Key Takeaways:
Bank of America Securities raised its price target on Goldwind (02208.HK) after the wind turbine maker’s first-quarter net profit jumped 60 percent year-over-year to RMB907 million, beating expectations. The bank reiterated a Buy rating on the company's H-shares.
The strong earnings were driven by higher wind turbine shipments and the resumption of wind farm sales, BofA said in a research report. The performance was partially offset by a five percentage point decline in overall gross margin, which was dragged down by wind farm operations and a lower contribution from overseas shipments.
BofA lifted its earnings forecasts for Goldwind for 2026 through 2028 by an average of three percent to reflect higher shipment projections. The bank now expects Goldwind to achieve 35 percent full-year growth in 2026.
The bullish view on the company's Hong Kong-listed shares contrasts with the bank's caution on its mainland-listed A-shares (002202.SZ). BofA cut its price target for the A-shares from RMB31.6 to RMB26 and maintained its Underperform rating.
The positive revision for Goldwind's H-shares suggests analyst confidence in the company's international growth and overseas order book. However, the sustained Underperform rating on its A-shares may point to lingering concerns about domestic market competition and margins. Investors will watch second-quarter results for signs of margin stabilization.
This article is for informational purposes only and does not constitute investment advice.
