Citigroup: Raises Goldwind Science & Technology's (02208) target price to 20 Hong Kong dollars and is optimistic about the uptrend cycle.

Citigroup released a research report stating that it has raised the net profit forecast for Goldwind Science & Technology (02208) in 2026 and 2028 by 8% to 9%, mainly due to the increase in investment income from the sale of wind farms. The target price has been raised from HK$18 to HK$20, corresponding to a forecasted 18.6 times price-earnings ratio, 1.6 times price-to-book ratio, and a dividend yield of 1.8%; reaffirming a "buy" rating. Citigroup stated that Goldwind Science & Technology's net profit for the first quarter of this year increased by 59.6% year-on-year to RMB 907 million. The company maintains its target of 9% to 10% gross margin for wind turbine sales for the full year of 2026. Management revealed that unit production costs have increased, especially involving copper and petrochemical products, with blade costs accounting for about 30% of production costs and bearing costs accounting for 5% to 10%, but the unit cost of bearings in China remains relatively stable. In addition, the first phase of the green hydrogen/green methanol project is expected to start trial operation in the third quarter of 2026, with production expected to reach 500,000 tons in 2027.