Xinjiang Goldwind Science & Technology Co Class H ((HK:2208)) has held its Q1 earnings call. Read on for the main highlights of the call.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
- Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
The recent earnings call for Xinjiang Goldwind Science & Technology Co. Class H painted a picture of robust growth tempered by some operational challenges. The company reported significant increases in wind turbine sales and order backlogs, alongside improved revenue and cash flow. However, these positive developments were somewhat offset by declining profit margins, increased trade receivables days, and a slight dip in new grid connections in China.
Significant Growth in Wind Turbine Sales
In the first quarter of 2025, Goldwind saw a remarkable 80.16% growth in total external sales, reaching 2,587.65 megawatts. Notably, the WTG 6 megawatts made up a substantial 70.47% of these sales, underscoring the strong demand for this product line.
Record High Wind Turbine Order Backlog
The company’s order backlog soared to a new high of 51.09 gigawatts. This includes 48.6 gigawatts from external orders and a notable 26.1% year-over-year growth in the overseas market, highlighting Goldwind’s expanding international footprint.
Revenue Increase
Goldwind reported a significant revenue increase in Q1 2025, reaching RMB9.47 billion. This represents a year-over-year rise of RMB2.49 billion, primarily driven by the wind turbine generator segment.
Net Profit Growth
The net profit attributable to the company’s owners grew by 17%, amounting to RMB1.568 billion in the first quarter of 2025. This growth was fueled by an increase in gross profit.
Improvement in Cash Flow
The company’s cash to total asset ratio improved to 8.75%, thanks to strategic prepayments and operational funds preparations, reflecting better liquidity management.
Decline in Comprehensive Profit Margin
Despite the positive revenue and profit figures, Goldwind experienced a decline in its comprehensive profit margin, which fell by 3.11% to 21.78% in Q1 2025.
Increase in Trade Receivables Days
Trade receivables days increased to 174 days, indicating a challenge in meeting performance targets and potentially affecting cash flow.
Slight Decline in China’s New Grid Connection
The company reported a 5.7% decline in new grid connections in China during the first quarter, which could impact future domestic sales.
Forward-Looking Guidance
Goldwind’s forward-looking guidance emphasized a 17% year-over-year increase in net profit, driven by gross profit growth. The company also highlighted its record high wind turbine order backlog and improved financial health, with a decreased asset liability ratio and enhanced cash to total asset ratio, signaling strong future profitability and liquidity.
In summary, Xinjiang Goldwind Science & Technology Co. Class H’s earnings call showcased a period of substantial growth in sales and order backlogs, alongside improved financial metrics. However, challenges such as declining profit margins and increased trade receivables days present areas for improvement. The company’s forward-looking guidance suggests continued momentum in profitability and financial health, positioning it well for future growth.