the carbon fiber value chain as an enhancing material. From January to August 2025, domestic carbon fiber consumption saw a significant year-on-year increase of 47.21%. Currently, signs of bottoming prices for carbon fiber are prominent, with many companies enduring losses for over a year, suggesting that both prices and industry vitality are likely to rebound as volume rises. Key insights from Capital Securities are as follows: The wind power sector has significant potential; by 2024, global cumulative wind power installed capacity reached 1134.76 GW, an 11.28% year-on-year increase, with new installations setting a historical high at 117 GW. According to the International Energy Agency (IEA), the wind power industry is projected to have a compound annual growth rate of about 12% from 2023 to 2030. By the end of 2024, China’s cumulative wind power installation is expected to reach 520.68 GW, marking a 17.95% increase year on year, with an additional installed capacity of 78.79 GW in 2024, a record high. The growth rate is expected to remain high through 2025, with China's cumulative installed capacity reaching 579.02 GW by August 2025, a 22.12% year-on-year increase, and the projected new installations for that year expected to hit between 105 and 115 GW, entering a new era of annual new installations surpassing 100 GW. In the wind power supply chain, wind turbine blades represent a core component, where the highest cost proportion is attributed to the tower, accounting for around 29%, followed by blades at approximately 22%, marking them as critical parts of the wind power setup. With the advent of grid parity in wind power, the trend toward larger turbines has emerged as a key method for reducing costs across the supply chain, resulting in the production of larger blades. The dominant matrix material is epoxy resin, which constitutes the largest share of costs at roughly 33%, with the most widely used type being epoxy resin. Specialized wind power epoxy resin is primarily produced in China, Europe, and North America, with major domestic producers including Dao Sheng Tian He, Hui Bai New Material, Shang Wei New Material, and Polymer Technology. In terms of reinforcement materials, fiberglass remains mainstream, while carbon fiber has broad application prospects. Reinforcement materials ensure the structural rigidity and strength of blades, accounting for approximately 21% of costs. Fiberglass offers cost advantages over carbon fiber, with China National Building Material Group as a leading player. As blade sizes increase, the advantages of carbon fiber blades become more prominent, with Japan's Toray being a global leader in the carbon fiber industry, while domestic firms include Jilin Huafon and Zhongfu Shenying, alongside leading carbon fiber precursor producers like Jilin Carbon Valley. Core materials are primarily composed of balsa wood and PVC foam, with PET foam showing potential for substitution. Core materials account for approximately 25% of costs, with balsa wood mainly imported from Ecuador. The PVC foam market is currently breaking technological barriers and moving towards domestic substitution, with related companies including Longhua Technology, Weisi New Materials, and Tiensheng New Materials. The PET foam industry is relatively nascent in China, with fewer R&D and manufacturing companies. Risk factors include wind power installations not meeting expectations, significant fluctuations in chemical prices, and policies falling short of expectations.
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