Goldwind Shares Climb Over 3% on Stronger-Than-Expected Q1 Results, Citigroup Raises Profit Forecasts

Stock News10:37

Goldwind (02208) rose more than 3% in Hong Kong trading. At the time of writing, the stock was up 2.75% to HK$16.45, with a turnover of HK$95.12 million. The movement follows the company's recent disclosure of its first-quarter 2026 financial results. Bank of America Securities noted that the company's net profit for the first quarter increased by 60% year-on-year to RMB 907 million, surpassing expectations, driven primarily by higher wind turbine shipments and the resumption of wind farm sales. Overall gross margin declined by 5 percentage points compared to the same period last year, mainly due to weaker performance in wind farm operations and a lower proportion of overseas shipments. Citigroup pointed out that it has raised its net profit forecasts for Goldwind for 2026 and 2028 by 8% to 9%, largely due to increased investment income from wind farm divestments. The company maintained its full-year 2026 target for wind turbine sales gross margin at 9% to 10%. Management indicated that unit production costs have risen, particularly for components related to copper and petrochemical products. Blade costs account for approximately 30% of production costs, while bearing costs represent 5% to 10%, although unit costs for Chinese-made bearings have remained relatively stable.

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