New Energy Sector Review: Photovoltaic Stabilization & Wind Power Margin Recovery

Date: November 14, 2025
Analyst: Duohong Zeng (S0600516080001)
Source: Soochow Securities Research Institute

Executive Summary

The New Energy sector demonstrated a clear divergence in performance during the first three quarters of 2025, characterized by a significant turnaround in the photovoltaic (PV) segment and robust, steady growth in the wind power sector. While the broader new energy板块 (covering 111 listed companies) saw a slight revenue contraction of 1% YoY to RMB 1.17 trillion in 9M2025, profitability dynamics shifted markedly in Q3. The sector’s consolidated net profit attributable to shareholders (NPAS) declined 19% YoY to RMB 24.2 billion for the period, but Q3 alone delivered a strong rebound, with NPAS surging 41% YoY and 68% QoQ to RMB 11.8 billion.

Key Structural Shifts:
1. Photovoltaics (PV): The "anti-involution" (supply-side discipline) measures are yielding tangible results. After posting a net loss of RMB 430 million in 9M2025, the PV sector returned to profitability in Q3 with a net profit of RMB 284 million, representing a massive 1,495% YoY increase and 181% QoQ growth. This marks a critical inflection point where upstream prices have stabilized, and inventory impairments have decreased.
2. Wind Power: The sector continues its steady expansion, with 9M2025 revenue up 27% YoY to RMB 300.2 billion and net profit up 20% YoY to RMB 15.5 billion. Crucially, gross margins have bottomed out and are recovering, driven by price increases in turbine bidding since late 2024 and strong overseas demand for towers and cables.
3. Energy Storage & Inverters: This sub-sector remains a high-growth engine. Driven by inventory destocking in Europe, booming demand in Southeast Asia and Australia, and policy-driven economic viability for large-scale storage in China and the US, inverter and storage revenues grew 25% YoY in 9M2025.

We maintain an Overweight stance on the New Energy sector, specifically favoring companies with strong channel advantages, cost leadership in supply-constrained segments, and exposure to high-growth overseas markets.

Key Takeaways

1. Sector-Wide Financial Health: Cash Flow Improvement & Capex Discipline

The overall financial health of the new energy sector is improving, characterized by stronger cash flows and reduced capital expenditure, signaling a shift from aggressive expansion to quality growth and balance sheet repair.

• Revenue & Profit Trends:

  • 9M2025: Total Revenue RMB 1.17 trillion (-1% YoY); Net Profit RMB 24.2 billion (-19% YoY).
  • Q3 2025: Total Revenue RMB 413.8 billion (+2% YoY, -3% QoQ); Net Profit RMB 11.8 billion (+41% YoY, +68% QoQ).
  • Profitability Margins: The sector’s gross margin in Q3 was 15.3% (-0.6 pct YoY, +0.7 pct QoQ). The net profit margin improved significantly to 2.9% in Q3 (+0.8 pct YoY, +1.2 pct QoQ), indicating better cost control and pricing power in key segments.

• Cash Flow & Expenses:

  • Operating Cash Flow (OCF): 9M2025 OCF reached RMB 78.29 billion, a substantial 95% YoY increase. Q3 OCF was RMB 49.7 billion (-5% YoY, +24% QoQ), demonstrating robust cash generation capabilities despite revenue headwinds.
  • Expense Ratio: The period expense ratio for 9M2025 was 10.8% (-0.4 pct YoY), with Q3 at 11.1% (-0.6 pct YoY). This decline reflects improved operational efficiency and scale effects.

• Balance Sheet Indicators:

  • Contract Liabilities: Total sector contract liabilities stood at RMB 253.4 billion in Q3 (+9% YoY), suggesting healthy order backlogs. However, PV-specific contract liabilities fell 16% YoY to RMB 72.2 billion, reflecting cautious downstream procurement.
  • Capital Expenditure (Capex): Industry-wide Capex in 9M2025 dropped 24% YoY to RMB 150.9 billion. PV Capex saw a sharper decline of 46% YoY, indicating a halt in blind capacity expansion.
  • Inventory: Total sector inventory rose 6.7% QoQ to RMB 472.8 billion. PV inventory increased slightly by 1.3% QoQ to RMB 223.8 billion, suggesting that destocking efforts are nearing completion, though levels remain elevated compared to historical norms.

2. Photovoltaics: "Anti-Involution" Drives Upstream Profit Repair

The PV sector has undergone a painful but necessary correction. The implementation of supply-side constraints ("anti-involution") has begun to stabilize prices and restore profitability, particularly in upstream segments.

2.1 Overall Performance

• 9M2025: Revenue RMB 664.0 billion (-12% YoY); Net Loss RMB 430 million (-212% YoY).
• Q3 2025: Revenue RMB 231.5 billion (-8% YoY, -3% QoQ); Net Profit RMB 284 million (+1,495% YoY, +181% QoQ).
• Margin Recovery: The net profit margin turned positive in Q3 at 1.2% (+1.2 pct YoY, +2.7 pct QoQ).

2.2 Sub-Segment Analysis: Winners and Laggards

The recovery is uneven across the value chain. Upstream materials are leading the profit rebound, while mid-stream manufacturing and auxiliary materials remain under pressure.

Q3 2025 Net Profit Growth Ranking (YoY / QoQ):

*Note: Cell segment QoQ volatility is due to base effects and specific company performance variations.

2.3 Deep Dive: Upstream & Mid-Stream Dynamics

A. Polysilicon: Price Stabilization & Profit Turnaround
* Trend: Government-led restrictions on capacity expansion and mandatory utilization rate reductions have tightened supply. Polysilicon prices have risen sequentially, leading to a clear repair in profitability.
* Performance: Leading enterprises have returned to profitability in Q3.
* Inventory: Sector inventory ended Q3 at RMB 23.2 billion (-2.3% YoY, +1.4% QoQ). Leaders show divergence: Daqo New Energy reduced inventory by 21% QoQ, while Tongwei increased by 12.2%, reflecting strategic stockpiling or sales pacing differences.

B. Wafers: Bottoming Out
* Trend: "Anti-involution" measures have pushed wafer prices upward. Profitability is visibly repairing from the deep losses seen in previous quarters.
* Inventory: Sector inventory at RMB 25.4 billion (-24.4% YoY, +2.8% QoQ). The significant YoY drop indicates successful destocking.
* Cash Flow: Q3 operating cash flow surged to RMB 4.5 billion (+134% QoQ). Leaders like LONGi Green Energy (RMB 2.3 billion, +82% QoQ) and TCL Zhonghuan (RMB 110 million, +237% QoQ) show strong cash generation.

C. Cells: N-Type Technology Dominance
* Trend: N-type TOPCon technology is accelerating its penetration, becoming the mainstream.
* Performance: Q3 Revenue RMB 5.17 billion (+13% YoY). Gross margin improved to 4.8% (+17 pct YoY).
* Company Spotlight:
* Aiko Solar: Gross margin reached 7.4% in Q3 (+22 pct YoY, +7 pct QoQ), demonstrating the premium for advanced BC technology.
* Junda Shares: Gross margin was 0.7% (+3 pct YoY, -8 pct QoQ), still navigating the transition.
* Risk: Inventory rose 41.2% QoQ to RMB 3.54 billion, and operating cash flow turned negative (-RMB 1.11 billion), indicating working capital pressure amidst the tech transition.

D. Modules: Intense Competition Persists
* Trend: Despite upstream price hikes, module prices continue to face downward pressure due to intense competition. Margins remain thin.
* Performance: Q3 Revenue RMB 85.32 billion (-17% YoY). Gross margin was 4.7% (-6 pct YoY).
* Company Divergence:
* Canadian Solar: Maintained a healthier margin of 7.2% (+2 pct YoY).
* JA Solar: Reported a negative margin of -0.9%.
* JinkoSolar: Margin at 3.8% (-9 pct YoY).
* LONGi: Margin at 4.9% (-5 pct YoY).
* Outlook: Profitability is expected to improve only as backward capacity is cleared and downstream price limits are enforced. Contract liabilities rose 21% QoQ to RMB 25.4 billion, suggesting some order book resilience.

2.4 Auxiliary Materials: Pressure with Signs of Relief

A. Glass: Price Hikes Drive Q4 Optimism
* Performance: Q3 Revenue RMB 10.88 billion (+8% YoY, +19% QoQ). Gross margin improved to 10.6% (+5 pct YoY).
* Driver: Supply constraints from polysilicon production cuts reduced glass demand initially, but subsequent production cuts by glass manufacturers and rising demand led to price hikes in September.
* Leader: Flat Glass Group reported a Q3 gross margin of 16.8% (+5 pct QoQ).
* Inventory: Sector inventory dropped 30.8% YoY to RMB 4.05 billion, indicating a healthier supply-demand balance.

B. Encapsulant Film (EVA/POE): Cost Pressure Easing
* Performance: Q3 Revenue RMB 12.65 billion (-7% YoY). Gross margin was 13.7% (+1 pct YoY, +1 pct QoQ).
* Dynamics: EVA particle prices softened then recovered, but average Q3 prices remained below Q2. However, leaders like First Material (Foster) maintained profitability due to superior cost control (net profit per sqm: RMB 0.25), while smaller players struggled.
* Outlook: With glass and film prices rising in September, Q4 profitability is expected to improve further.

C. Inverters & Storage: The Growth Engine

The inverter and storage segment stands out as the most resilient and high-growth area within the new energy landscape.

• Financials:

  • 9M2025: Revenue RMB 101.35 billion (+25% YoY); Net Profit RMB 16.35 billion (+37% YoY).
  • Q3 2025: Revenue RMB 35.33 billion (+16% YoY); Net Profit RMB 5.7 billion (+26% YoY).
  • Margins: Q3 Gross Margin 34.8% (+3 pct YoY, +2 pct QoQ); Net Margin 16.1% (+1 pct YoY).

• Demand Drivers:

  1. Europe (Residential Storage): Inventory destocking is largely complete. Demand is recovering, catalyzed by energy security concerns (e.g., recent blackouts in Spain).
  2. Emerging Markets (SE Asia, Australia): Southeast Asia sees rising demand due to grid instability and electricity price hikes. Australia is experiencing explosive growth in H2 2025 driven by subsidies.
  3. China (Large-Scale Storage): Policy shift from "mandatory allocation" to "economic viability." Provinces like Inner Mongolia, Gansu, Hebei, Ningxia, and Xinjiang have introduced capacity电价 (capacity tariff) compensation mechanisms.
     • Example: Inner Mongolia offers RMB 0.35/kWh discharge compensation, yielding project IRRs of 10-20%.
     • Impact: 2025 domestic large-scale storage installations are projected to reach ~150 GWh (+40% YoY), with 2026 expected to exceed 220 GWh (+50% YoY).
  4. USA (Large-Scale Storage): Rush to install before potential tariff changes, plus AI data center demand for green power direct connection. 2025 installations estimated at 50 GWh, with a 5-year CAGR of 40-60%.

• Company Performance Highlights:

  • Sungrow: Q3 Revenue RMB 22.87 billion (+21% YoY); Net Profit RMB 4.15 billion (+57% YoY). OCF surged to RMB 6.48 billion (+294% QoQ).
  • Ginlong Technologies: Net profit swung to RMB 100 million in Q3 (+201% YoY).
  • Deye Shares: Q3 Net Profit RMB 820 million (-18% YoY), facing some headwinds but maintaining strong margins (40.3%).

3. Wind Power: Margin Inflection Point Confirmed

The wind power sector is exhibiting robust growth with a confirmed turnaround in profitability metrics. The "anti-involution" in turbine bidding has translated into higher prices and better margins.

3.1 Overall Performance

• 9M2025: Revenue RMB 300.2 billion (+27% YoY); Net Profit RMB 15.5 billion (+20% YoY).
• Q3 2025: Revenue RMB 113.5 billion (+22% YoY, +1% QoQ); Net Profit RMB 5.0 billion (+33% YoY, -22% QoQ).
• Margins: Q3 Gross Margin 14.1% (-1.1 pct YoY, -0.9 pct QoQ). Note: While Q3 margins dipped slightly QoQ due to mix, the YoY trend in net margin (+0.4 pct) and specific sub-segments shows improvement.

3.2 Sub-Segment Analysis

A. Turbines (OEMs): Volume Up, Margins Turning
* Performance: Q3 Revenue RMB 43.82 billion (+24.9% YoY); Net Profit RMB 820 million (-1.7% YoY).
* Margin Inflection: Benefiting from bid price increases in H2 2024 and May 2025, some OEMs are seeing gross margin inflection points. Scale effects are helping to dilute expenses.
* Company Highlights:
* Goldwind: Q3 Revenue RMB 19.61 billion (+25.4% YoY); Net Profit RMB 1.1 billion (+170.6% YoY). A clear leader in the turnaround.
* Mingyang Smart Energy: Q3 Net Profit RMB 160 million (+5.4% YoY).
* Sany Heavy Energy: Q3 Net Loss RMB 90 million, indicating ongoing challenges despite revenue growth (+54.6% YoY).
* Windey: Q3 Net Profit RMB 110 million (-9.6% YoY), but revenue grew 43.2%.

B. Towers & Foundations: Overseas Boom
* Performance: Q3 Revenue RMB 7.39 billion (+50.6% YoY); Net Profit RMB 610 million (+394.8% YoY).
* Driver: Strong overseas demand, particularly for offshore wind foundations, is driving high-margin exports. Domestic capacity utilization is also improving.
* Company Highlights:
* Dajin Heavy Industry: Q3 Net Profit RMB 340 million (+215.1% YoY). Export offshore wind shipments reached 52,000 tons in Q3. Gross margin hit 35.91%.
* Haili Wind Power: Q3 Net Profit RMB 140 million (+779.3% YoY).
* Taisheng Wind Power: Q3 Net Profit RMB 100 million (+394.5% YoY).

C. Subsea Cables: High Moat, High Margin
* Performance: Q3 Revenue RMB 35.01 billion (+11.8% YoY); Net Profit RMB 1.97 billion (+7.0% YoY).
* Status: Maintains high gross margins. Order books for leading manufacturers are at record highs.
* Company Highlights:
* Orient Cable: Q3 Net Profit RMB 440 million (+53.1% YoY). Backlog remains strong with significant high-voltage subsea cable orders.
* Zhongtian Technology: Q3 Net Profit RMB 770 million (-9.4% YoY), slight dip but overall stable.
* Hengtong Optic-Electric: Q3 Net Profit RMB 760 million (+8.1% YoY).

D. Castings & Forgings: Profitability Rising
* Performance: Q3 Revenue RMB 8.85 billion (+26.2% YoY); Net Profit RMB 440 million (+131.2% YoY).
* Driver: Shortage in precision machining capacity for large-megawatt components has led to price increases.
* Company Highlights:
* Riyue Heavy Industry: Q3 Gross Margin 17.5% (+1.6 pct QoQ).
* Jinlei Shares: Q3 Gross Margin 26.4% (+1.6 pct QoQ).

E. Blades & Bearings
* Blades: Q3 Net Profit RMB 610 million (+167.6% YoY). Sinoma Science & Technology led with Q3 Net Profit RMB 480 million (+234.8% YoY).
* Bearings: Q3 Net Profit RMB 290 million (+227.2% YoY). Xinqianglian reported Q3 Net Profit RMB 260 million (+308.6% YoY), benefiting from localization trends.

Risks / Headwinds

Investors should be aware of the following risks that could impact the sector's recovery trajectory:

1. Intensified Competition: Despite "anti-involution" efforts, the PV supply chain still faces structural overcapacity. If price wars reignite, especially in the module segment, profit margins could be compressed again.
2. Policy Volatility: The new energy sector is highly policy-dependent.
   • Trade Barriers: Increased tariffs or trade restrictions in the US, EU, or other key markets could hinder export growth.
   • Domestic Subsidies: Changes in subsidy policies or grid connection rules could affect project economics.
3. Grid Curtailment & Integration: As renewable penetration increases, grid stability becomes a challenge. If grid infrastructure upgrades lag, curtailment rates may rise, limiting the effective utilization of new installations and dampening demand.
4. Technology Iteration Risk: Rapid advancements in PV technology (e.g., BC, HJT, Perovskite) risk rendering existing P-type or early N-type assets obsolete, leading to asset impairment charges for laggards.
5. Raw Material Price Fluctuation: Volatility in prices of silver, copper, aluminum, and polysilicon can impact cost structures and margins unpredictably.
6. Exchange Rate Risk: Many leading Chinese new energy companies are export-oriented. Significant fluctuations in the RMB exchange rate can impact international competitiveness and reported earnings.

Rating / Sector Outlook

Sector Rating: Overweight

We believe the new energy sector is transitioning from a phase of chaotic expansion to one of structured consolidation and quality growth. The worst of the profitability crisis in PV appears to be behind us, with Q3 2025 marking a clear bottom. Wind power is in a steady growth channel with improving margins.

Investment Themes:
1. High景气度 (High Prosperity): Inverters and Energy Storage. Driven by global demand recovery, policy support in China/US, and technological moats.
2. Supply-Side Reform Beneficiaries: PV leaders with cost advantages and strong balance sheets that will survive the consolidation and capture market share as weaker players exit.
3. Offshore Wind & Export Chain: Companies with strong overseas order books (Towers, Cables) benefiting from higher margins and global decarbonization trends.
4. New Technology Leaders: Companies leading in N-type cell technologies (TOPCon, BC, HJT) and advanced materials.

Investment View

Based on the Q3 2025 financial review, we recommend focusing on companies with demonstrable earnings resilience, strong cash flows, and exposure to high-growth niches. Below is our curated list of recommended stocks, categorized by investment logic.

1. High Prosperity: Inverters & Storage Systems

These companies benefit from the robust growth in residential, commercial, and utility-scale storage globally.

(Note: PE ratios based on 2025E estimates as of Nov 14, 2025. Some valuations reflect transitional earnings.)

2. PV Leaders: Supply-Side Reform & Cost Advantage

These companies are best positioned to survive the consolidation phase and benefit from price stabilization.

Module Leaders with Strong Channels:
* JinkoSolar (688223.SH): Buy. Top shipment volumes; strong global brand.
* Canadian Solar (688472.SH): Buy. Diversified business model (modules + storage); healthy margins.
* JA Solar (002459.SZ): Buy. Vertically integrated; cost control.
* Trina Solar (688599.SH): Buy. Strong module technology; growing storage business.
* LONGi Green Energy (601012.SH): Buy. Technology leader (BC); brand value; expected to lead next-gen tech adoption.
* Hengdian DMEGC (002056.SZ): Buy. Niche leader in small modules; profitable.

3. New Technology Leaders

Companies driving or benefiting from the shift to N-type and advanced metallization.

(Watch List: TCL Zhonghuan, Meichuang Shares)

4. Wind Power: Steady Growth & Margin Recovery

Detailed Financial Appendix & Analysis

A. Photovoltaic Sector: Deep Dive into Q3 Turnaround

The Q3 2025 results for the PV sector are a testament to the effectiveness of industry self-discipline and government-guided supply-side reforms. The shift from a net loss of RMB 350 million in Q2 to a net profit of RMB 284 million in Q3 is not merely a seasonal fluctuation but a structural improvement.

1. Polysilicon: The Anchor of Recovery
The polysilicon segment, which had been the epicenter of price crashes, is now the primary driver of profit recovery.
* Price Mechanism: The average selling price (ASP) of polysilicon began to tick up in Q3. This was not driven by a surge in demand, but by a controlled reduction in supply. Major producers adhered to lower utilization rates, and new capacity commissions were delayed.
* Cost Curve: Leading players like Tongwei and GCL have cash costs well below the current market price. As prices rose above the cash cost of second-tier producers, the entire industry moved back into positive contribution margin territory.
* Inventory Strategy: The slight increase in inventory for some leaders (e.g., Tongwei) suggests they are confident in holding stock for higher prices in Q4, rather than dumping volume.

2. Wafers: From Bleeding to Breakeven
Wafer manufacturers faced the brunt of the oversupply in 2024. In Q3 2025:
* Utilization Rates: Leading wafer makers operated at higher, more sustainable utilization rates, spreading fixed costs over larger volumes.
* Technology Mix: The shift to N-type wafers (larger sizes, thinner kerf loss) has improved yields and reduced non-silicon costs.
* Cash Flow: The dramatic improvement in operating cash flow (e.g., LONGi’s +82% QoQ) indicates that companies are successfully collecting receivables and managing working capital, a critical sign of financial stabilization.

3. Cells & Modules: The Lagging Indicators
While upstream profits are recovering, mid-stream players are still squeezed.
* Cell Makers: Companies like Aiko Solar are proving that technology differentiation (BC cells) can command a premium. However, standard TOPCon cell makers are facing commoditization. The negative QoQ profit growth for some cell makers reflects the lag in passing on upstream cost increases to downstream module buyers.
* Module Makers: This segment remains the most competitive. With low barriers to assembly and intense brand competition, margins are thin. The -94% YoY profit decline for the sector highlights the severity of the price war. However, the +16% QoQ improvement suggests the bleeding has stopped. Companies with strong overseas channels (like Canadian Solar and Trina) are faring better than those reliant solely on the domestic market.

4. Auxiliary Materials: The Beta Play
* Glass: The glass sector is a classic cyclical play. With supply cuts and rising PV installations, glass prices have rebounded. Flat Glass Group’s margin expansion is a leading indicator for the rest of the sector.
* Film: The encapsulant film market is consolidating. Foster’s ability to maintain profits while others lose money demonstrates the importance of scale and vertical integration (owning EVA particle production).

B. Wind Power Sector: The Quiet Performer

While PV grabs headlines for its turnaround, wind power is delivering consistent, high-quality growth.

1. Offshore Wind: The High-Margin Driver
* Subsea Cables: This segment has the highest barriers to entry (technology, qualifications, track record). Orient Cable and Zhongtian Technology enjoy quasi-monopolistic positions in high-voltage DC cables. Their order books are full for the next 2-3 years, providing visibility on earnings.
* Foundations: Dajin Heavy Industry’s success highlights the global nature of the offshore wind boom. European projects are sourcing foundations from China due to cost advantages and supply constraints in Europe. This export business carries significantly higher margins than domestic sales.

2. Onshore Wind: Volume Recovery
* Turbine Bidding Prices: After hitting rock bottom in 2023, turbine bidding prices have stabilized and even increased slightly in 2025. This is crucial for OEMs like Goldwind, who had been selling at near-loss levels.
* Component Suppliers: Casting and forging companies (Riyue, Jinlei) are benefiting from the trend towards larger turbines. Larger turbines require more complex, precision-machined components, creating a bottleneck in high-end processing capacity. This scarcity allows suppliers to raise prices and improve margins.

3. International Expansion
Chinese wind companies are increasingly looking overseas. Not just for exports, but for local manufacturing. This de-risks their revenue streams from domestic policy fluctuations and taps into higher-margin markets in Europe, Southeast Asia, and the Middle East.

C. Energy Storage: The New Growth Pole

Storage is no longer just an accessory to PV; it is a standalone growth industry.

1. Policy-Driven Economics in China
The introduction of capacity tariffs in provinces like Inner Mongolia and Gansu has fundamentally changed the economics of large-scale storage.
* Before: Storage was a cost center, mandated by policy but rarely dispatched. IRRs were negative or single-digit.
* After: Capacity payments provide a stable revenue stream regardless of dispatch. Combined with arbitrage opportunities in spot markets, IRRs have jumped to 10-15%. This unlocks a massive pipeline of projects that were previously uneconomic.

2. Global Demand Resilience
* Europe: Residential storage is recovering as households seek energy independence.
* US: The Inflation Reduction Act (IRA) continues to drive utility-scale storage. The added catalyst of AI data centers requiring reliable, green power is creating a new, high-value customer segment.
* Emerging Markets: Countries with weak grids (South Africa, Southeast Asia) are adopting storage as a grid-stabilization tool, not just for renewable integration.

3. Inverter Companies as System Integrators
Leading inverter companies (Sungrow, Huawei, Ginlong) are evolving into full-system integrators. They offer not just the inverter, but the battery management system (BMS), energy management system (EMS), and even the battery packs. This vertical integration allows them to capture more value and offer better performance guarantees to customers.

D. Valuation Perspective

As of November 14, 2025, the valuations of new energy stocks reflect the mixed sentiment of the market.

• PV Leaders: Trading at low multiples (often <20x forward PE for profitable companies) due to lingering fears of overcapacity. However, as profits normalize in 2026, these multiples appear attractive. Companies with negative current earnings (like Tongwei) are valued on their book value and future earnings potential.
• Inverters/Storage: Commanding higher multiples (25-30x+) due to their superior growth rates and higher ROE. Sungrow, for instance, trades at a premium justified by its global dominance and cash flow generation.
• Wind: Trading at moderate multiples (15-20x). The sector is viewed as a "steady eddy" – less explosive growth than storage, but more predictable than PV.

Investment Strategy:
We advise a barbell strategy:
1. Core Holdings: High-quality, cash-generative leaders in Inverters (Sungrow) and Wind (Goldwind, Orient Cable) for stability and steady growth.
2. Satellite Positions: Cyclical turnaround plays in PV (Tongwei, Flat Glass) and high-growth tech leaders (Aiko Solar) for alpha generation as the sector recovers.

Conclusion

The Q3 2025 financial reports confirm that the New Energy sector is navigating a critical transition. The photovoltaic industry has likely passed its profitability trough, thanks to disciplined supply-side management. The wind power industry is enjoying a sweet spot of volume growth and margin recovery. Meanwhile, energy storage and inverters continue to outperform, driven by global decarbonization trends and supportive policies.

For institutional investors, the key is to differentiate between companies that are merely surviving and those that are thriving. Focus on cost leaders, technology innovators, and global champions with strong balance sheets. The era of easy money from capacity expansion is over; the era of earning returns through operational excellence and technological superiority has begun.

Disclaimer: This report is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult with financial advisors before making investment decisions. Past performance is not indicative of future results.