A-share subscription | Xihua Technology (603248.SH) opens subscription, providing full-process services for wind turbine gearbox components.

On December 12th, Xihua Technology (603248.SH) started the subscription, with an issue price of 10.10 yuan per share and a subscription limit of 21,000 shares. The P/E ratio is 33.12 times, and it is listed on the Shanghai Stock Exchange, with Guotai Haitong as its sponsor. According to the prospectus, Xihua Technology is mainly engaged in the research, development, manufacturing, and sales of large-scale high-end equipment-specific components. The product structure is mainly wind power gearboxes and injection molding machine components, making it a global industry-leading manufacturer of large-scale high-end equipment-specific components known for quality, reliability, and superior technology. The company's products are mainly used in the fields of large-scale wind power equipment and injection molding machines. The company is one of the few in China that provides full-process services for wind power gearbox special parts. From 2022 to 2024, the overall sales of the company's main products are on the increase, with main business revenue steadily increasing, from 77,744.88 tons to 91,397.22 tons. From 2022 to 2024, the company's market share in the global market in the casting sub-field of wind power gearbox special parts is about 20%. Data shows that Xihua Technology is a long-term main supplier for global leading wind power gearbox manufacturers such as Nan Gaochi, Flender, and ZF, as well as a major partner for the global leading large injection molding machine, Haitian Plastics Machinery. The company has established stable cooperation relationships with most major customers for over ten years and gradually established stable cooperation with quality customers in the wind power gearbox industry such as Delijia Transmission Technology and CRRC. Based on data from the Global Wind Energy Council (GWEC) and public disclosure information from Delijia Transmission Technology, Nan Gaochi, Flender, Delijia Transmission Technology, and ZF are among the global leading companies in the wind power gearbox industry, with these four companies holding a market share of over 70% in the global wind power gearbox industry. Nan Gaochi's global market share of wind power gearbox products has consistently exceeded 30% for many years. In the domestic market, the major domestic wind power gearbox manufacturers are Nan Gaochi, Delijia Transmission Technology, and others, with Nan Gaochi and Delijia Transmission Technology holding a market share of nearly 70% in the domestic wind power gearbox industry, with Nan Gaochi's domestic market share close to 50%. In terms of finances, in 2022, 2023, and 2024, the company achieved operating revenue of approximately 942 million yuan, 908 million yuan, and 955 million yuan respectively; and net profits of approximately 184 million yuan, 177 million yuan, and 142 million yuan respectively. Xihua Technology predicts that its business performance for January to September 2025 will be good, with sales, revenue, and net profit showing a trend of growth year-on-year. This is mainly due to the high level of wind power project bidding scale since 2024, especially with Chinese wind power main manufacturers bidding for a high volume of 220.64 GW in 2024, an increase of 89.41% compared to the previous year. The domestic wind power industry chain orders and changes in various links are largely influenced by the bidding scale of the previous year's wind power projects, and the demand for the wind power industry in 2025 is expected to be strong.