The Zhitong Finance App learned that Guoxin Securities released a research report saying that the wind power equipment sector is currently at the bottom of both the performance cycle and the valuation cycle. Prices in the fan industry continued to rise in 2025. As of September 2026, the average winning bid price had increased by 7-13% compared to two years ago, which is expected to drive the fan's gross margin and net profit margin back to the profit range of 8-15% and 1-4% in 2027. The profit margins of domestic fan and parts companies will improve simultaneously in 2027 as global demand for wind power resonates.
Guoxin Securities's main views are as follows:
How do you view the investment characteristics of the wind power equipment industry?
Historically, the performance of the wind power industry has been very volatile, and this volatility is mainly caused by drastic changes in gross margin. In 2020-2026, as China's wind power industry made great strides in terms of installed capacity, the cumulative increase was more than 200%, reaching a record high of 130 GW in 2025, with a year-on-year increase of 49%. It has achieved remarkable results, and has become one of the important pillars of renewable energy.
However, due to the deflationary effect of fan prices, the output value of the industry did not change much. It remained in the range of 200 billion yuan to 300 billion yuan, but profit margins declined sharply due to internal developments in the industry. Since 2021, the leading price index for wind power equipment, the average price of fans, has declined rapidly, falling from 3,800 yuan/kW to a minimum of 1,100 yuan/kW. As a result, the gross margin range of the fan industry fell to 310% from the 15-25% range in 2022. As a result, the PB of the entire sector fell to the edge of breaking, and the market sales rate of fan companies was generally around 0.5 times. In summary, the wind power equipment sector is currently at the bottom of both the performance cycle and the valuation cycle.
The cycle reversal is now, and industry profit margins generally show an upward trend in 2027
The bank believes that the fan bidding market in the first half of 2024 is the deepest stage in the industry. The large number of low price orders formed at that time became the main source of suppression of the domestic fan business of fan companies from the second half of 2024 to the first half of 2026. Such low price orders will soon be completely digested in the second half of 2026. Since 2025, as the National Development and Reform Commission and industry associations jointly promote anti-internal control efforts, the fan industry price has continued to rise. As of September 2026, the average winning bid price has increased by 7-13% compared to two years ago, which is expected to drive the fan's gross margin and net profit margin back to the profit range of 8-15% and 1-4% in 2027.
The development of the two seas has further improved the quality of operations, and the industry has entered the fast track of healthy development
In addition to recovering profits in the domestic wind market, the development of the international wind power market has also brought new growth space to fan companies. In 2025, a total of 7 fan companies in China exported fans to 28 countries, an increase of 48% over the previous year. The overseas wind power market is expected to grow from 40-50 GW to more than 80 GW in 2025-2030, while the overseas market share of domestic fans is also steadily increasing. Due to differences in solution configurations, overseas fan prices are generally 50-150% higher than domestic ones. In addition, the international after-sales service market is an industry that is just in demand, so fan companies can generally achieve a net profit margin of more than 10% higher than the domestic market. Opening up the international market is a necessary path for the fan industry to grow, and now this path has been further broadened.
Risk warning: Domestic wind power investment demand falls short of expectations, geopolitical and trade frictions, sharp rise in raw material prices, and intensified market competition.