• Reiterate Buy Entry – 16.8 Target – 18.8 Stop Loss – 15.8
  • Xinjiang Goldwind Science & Tech Co Ltd is a China-based company, principally engaged in the manufacture and distribution of wind turbine generator sets and spare parts. The company is also engaged in the provision of wind power services, as well as the investment and development of wind farms. The company distributes its products within domestic and overseas markets.
  • 3Q21 financial results updates. 3Q21 Operating income dropped by 9.4% YoY to RMB15.6bn. Net profits attributable to shareholders of the company jumped by 45.6% YoY to RMB1.2bn. 
  • 3Q21 operating results updates. In 9M21, the external sales volume of the company were 6,347.5MW. As at 3Q21, the group’s external contract orders were 13,344.5MW. The group had 1,746.4MW unsigned contract orders.The group’s total external order was 15,090.7MW, including 1,874.8MW overseas orders. In addition, the Group’s internal order totaled 1,336.5MW.
  • Utilities sector is a relative safe haven during market turmoil. New Covid variant Omicron shocked the global market during the Thanksgiving holiday. At the moment, lot of uncertainties regarding the impacts could slow down the global economic recovery. Meanwhile, inflation concerns will come back once the yields resume uptrend. One of the certain themes for global market is carbon neutrality. Xinjiang Goldwind is one of the few wind power-themed stocks that have solid fundamentals and upbeat outlook for the next few years. 
  • Updated market consensus of the EPS growths in FY21/22/23 are 43.0%/5.0%/12.3% YoY respectively, which translates to 14.7x/14.0x/12.5x forward PE. Current PER is 17.5x. Bloomberg consensus average 12-month target price is HK$19.99.