VWSYF - TPI Composites: Renewable Energy Tailwinds To Continue

• Wind energy has grown significantly in the past decade driven by government initiatives and cost reduction.
• TPIC is uniquely positioned in the supply chain, by enabling wind turbine OEMs to outsource the manufacturing of wind blades, to lower costs, access to technological capabilities and increase flexibility.
• We expect TPIC to continue to benefit from the growth of the wind energy sector, especially in emerging markets and the trend towards outsourcing.
• After a period of heavy investments and transitions during 2018-2019, we see opportunities for TPIC to expand margins significantly and reach the company's target of 12% by 2025.
• TPIC is currently trading below other wind turbine OEMs and the valuation gap has widened recently which we do not believe is justified. Using a combination of DCF and multiple approach suggests a ~25% upside to the current share price.

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