Xinjiang Goldwind Science & Technology Co. (2208) said profit almost tripled as orders expanded and costs improved at China’s biggest wind-turbine maker.
Net income rose to 427.6 million yuan ($69 million) in 2013 from 153.1 million yuan, Goldwind said today in a filing to the Shenzhen stock exchange. The mean estimate of four analysts compiled by Bloomberg was for 675 million yuan profit. Sales jumped 8.7 percent to 12.3 billion yuan, Goldwind said.
China “saw a recovery in the wind power market in 2013, with an obvious pick-up in new installations,” the company said. It sees a rebound in the global wind market this year.
Goldwind, along with competitors led by Vestas Wind Systems A/S (VWS) of Denmark, seek to cut costs to improve profitability. China, the world’s biggest wind market, may add 14.7 gigawatts of wind capacity this year, compared with 14 gigawatts estimated for 2013, according to Bloomberg New Energy Finance. The gross margin on turbines was 20.25 percent last year, 6.56 percentage points higher than the previous year, Goldwind said.
Orders outstanding were about 3,364 megawatts at the end of 2013, it said. It has an additional 4,156.5 megawatts of orders lined up for which contracts have to be signed.
The stock fell 3.6 percent to HK$8.39 at the close in Hong Kong trading before the earnings were announced.
To contact Bloomberg News staff for this story: Feifei Shen in Beijing at email@example.com