On June 5th, the Hong Kong stock market saw the simultaneous listing of three new shares: Dajin Heavy Industry Co.,Ltd. (01081.HK / 002487.SZ), Tianchen Bio-B (01779.HK), and Longfeng Group (02290.HK). In stark contrast to the recent frenzy for many new listings, Dajin Heavy Industry Co.,Ltd. faced a lukewarm reception from investors, breaking its issue price shortly after opening and falling over 11% intraday.
As of the latest update, the decline had narrowed to 5.8%, with the share price at HK$62.55, giving the company a total market capitalization of approximately HK$46.15 billion. The IPO was priced at HK$66.40 per share. Based on a board lot of 100 shares and excluding handling fees, investors are currently facing a paper loss of about HK$385 per lot.
The first-day performance of Dajin Heavy Industry Co.,Ltd.'s H-shares stands in sharp contrast to the strong trend of its A-shares over the past two years. The company's A-shares surged over 150% last year and have gained more than 24% year-to-date. During the recent subscription period, the market enthusiasm for Dajin Heavy Industry Co.,Ltd. had already noticeably cooled, falling far short of the thousand-fold oversubscriptions seen for most recent IPOs.
Data shows its Hong Kong public offering was only 134.39 times subscribed. According to Wind statistics, among the 63 new listings this year, Dajin Heavy Industry Co.,Ltd.'s public subscription multiple ranks 52nd, placing it among the bottom twelve. In contrast, there have been as many as 35 companies this year achieving thousand-fold or even ten-thousand-fold subscriptions, such as BBSB INTL (08610.HK) (10,745.13 times), Dano Pharmaceutical-B (06872.HK) (9,015.11 times), and Tianxing Medical (01609.HK) (7,823.13 times).
International Placement Shows Strength
However, the company's international placement performed relatively better, achieving a 10.68 times subscription (before any over-allotment option adjustments). This was primarily due to a strong lineup of cornerstone investors, attracting renowned institutions such as GIC Private Limited, Hillhouse Capital, UBS Asset Management (Singapore), Taikang Life Insurance, Prudential (02378.HK), and Millennium.
These cornerstone investors were collectively allocated 42.2174 million shares, involving over HK$2.8 billion. The company's global offering totaled approximately 100 million shares (assuming the over-allotment option is fully exercised and before any exercise of the greenshoe option), with the final offer price set at HK$66.40, raising net proceeds of about HK$6.465 billion.
The funds will be used for projects including the upgrade of deep-sea comprehensive solutions, investment and construction of a European assembly base, and a global R&D center. Additionally, the company over-allocated 15.0015 million shares. This over-allotment can be covered through the exercise of the greenshoe option, purchases in the secondary market at a price not exceeding the offer price, or through deferred delivery arrangements. The company will issue an announcement if the greenshoe option is exercised.
Company Profile and Market Position
Established in Liaoning Province in 2003, Dajin Heavy Industry Co.,Ltd. was the first listed company in China's A-share market specializing in wind power tower foundations. Its core business encompasses R&D and manufacturing of offshore wind power equipment, ocean-going special transportation, ship design and construction, wind and photovoltaic power generation, and operation of wind power home ports.
Within the wind power sector, the company provides a one-stop "construction + transportation + delivery" solution for global large-scale offshore wind power developers, which is also its primary source of revenue. The company's market share and industry scarcity are notable. According to Frost & Sullivan data, based on sales value of monopiles in the first half of 2025, Dajin Heavy Industry Co.,Ltd. has become the number one supplier of offshore wind power foundation equipment in the European market, with its market share increasing from 18.5% in 2024 to 29.1% in the first half of 2025.
During the same period, by sales value, the company ranked fifth among wind tower suppliers in China with a 2.4% market share, compared to ranking third with a 4.4% share in 2024. As of June 30, 2025, based on a review of publicly disclosed documents from several competitors, Dajin Heavy Industry Co.,Ltd. is the only supplier in the Asia-Pacific region that has achieved batch deliveries of monopiles to Europe.
Financial Performance and Underlying Risks
As a leading domestic wind power equipment manufacturer with a significant share in the European market, the company has achieved substantial success there. From 2023 to 2025, revenue from overseas markets, primarily Europe, grew rapidly from 1.715 billion yuan to 4.597 billion yuan. Its contribution to total revenue climbed from 39.6% to 74.5%, driving the overall 2025 revenue to 6.174 billion yuan.
As of the end of March 2026, the company's total overseas order backlog for wind power equipment reached 8.332 billion yuan, mainly due to the gradual conversion of existing orders into recognized revenue. The company's profitability is also strong. From 2023 to 2025, net profit was 425 million yuan, 474 million yuan, and 1.103 billion yuan respectively, with the net profit margin rising accordingly from 9.8% to 12.5% and then 17.9%.
However, Dajin Heavy Industry Co.,Ltd. also faces significant concerns. In 2025, the combined sales to its top five customers amounted to 4.887 billion yuan, accounting for 79.2% of total sales. Coupled with the fact that nearly 70% of its revenue comes from the European market, this creates a dual concentration in both customers and region. This makes the company's fundamental performance highly dependent on leading European energy giants and the policy cycles of a single region, continuously compressing its operational margin for error.
A recent research report from Guohai Securities highlighted related risks, including: 1) slower-than-expected development of offshore wind power in Europe; 2) slower-than-expected progress of European offshore wind policies; 3) increasing international trade barriers; 4) rising raw material costs driven by geopolitical conflicts; and 5) intensifying industry competition.
Guozheng International also noted that the company's overseas revenue is mainly from the European market with a high customer concentration. Projects delivered under the DAP (Delivered-at-Place) model have long execution and service cycles, requiring significant working capital and posing volatility risks.
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