A-share subscription | Xihua Technology (603248.SH) opens subscription to provide full-process services for special components for wind power gearboxes

The Zhitong Finance App learned that on December 12, Xihua Technology (603248.SH) began the subscription. The issuance price was 10.10 yuan/share. The maximum subscription price was 21,000 shares, with a price-earnings ratio of 33.12 times. It belongs to the Shanghai Stock Exchange, and Cathay Pacific Haitong Securities is its sponsor.

According to the prospectus, Xihua Technology is mainly engaged in R&D, manufacturing and sales of special components for large-scale high-end equipment. The product structure is mainly specialized components for wind power gearboxes, supplemented by thick special parts for injection molding machines. It is a large-scale high-end equipment component manufacturer with leading global industry, reliable quality and excellent technology. The company's products are mainly used in the field of large-scale wind power equipment and injection molding machines. The company is one of the few domestic enterprises that can provide full-process services for special components for wind power gearboxes.

From 2022 to 2024, the overall sales volume of the company's main products showed an upward trend, and the main business revenue increased steadily, and sales increased from 77,744.88 tons to 91,397.22 tons. From 2022 to 2024, the company's global market share in the casting segment for special components for wind power gearboxes was about 20%.

According to data, Xihua Technology is a long-term main supplier of large-scale special components for leading global wind power gearbox manufacturers such as Nangaoji, Flender, and ZF, and thick special parts for Haitian molding machines, the world's leading injection molding machine leader. Most major customers have cooperated with the company for more than ten years, and have gradually established stable cooperative relationships with high-quality customers with strong competitiveness and high market position in the wind power gearbox industry such as Delijia and CRRC.

According to the Global Wind Energy Council (GWEC) data and Delijia's public disclosure data, in the global market, the top global companies in the wind power gearbox industry are Nangaoqi, Flanders, Delica, and ZF. The above four companies account for more than 70% of the global market share of the global wind power gearbox industry. Among them, the global market share of Nangaoqi wind power gearbox products has continued to exceed 30% for many years; in the domestic market, the main local wind power gearbox manufacturers are Nangaoji, Delijia, etc., with a market share close to 70% of the domestic wind power gearbox industry. Domestic teeth The market share is close to 50%.

On the financial side, in 2022, 2023 and 2024, the company achieved operating income of approximately RMB 942 million, RMB 908 million and RMB 955 million respectively; net profit for the same period was approximately RMB 184 million, RMB 177 million, and RMB 142 million respectively.

Xihua Technology predicts that business performance from January to September 2025 will be good, with sales, revenue and net profit showing a year-on-year growth trend. The main reason is that China's wind power project bid scale has remained high since 2024. In particular, in 2024, China's wind power mainframe manufacturer's bid volume reached 220.64 GW, an increase of 89.41% year on year, while orders and changes in various parts of the domestic wind power industry chain this year were greatly affected by the number of wind power projects won in the previous year. Demand for the wind power industry is expected to be strong in 2025.