J.P. Morgan: Initiates Dajin Heavy Industry (01081) with "Overweight" rating, target price HK$43

J.P. Morgan released a research report initiating coverage of Dajin Heavy Industry (01081) with an "Overweight" rating and a target price of HK$43. The bank noted that Dajin Heavy Industry is a globally leading supplier of offshore wind foundations. Although earnings forecast downgrades have caused the share price to fall sharply since mid-2026, the company's earnings are expected to rebound in 2027 as currency and logistics headwinds fade and European order growth reaccelerates. J.P. Morgan pointed out that positive catalysts have also emerged over the past two weeks, including Germany's introduction of a contract-for-difference mechanism and the grid connection of the Waterekke offshore project, prompting investors to re-examine the stock, which has rebounded about 20% since September 9. The bank believes the current valuation is attractive and poised to benefit from a multi-year upcycle in European offshore wind construction.