Citi published a report covering Daikin Heavy Industries for the first time, giving it a “buy” rating, based on a discounted cash flow valuation, with a target price of HK$50, and listed it as the preferred stock in China's wind power equipment sector. Reasons why the bank is optimistic about the stock include strong growth in European offshore wind power installations; Daikin Heavy Industries aims to increase its market share of European offshore wind single pile orders from 30% to 40% in 2026; predicts a tripling of net profit from 2025 to 2028; and the shipbuilding business brings further upward room. The current valuation of Daikin Heavy Industries is 9 times the predicted price-earnings ratio and 1.4 times the market-account ratio in 2027. Compared with its 2026-2028 compound annual growth rate of 39% in earnings per share, the valuation is not very high, and it is far lower than the 17.7 times price-earnings ratio and 3.7 times market-account ratio of its European peers. Major catalysts include further new orders in the second half of 2026.

Zhitongcaijing · 2d ago
Citi published a report covering Daikin Heavy Industries for the first time, giving it a “buy” rating, based on a discounted cash flow valuation, with a target price of HK$50, and listed it as the preferred stock in China's wind power equipment sector. Reasons why the bank is optimistic about the stock include strong growth in European offshore wind power installations; Daikin Heavy Industries aims to increase its market share of European offshore wind single pile orders from 30% to 40% in 2026; predicts a tripling of net profit from 2025 to 2028; and the shipbuilding business brings further upward room. The current valuation of Daikin Heavy Industries is 9 times the predicted price-earnings ratio and 1.4 times the market-account ratio in 2027. Compared with its 2026-2028 compound annual growth rate of 39% in earnings per share, the valuation is not very high, and it is far lower than the 17.7 times price-earnings ratio and 3.7 times market-account ratio of its European peers. Major catalysts include further new orders in the second half of 2026.