| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 23.80 | 66 |
| Intrinsic value (DCF) | 4196.96 | 29086 |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
Shanghai Electric Wind Power Group Co., Ltd. stands as a pivotal player in China's renewable energy transition, specializing in the design, manufacturing, and maintenance of wind turbines, as well as the operation of wind farms. Founded in 2006 and headquartered in Shanghai, the company operates as a subsidiary of the state-owned industrial giant Shanghai Electric Group Company Limited, providing a strong industrial backbone. With a cumulative installed capacity of approximately 11 gigawatts (GW), it contributes significantly to China's ambitious carbon neutrality goals. The company's integrated business model spans the entire wind power value chain, from equipment supply to long-term operational services, positioning it within the critical Renewable Utilities sector. As China continues to dominate global wind power installations, Shanghai Electric Wind Power leverages its domestic market presence and technological development to capitalize on the nation's push for energy security and sustainability. This strategic focus makes it a key entity for investors tracking the growth of clean energy infrastructure and the broader green industrial policy in the world's largest energy market.
The investment case for Shanghai Electric Wind Power is a tale of strategic positioning versus immediate financial performance. The company's deep integration with its state-owned parent, Shanghai Electric Group, and its role in China's national energy strategy provide a degree of stability and growth potential aligned with government mandates. However, the financials for the period ending December 31, 2024, reveal significant challenges, with a net income of -CNY 784.8 million and negative earnings per share (EPS) of -CNY 0.59. While the company maintains a substantial cash position of CNY 3.0 billion, its operating cash flow is minimal (CNY 43.3 million), and it is investing heavily, as evidenced by capital expenditures of -CNY 543.6 million. The lack of a dividend further positions this as a pure growth/transition story. The low beta of 0.351 suggests lower volatility relative to the market, which may appeal to investors seeking exposure to China's renewable sector with mitigated systemic risk, but the core profitability issue remains the primary concern.
Shanghai Electric Wind Power's competitive positioning is defined by its affiliation with a major state-owned enterprise (SOE), which provides advantages in securing large-scale projects and financing within China's regulated energy market. This SOE backing is a significant competitive moat, particularly for utility-scale projects that align with national policy. However, the company operates in an intensely competitive domestic wind turbine manufacturing landscape. Its cumulative installed capacity of ~11GW places it as a notable player, but it trails the industry leaders in market share. The company's integrated model—combining manufacturing with operations and maintenance (O&M) services—is a key differentiator, creating long-term revenue streams and customer stickiness beyond initial equipment sales. A major challenge is achieving profitability in a market characterized by price competition and technological rapid iteration. While its R&D efforts are supported by its parent company, it faces constant pressure from rivals with larger scale and more advanced turbine platforms. Its competitive advantage is therefore less about technological leadership and more about its entrenched position in the domestic supply chain and its ability to leverage state-backed projects, making its fortunes heavily tied to the pace and nature of Chinese government investment in renewable energy.