On May 18, Dajin Heavy Industry Co.,Ltd. (002487.SZ), a globally leading supplier of core offshore wind power equipment, passed the listing hearing on the main board of the Hong Kong Stock Exchange, with Huatai International and China Merchants Securities International acting as joint sponsors. Less than a month prior, the company's Q1 2026 report once again exceeded market expectations: revenue reached RMB 19.07 billion, a year-on-year increase of 67.17%; net profit attributable to shareholders was RMB 4.35 billion, a year-on-year surge of 88.19%—setting a new historical high for quarterly net profit despite pressure from foreign exchange rates. With over RMB 10 billion in overseas orders on hand and a 29.1% market share leading the European monopile market, Dajin Heavy Industry stands at the intersection of its own rapid performance growth and the global upcycle in offshore wind power. Concurrently, its A-share price has been steadily rising over the past year or two. As of the close on May 20, its share price was RMB 77.03, with a total market capitalization of RMB 49.126 billion. Upon a formal listing in Hong Kong, Dajin Heavy Industry will establish a dual "A+H" share structure. Transitioning from onshore to offshore wind power, the company has charted a steep global growth trajectory over six years—and the Hong Kong listing marks a key signal for the upcoming second phase of this ascent. So, what is the investment value of Dajin Heavy Industry? Will investors in the Hong Kong market be willing to "buy in"?
Structural Examination Behind High Profit Growth: Volume and Price Rise vs. Three Underlying Concerns Dajin Heavy Industry is a globally leading supplier of core offshore wind power equipment. With nearly two decades of experience in the new energy sector, it provides large global offshore wind power developers with one-stop "construction + transportation + delivery" solutions for wind power foundation equipment. Specifically, the company's products and services have gradually expanded from the R&D and manufacturing of offshore wind power foundation equipment to areas such as ocean-going specialized transport, ship design and construction, and wind power port operations. It is also actively developing new energy development and operation businesses, gradually transitioning from a product supplier to a system service provider. According to Frost & Sullivan data, based on monopile sales revenue in the first half of 2025, the company ranked first in the European market for offshore wind power foundation equipment suppliers, with its market share increasing from 18.5% in 2024 to 29.1% in the first half of 2025. Furthermore, as of June 30, 2025, it was the only supplier in the Asia-Pacific region to achieve batch deliveries of monopiles to Europe. Notably, 2025 was a milestone year for Dajin Heavy Industry's performance. Prospectus data shows that in 2025, the company achieved annual operating revenue of RMB 6.174 billion, a year-on-year increase of 63.34%; net profit attributable to shareholders was RMB 1.103 billion, a substantial year-on-year surge of 132.82%. More noteworthy are the structural changes—during the period, the company's export business revenue reached RMB 4.597 billion, a sharp year-on-year increase of 165.26%, accounting for 74.46% of total revenue. The gross profit margin for the export business was 33.95%, with its contribution to overall gross profit soaring from 59.16% to 81.06%. Consequently, driven by the strong performance of its overseas business, Dajin Heavy Industry's overall net profit margin climbed from 9.8% in 2023 to 17.9% in 2025. Entering 2026, Dajin Heavy Industry's growth momentum further accelerated. According to the company's Q1 report, Q1 revenue was RMB 1.907 billion, with net profit attributable to shareholders at RMB 435 million. The gross profit margin rose to 39.19%, setting a new historical high for a single quarter. Following the maiden voyage of its own transport vessel, combined with declining transportation costs and rising unit prices for European monopile orders, profitability is expected to have further upside potential. Orders are the best "water level gauge" for performance. As of the end of 2025, Dajin Heavy Industry had approximately RMB 10 billion in overseas orders on hand, equivalent to 2.2 times its 2025 overseas revenue, primarily scheduled for delivery over the next two years. These projects cover multiple offshore wind power project clusters in the North Sea, Baltic Sea, and other European regions. The RMB 10 billion in overseas orders on hand essentially "scripts" the performance growth for the next two years. Alongside the high growth in revenue and profit, Dajin Heavy Industry's operating cash flow turned positive to RMB 438 million in Q1 2026, which is the most direct footnote to the improvement in its profit quality. However, it must be noted that while Dajin Heavy Industry's outperforming results are impressive, the structural characteristics behind the high profit growth also warrant careful scrutiny. First, the overseas gross profit margin decreased by 4.6 percentage points year-on-year in 2025, ending two consecutive years of double-digit growth, necessitating ongoing attention to the competitive landscape in the European market. Second, customer concentration has risen significantly—the sales proportion of the top five customers gradually increased from 52.8% in 2023 to 79.2% in 2025, indicating growing reliance on a few major clients. Third, financial costs surged from RMB 5.63 million in 2024 to RMB 32.2 million in 2025, with borrowing scale climbing to over RMB 1.3 billion. The current profit growth is, to some extent, achieved against a backdrop of significantly expanded financial leverage, and future capital return efficiency requires continuous observation. Judging from the high growth in revenue and profit, Dajin Heavy Industry, as a globally leading supplier of core offshore wind power equipment, clearly deserves market recognition for its performance. However, standing at a high point also means facing stronger winds and waves. The adjustment in export gross margin, concerns over customer concentration, and the rise in financial leverage constitute a three-part variation behind this impressive report card that requires ongoing examination.
Positioned on the Global Offshore Wind Power Golden Track: Policy, Energy Security, and Demand Resonance Dajin Heavy Industry's rapid performance ascent is not an isolated company story but a wave within the global tide of energy transition. Currently, the global offshore wind power sector is in an unprecedented upcycle. According to prospectus data, global new offshore wind power installations have maintained steady growth in recent years, increasing from 6.9 GW in 2020 to 8.0 GW in 2024, with a compound annual growth rate (CAGR) of 3.8%. With policy support and technological development in two core regions, Europe and the Asia-Pacific, global new offshore wind power installations are expected to reach 36.7 GW by 2030, with a CAGR of 28.9% from 2024 to 2030. The expected growth rate for global new offshore wind installations is projected to far exceed historical levels. (Image source: Dajin Heavy Industry Prospectus) Among these, China and Europe have become the core forces driving global offshore wind power development. As of the end of 2024, China contributed approximately half of the global cumulative offshore wind power installed capacity, while Europe, represented by the UK, Germany, the Netherlands, and Denmark, together with China accounted for about 94.5% of global installed capacity. Europe's new wind power installations grew from 14.7 GW in 2020 to 16.5 GW in 2024, with a CAGR of 2.9%. It is expected that new installations will further increase to 38.4 GW by 2030, with the CAGR from 2024 to 2030 rising to 15.1%. China's offshore wind power market exhibited a pattern of initial suppression followed by recovery during the "14th Five-Year Plan" period. In 2024, national new offshore wind power installations reached 4 GW, showing significant fluctuation compared to the 1.3% CAGR from 2020 to 2024, primarily influenced by the policy withdrawal of national subsidies in 2022, leading to phased adjustments after some projects were rushed. However, with the deepening of the "dual carbon" goals, coastal provinces have successively introduced local subsidy policies, coupled with the release of policy dividends such as the "Deep-Sea Offshore Wind Power Management Measures," the industry is accelerating towards a high-quality development stage. Notably, as European energy security anxiety becomes a catalyst for rigid demand, the "overseas expedition" of China's wind power industry chain has shifted from an "option" to a "necessity." With European auction capacity expected to hit a record high in 2026, Dajin Heavy Industry has completed all strategic positioning just before the trend arrives. It is understood that Dajin Heavy Industry has secured a leading position in the first tier of the European offshore wind monopile market, with a market share far ahead of most domestic and international peers, leveraging its reputation built over years of deep cultivation in overseas markets, mature production processes, and stable product delivery capabilities. Long-term experience in overseas project delivery, stringent European industry certifications, and an integrated logistics and transportation system collectively form core industry barriers that are difficult to replicate, granting the company absolute initiative in intense market competition. While the offshore wind is strong, hidden reefs remain. While optimistic about the long-term prospects, the growth risks faced by Dajin Heavy Industry also warrant vigilance. The greatest uncertainty stems from geopolitical and international trade risks. Trade barriers, changes in trade policies, and regional geopolitical fluctuations in overseas markets may impact the company's product exports and project cooperation, hindering the normal expansion of overseas business. For instance, on February 3, 2026, the European Commission announced the launch of an in-depth investigation into the operations of Chinese wind power companies in the EU market based on the Foreign Subsidies Regulation (FSR). This means that although Dajin Heavy Industry holds a favorable position in the European market, policy games and trade variables in overseas markets remain a sword of Damocles hanging over export-oriented enterprises. This point is evident from its business structure. According to the prospectus, while the proportion of overseas revenue exceeded 74%, domestic business revenue declined from RMB 2.047 billion to RMB 1.577 billion, with its revenue share dropping from 55.15% to 25.54%. When a company increases its overseas share from 39% to 74% within two years, the market should indeed applaud this speed, but also pay attention to its "endurance capacity." Policy rhythms vary among European countries, and any delay or cancellation of a large project could significantly impact current performance. Intensified industry competition, fierce price wars, and fluctuations in raw material prices may all affect profitability. In summary, Dajin Heavy Industry's Hong Kong listing coincides with the dual window of the company's own rapid performance growth and the global offshore wind industry upcycle. Q1 2026 net profit growth of 88%, over RMB 10 billion in orders on hand, and continuously rising European market share—these fundamental data provide a solid foundation for the Hong Kong issuance. Meanwhile, the rigid constraints of global carbon neutrality, the irreversible trend of Europe's energy transition, and the policy certainty of doubling domestic offshore wind installations during the "15th Five-Year Plan" collectively form the narrative framework for the company's long-term growth. Therefore, for long-term value investors focused on medium to long-term allocation, valuing earnings certainty, and delving into the high-end manufacturing track of new energy, Dajin Heavy Industry, empowered by its Hong Kong listing, is clearly a high-quality target with significant allocation value within the offshore wind power sector. Of course, while recognizing its investment value, it is also essential to focus on four key variables: the pace and price level of overseas order deliveries, trends in gross margin changes, breakthrough progress in the new floating offshore wind business, and the cost optimization effect of its own shipping capacity.
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