Wind power industry: increasing capacity and increasing competition

Events: Recently, Hunan Electric shares, Goldwind Technology announced in the sixth issue of wind power concession bidding projects in the bid, from the results and expectations, we think there are several points to pay attention to. Comments: Wind power Market capacity is increasing: The sixth phase wind power bidding project for the Inner Mongolia and Hebei region Shine kilowatt-grade wind turbine equipment requirements for the wind turbines, the total size of 5.25 million-kilowatt, compared with the previous installments, the scale of the bid further expansion, we believe that the domestic wind power construction is still in speed, The scale of tenders for the future is still expected to increase. In accordance with the requirements of "building a large base and integrating into the large power grid", the National Development and Reform Commission has planned several Chivan Chiva and Parina kilowatt-grade wind power base development goals, to build "wind power Three Gorges."　　At present, Gansu Jiuquan region Chivan Chiva-grade wind power base construction work is the fastest, has completed the first phase of 20 development projects 3.8 Million-kilowatt of the total installed franchise bidding, Hebei, Inner Mongolia, Jiangsu coastal, Xinjiang and other Chivan Chiva-grade wind power base planning work has been launched. Competition is increasing: compared with the fifth tender, the bid has increased. In the fifth period, although the Chongqing Sea installed also won the bid, but its share is very small, mainly by Sinovel, Goldwind, the three big monopoly of the East steam. In this tender, although the three giants still occupy the share of the main part, but Hunan Electric shares, Zhejiang Windey, Guangdong Mingyang and other enterprises have joined in and accounted for some of the market share.　　We believe that in the future with the increase in market capacity, it is expected that there will still be new manufacturers to join in, competition will be further intensified, but with independent innovation ability, product reliability and maintenance services strong, industrial chain control of enterprises will still occupy the dominant position of the market. Investment Rating: Although the domestic wind power industry in the growing policy support will continue to maintain a faster growth, but we believe that the current industry overall valuation is high, the risk is increasing, we cut the industry's investment rating as "neutral."