On November 7, Delijia, a leading domestic wind turbine gearbox manufacturer, successfully listed on the Shanghai Stock Exchange's main board. The stock opened at 96.94 yuan per share, surging 107.67% on its debut. However, the opening price marked its peak, with shares subsequently declining to 72.77 yuan by November 21, a 25% drop from its highest point.
Boosted by increased sales from its largest customer, Goldwind Science & Technology, Delijia reported significant revenue and profit growth in the first three quarters of 2025. Despite this, concerns linger about sustainability, as downstream wind power equipment manufacturers are developing in-house gearbox solutions to cut costs. For instance, Envision Energy, previously Delijia's third-largest customer, has exited the top five clients after producing its 10,000th gearbox in September 2025.
Delijia's IPO pricing stood out with a P/E ratio of 34.98x, far exceeding the Shanghai main board's 2025 average of 17.79x. This high valuation brought 92.95 million yuan in underwriting fees, primarily benefiting lead underwriter Huatai Securities. Post-listing, the stock initially plunged 36% before recovering slightly.
The company's rapid growth owes much to key supporters like Goldwind and Sany Renewable Energy, the latter backed by former Hunan billionaire Liang Wengen. Sany Renewable Energy provided critical early funding and equipment, helping founder Liu Jianguo transition from engineer to billionaire. However, Sany's fluctuating procurement volumes—dropping sharply in 2021-2022 before rebounding during Delijia's IPO preparation—raise questions about pre-IPO financial engineering.
While Delijia dominates China's wind gearbox market (16.22% share), its heavy reliance on major clients poses risks as competitors develop alternatives. Diversifying products and customer base emerges as a strategic priority to mitigate potential order cancellations.
Comments