Table of contents
Wind industry snapshot; consensus comparison; key assumptions 2
Valuation: China High Speed offers better risk/reward vs. peers 6
Resurgence in global wind power into the next decade 12
China is committed to tapping its massive wind resources 16
Power grid bottleneck may only be a temporary setback 20
Improving wind tariff regime fosters more orderly growth in China 21
Intense competition and irrational growth depress profit margins 22
CHST (0658.HK; Buy): Top pick within the power equipment stocks 25
Goldwind (002202.SZ; Neutral): Product mix shift depresses margin 28
Appendix I: CHST’s convertible bonds and equity swaps summary 31
Appendix II: Equipment makers in global wind power value chain 32
Appendix III: Cost analysis for wind turbines 33
Disclosures 34
The prices in the body of this report are based on the market close of October 20, 2009.
The author would like to thank June Zhu, Sun Ran, and the Goldman Sachs European Alternative Energy Research Team for their valuable
contributions to this publication. The European team covers Gamesa, Gurit, Nordex, Repower, and Vestas.