"Big Banks" JP Morgan: The rise in Goldwind's stock price due to Blue Arrow Aerospace may be an overreaction

AASTOCKS
2026.01.07 03:03

JP Morgan's report points out that the prices of solar silicon wafers and batteries will rise significantly by December 2025, mainly due to the increase in key material costs (including polysilicon and silver paste), and partly driven by anti-involution policies. With the establishment of a polysilicon industry consolidation platform in early December 2025, the bank expects policy-driven industry consolidation to occur in 2026. The bank has given "Overweight" ratings to GCL-Poly Energy (03800.HK) and Daqo New Energy (DQ.US).

The stock prices of Goldwind Technology (02208.HK) H shares and Goldwind Technology (002202.SZ) A shares are expected to rise by 17% and 18%, respectively, in early January 2026 (from December 31, 2025, to January 6, 2026), while the Hang Seng China Enterprises Index rose by 4% and the Shenzhen Component Index rose by 3% during the same period. According to communications with investors, this round of increase may be attributed to market expectations of the value release of its 4.14% stake in Landspace, as Landspace currently has IPO plans. However, the bank believes that the rise in Goldwind Technology's stock price due to Landspace may be an overreaction. Since December 31, 2025, Goldwind Technology's market capitalization has increased by approximately RMB 14 billion. According to the bank's calculations, this implies that Landspace's valuation multiple will reach 88 times the price-to-book ratio for the fiscal year 2024 (assuming no group discount at the Goldwind Technology level). In the upstream wind power sector, the bank suggests investors shift to Dongfang Cable (603606.SH).

Siyuan Electric (002028.SZ) has signed a three-year memorandum of understanding for energy storage cooperation with CATL (03750.HK), with a total scale of 50GWh. The bank believes this cooperation demonstrates Siyuan Electric's ambition to develop its energy storage system business, with a total capacity that could support approximately RMB 20 billion in annual revenue once fully completed. Based on preliminary estimates, the bank expects this 50GWh cooperation could bring more than 10% upside to Siyuan Electric's market consensus earnings forecast for the fiscal years 2027 to 2028

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