Intrinsic Value Goldwind Science&Technology Co., Ltd. (002202.SZ)

• Previous Close: $26.11
• Intrinsic Value: $78.07
• Upside potential: +199%

Stock Valuation Context

Business Model And Market Position

Xinjiang Goldwind Science & Technology Co., Ltd. operates as a comprehensive wind power solutions provider with a vertically integrated business model spanning four core segments. The company's primary revenue driver is its Wind Turbine Generator (WTG) Manufacturing segment, which involves the research, development, production, and sale of wind turbines and spare parts. Goldwind complements this manufacturing arm with Wind Power Services offering construction, post-warranty maintenance, and asset management, while its Wind Farm Development segment engages in operating wind farms and selling developed projects. The company also maintains a smaller Others segment involved in water treatment plant operations and solar power development. As a key player in China's renewable energy sector, Goldwind leverages its integrated approach to capture value across the wind power value chain, from equipment manufacturing to project operation. The company's strategic positioning allows it to benefit from China's push toward carbon neutrality and global renewable energy adoption trends. Goldwind competes in the highly competitive wind turbine manufacturing space, where technological innovation, cost efficiency, and service capabilities are critical differentiators. Its international presence provides geographic diversification beyond the domestic Chinese market, though it remains heavily exposed to government policies and subsidies supporting renewable energy infrastructure development.

Revenue Profitability And Efficiency

Goldwind generated revenue of CNY 56.7 billion for FY 2024, demonstrating its scale in the wind power equipment and services market. The company achieved net income of CNY 1.86 billion, translating to a net profit margin of approximately 3.3%, reflecting the competitive nature of the wind turbine manufacturing industry. Operating cash flow stood at CNY 2.32 billion, while capital expenditures were substantial at CNY 7.67 billion, indicating significant ongoing investments in production capacity and project development.

Earnings Power And Capital Efficiency

The company reported diluted earnings per share of CNY 0.44 for the fiscal year, representing its earnings generation capacity relative to its shareholder base. Goldwind's capital allocation strategy appears focused on reinvestment, with substantial capital expenditures exceeding operating cash flow. This suggests the company is prioritizing growth investments over immediate returns, consistent with the capital-intensive nature of renewable energy infrastructure development and manufacturing scale requirements.

Balance Sheet And Financial Health

Goldwind maintained a cash position of CNY 11.62 billion against total debt of CNY 35.30 billion, indicating a leveraged capital structure common in capital-intensive industries. The debt level supports the company's wind farm development activities and manufacturing capacity expansion. The balance sheet structure reflects the financing needs of project development while maintaining operational liquidity through substantial cash reserves.

Growth Trends And Dividend Policy

The company maintained a dividend distribution of CNY 0.14 per share, representing a payout ratio of approximately 32% based on diluted EPS. This balanced approach returns capital to shareholders while retaining earnings for reinvestment in growth initiatives. Goldwind's business model requires continuous investment in technological innovation and project development to maintain competitive positioning in the evolving renewable energy landscape.

Valuation And Market Expectations

With a market capitalization of approximately CNY 52.27 billion, Goldwind trades at a price-to-earnings ratio of around 28 times trailing earnings, reflecting market expectations for future growth in renewable energy adoption. The company's beta of 0.56 suggests lower volatility compared to the broader market, potentially indicating perceived stability within the renewable energy infrastructure sector despite its growth-oriented characteristics.

Strategic Advantages And Outlook

Goldwind's integrated business model provides competitive advantages through vertical integration across the wind power value chain. The company benefits from China's renewable energy policy support and global decarbonization trends. Key challenges include intense competition in turbine manufacturing, technological evolution, and dependence on government subsidies. Goldwind's outlook is tied to global wind power capacity expansion, with opportunities in international markets balanced against domestic competition and policy uncertainties.

Sources

Company Annual ReportFinancial statementsMarket data