Guosen: Offshore wind power accelerating recovery, leading power companies' value returning

Guosen released a research report stating that investors should pay attention to overall opportunities in the offshore wind power sector, with a particular bullish view on core segments such as submarine cables and pipe piles. Lithium battery leaders have experienced significant oversold conditions, with valuations at historical lows, and operating performance and cash flow are expected to achieve stable growth; attention should be paid to the absolute return space from significant value regression. AIDC power supply and distribution technology is iterating toward high-voltage DC, and more leading domestic power electronics companies are expected to enter the global AIDC supply chain, ushering in an industry dividend period of sustained performance growth. Guosen's main views are as follows: Global offshore wind power is about to usher in sustained prosperity lasting several years Recently, domestic provincial-managed offshore wind power projects have successively started construction, with major projects in Jiangsu, Zhejiang, and Guangdong all launching equipment bidding. In overseas markets such as Europe, Southeast Asia, and the Middle East, key orders for China's supply chain are progressing smoothly. On the onshore wind side, new energy mechanism electricity prices are stabilizing and rebounding, and wind power bidding is showing signs of recovery. From January to August, domestic onshore wind bidding reached 65.5GW, a year-on-year increase of 36%. Since the second half of 2026, wind turbine exports have maintained relatively high prosperity, providing long-term profit growth space for the industry. Focus on leading enterprises in turbines, components, and offshore wind, including Ningbo Orient Wires & Cables, Goldwind Science & Technology, Delijia Transmission Technology, Dajin Heavy Industry, Sany Renewable Energy, etc. Lithium battery fundamentals benefit from export demand, and oversold lithium battery leaders are expected to see value regression Lithium battery companies' production scheduling continues an upward trend. Energy storage demand continues to improve, rapid growth in electric vehicle exports combined with continuously rising battery capacity per vehicle in domestic sales, and lithium battery demand maintains high-speed growth. In September, domestic new energy vehicle exports maintained relatively high growth. In October, the combined production scheduling of 6 companies in the lithium battery segment totaled 211.3GWh, a year-on-year increase of 66% and a month-on-month increase of 6%. Under the industry's high prosperity, separators and copper foil remain in tight balance. Recommended focus on leading enterprises in directions such as batteries, separators, copper foil, solid-state batteries, and sodium batteries, including Contemporary Amperex Technology, Guangzhou Great Power Energy & Technology, Eve Energy Co.,Ltd., Jiangsu Azure Corporation, Shenzhen Highpower Technology, CALB, Shenzhen Capchem Technology, Shenzhen Senior Technology Material, Jiangsu Cnano Technology Co.,Ltd., etc. Global energy storage demand is growing steadily, and system and PCS overseas expansion is accelerating Domestic energy storage market-oriented demand is driving explosive order growth; U.S. data center development is driving increased procurement demand for utility-scale storage; rising European natural gas prices and electricity marketization are both driving energy storage demand; governments in emerging markets are frequently issuing energy storage policies. It is expected that global energy storage installed capacity demand will reach 455GWh in 2026, a year-on-year increase of 40%. It is recommended to focus on Sungrow Power Supply, Ningbo Deye Technology Corporation, Beijing HyperStrong Technology, Shenzhen Sinexcel Electric. Grid investment certainty is prominent, continue to focus on AIDC and overseas expansion leaders As of the end of September, ultra-high-voltage bidding reached nearly 28 billion yuan, an increase of about 27% compared with the full-year scale in 2025. Entering the fourth quarter, domestic grid investment is expected to accelerate. In the AIDC direction, related companies' orders and performance in the second half of the year are gradually showing elasticity; overseas demand for medium- and high-voltage equipment is strong, and export orders are concentratedly confirmed in the third quarter, contributing to quarter-on-quarter profit elasticity for the sector. Focus on leading enterprises in domestic demand, overseas expansion, and AIDC, including Henan Pinggao Electric, Guangdong Mingyang Electric, Hainan Jinpan Smart Technology, GuangZhou BaiYun Electric Equipment, Shenzhen Megmeet Electrical, Hangzhou Zhonhen Electric. Risk warnings: trade friction risk; rising commodity raw material prices; domestic new energy vehicle sales falling short of expectations; domestic energy storage market growth falling short of expectations; exchange rate risk