New Stock Preview | Dajin Heavy Industry: From Product Export to Localization Layout A+H Boosts the Upgrade of "One-Stop Solution" Strategy

According to the disclosure by the Hong Kong Stock Exchange on April 8th, Dajin Heavy Industry Co., Ltd. (referred to as Dajin Heavy Industry) (002487.SZ) submitted its listing application to the main board of the Hong Kong Stock Exchange, with Huatai International and CMSC International as its joint sponsors. This is the second sprint following the initial submission in September 2025, and is a crucial step for the company towards the "A+H" dual capital platform after its listing on the Shenzhen Stock Exchange in 2010. The truth behind the doubling of profits: not simply due to "rising quantity and price" According to observation, behind this second listing application after six months is a rather impressive report card: revenue of 6.174 billion yuan in 2025, a year-on-year growth of 63.3%; net profit attributable to shareholders of 1.103 billion yuan, with a year-on-year growth rate of over 130%. The performance growth is particularly outstanding. According to Frost Sullivan data, based on the sales amount of monopiles in the first half of 2025, the company is ranked as the top offshore wind power foundation equipment supplier in the European market, with market share increasing from 18.5% in 2024 to 29.1% in the first half of 2025. According to the same data source, based on sales amount, the company ranked fifth among wind tower suppliers in China with a market share of 2.4% in the first half of 2025, and ranked third with a market share of 4.4% in 2024. The significant increase in profit elasticity compared to revenue elasticity is attributed to the dual optimization of the company's product structure and customer structure. On one hand, the technology content, value per ton, and profit margins of offshore wind power foundation equipment in overseas markets are significantly higher than domestic tower products; on the other hand, the company is upgrading from the traditional Free On Board (FOB) delivery model to Delivery At Place (DAP) model, incorporating transportation, logistics, and port services into the overall solution to gain higher added value and customer stickiness. However, if profits are broken down into finer levels, two easily overlooked structural changes can be observed. Firstly, the increase in the company's gross profit margin is smaller than the increase in net profit. From 2023 to 2025, the company's gross profit margin increased from 23.1% to 31.1%, with a cumulative increase of 8 percentage points over three years; while the net profit margin increased from 9.8% to 17.9% during the same period, an increase of 8.1 percentage points. At a superficial level, the two have improved simultaneously, but observations in the middle years reveal that in 2024, the gross profit margin had already jumped from 23.1% to 29.8%, but the net profit margin only increased from 9.8% to 12.5% during that year, with the growth rates not matching. The reason is that in 2024, the company made a provision of 115 million yuan for impairment losses (3.0% of revenue), while in 2025, this item turned to a positive income of 9.038 million yuan. The fluctuation of just the impairment loss item contributed to an increase of approximately 124 million yuan in profits in 2025 compared to the previous year. Secondly, the significant fluctuation in financial expenses is also worth noting. Financial costs in 2025 were 32.2 million yuan, nearly 5 times higher than the 5.63 million yuan in 2024. The company explained in its prospectus that this was due to an increase in borrowings. By the first half of 2025, the company's borrowing had rapidly risen to over 1.3 billion yuan, while the total borrowing at the end of 2024 was less than 500 million yuan. This means that the high-speed growth in profits in 2025 was achieved against a backdrop of significantly expanded financial leverage. It is worth noting that from 2023 to 2025, the company's overseas business has made significant progress, with the proportion of overseas income to total income increasing significantly from 39.6% to 74.5%, and the market share of monopiles in Europe rising from 18.5% to 29.1%, making it the largest offshore wind power foundation supplier in Europe. In other words, Dajin Heavy Industry has undergone a profound transformation in its business structure - from a domestic wind tower company to an international equipment supplier focused on the global offshore wind market. Billion-dollar orders in hand, clear growth path for the next two years For equipment manufacturing companies, order backlog is the most reliable leading indicator of future income. By the end of 2025, Dajin Heavy Industry had accumulated a total amount of overseas offshore engineering orders in hand exceeding 10 billion yuan, mainly concentrated on deliveries in the next two years. This order size is equivalent to 2.2 times the company's overseas income in 2025, providing extremely high visibility for revenue growth in 2026 and 2027. In terms of order structure, these overseas projects are mostly large-scale foundation equipment contracts for mainstream offshore wind power developers in Europe, with large amounts, high technical standards, and long delivery cycles, naturally possessing high customer stickiness and profit stability. More importantly, the strategic position of offshore wind power in the European energy structure continues to rise. In 2024, the auction volume of offshore wind power in Europe reached a record high, with approved projects totaling 23.2 GW. Frost Sullivan predicts that the compound annual growth rate of new offshore wind power installations in Europe from 2024 to 2030 will be as high as 27.9%, with the potential to reach 11.8 GW of new installations in 2030. This means that Dajin Heavy Industry is facing not just a short-term peak in orders, but a structural growth channel that will last for 5-10 years. At the same time, there has been a long-standing capacity gap in the domestic offshore wind power foundation equipment manufacturing sector in Europe. As the installation of offshore wind power in Europe grows rapidly, driven by policies such as "net zero emissions" and "energy independence", local manufacturers' capacity has been chronically saturated, with capacity expansions and upgrades lagging behind in recent years. As monopiles, jacket foundations, and other basic structures evolve towards large-scale and high-standard manufacturing, the European manufacturing industry is constrained by multiple factors such as land and port resource constraints, shortage of skilled labor, and high costs, leading to consistently inadequate effective capacity. Among the few Chinese manufacturers who have reached high technical standards in the European market, Dajin Heavy Industry, with its stable capacity reserves, advanced manufacturing capabilities, strong delivery efficiency, and accumulated experience in deep-water projects, is increasingly winning high-quality orders and expanding its strategic layout. As one of the first Asian companies to establish supply capabilities in Europe, Dajin Heavy Industry is enjoying the benefits of this mismatch in supply and demand in the form of a "seller's market". The company plans to use part of the funds raised from its Hong Kong IPO for the construction of an assembly base in Europe, further upgrading from "export supply" to "localized production", which will help the company effectively respond to potential trade policy changes and tap into higher value-added local service markets. More importantly, if Dajin Heavy Industry is simply understood as a wind tower manufacturing company, its long-term value will undoubtedly be underestimated. The current business map of the company covers five major areas: research and manufacturing of offshore wind power foundation equipment, long-distance special transport, ship design and construction, new energy development and operation, and operation of wind power hub ports. Its strategic vision is clear and firm: to provide a one-stop solution of "construction + transportation + delivery" to global large-scale offshore wind power developers. In conclusion, Dajin Heavy Industry's growth trajectory over the past three years has proven two things: first, Chinese equipment manufacturing companies are fully capable of establishing a leading position in the high-end European market; second, offshore wind power foundation equipment is a high barrier to entry, high customer stickiness, and long-lasting pricing ability. Looking ahead, with ample orders in hand, continuous capacity expansion, and ongoing upgrades in business models, the company is deploying all three major growth engines. The golden decade of offshore wind power in Europe is just beginning, and Dajin Heavy Industry has firmly occupied the most advantageous position in this race. If the Hong Kong IPO is successfully completed, the company will have more capital ammunition and a broader international stage.