More than half of Daikin Heavy Industries' French projects were delivered, and the proportion of export revenue rose to 44%

Yangtze River Business Daily News ● Yangtze River Business Daily reporter Pan Ruidong

Daikin Heavy Industries (002487. SZ) continues to increase its overseas business.

Before the market on April 8, Daikin Heavy Industries announced that recently, Daikin Heavy Industries exclusively supplied the second batch of 20 monopiles for the Noy-lles D'Yeuet Noirmoutier offshore wind farm in France in Penglai Dajin Port, and has delivered a total of 31 monopiles of the project, with a shipment volume of more than 50%.

The Yangtze River Business Daily reporter noted that in recent years, Daikin Heavy Industries has continued to increase the European tower pile market, and previously won the bid for the Moray West offshore wind power tower project in the United Kingdom. The company's overseas sales have increased significantly, and the export offshore revenue has shown explosive growth. According to the data, in the first half of 2023, the company's export operating income will be 911 million yuan, exceeding the whole year of 2022, and the proportion of revenue will increase from 16.41% in 2022 to 44.18%, a significant increase.

The overseas offshore business has entered a period of accelerated advancement

According to the announcement, Daikin Heavy Industries won the bid for the NOY-lles D'Yeuet Noirmoutier offshore wind farm project in France in October 2022, and the company's wholly-owned subsidiary, Penglai Daikin Marine Heavy Industries Co., Ltd., exclusively built and delivered 61 monopiles for the project.

Up to now, Daikin Heavy Industries has delivered a total of 31 monopile products of the project, with a shipment volume of more than 50%, and the subsequent batches of products are being produced at Daikin Heavy Industries Penglai Offshore Base in accordance with the production schedule, and are expected to be shipped within the year.

The offshore wind farm is the second offshore wind infrastructure product project delivered by Daikin Heavy Industries to Europe following the completion of the Moray West offshore wind farm project in the United Kingdom.

Back to the announcement, in October 2022, Daikin Heavy Industries disclosed the above-mentioned winning contract, but did not separately disclose the contract amount, and the total amount of the above-mentioned project and the Moray West offshore wind power sea tower project in the United Kingdom is about 860 million yuan.

Daikin Heavy Industries said in the announcement that in 2024, the company's overseas offshore business will enter a period of accelerated advancement, and multiple projects will be carried out at the same time to form a rolling closed loop of bidding, signing, production and delivery. According to the data, at present, Daikin Heavy Industries has three bases for overseas business, Penglai offshore base has been fully upgraded to a world-class wind power offshore base, and Panjin and Tangshan offshore bases are under active construction, adding to the layout for the further growth of overseas business.

The Yangtze River Business Daily reporter noticed that since last year, Daikin Heavy Industries' foreign sales have increased significantly. Flush data shows that in 2022, the company's export operating income will be 838 million yuan, accounting for only 16.41% of revenue, far lower than the 83.59% of domestic operating income.

In the first half of 2023, Daikin Heavy Industries' export operating income will be 911 million yuan, and its half-year sales will exceed that of 2022, and the proportion of revenue will increase to 44.18%. In the third quarter report of 2023, Daikin Heavy Industries disclosed that the company's overseas business revenue increased by 71.50% year-on-year. Among them, the export offshore revenue showed explosive growth, with a year-on-year increase of 5578.23%, and the revenue scale and profitability of the company's export business far exceeded that of the industry.

The successful shipment of the NOY-lles D'Yeuet Noirmoutier offshore wind farm monopile project in France will have a positive impact on the company's current operating performance.

Revenue has increased by more than 4 times in four years

According to the data, Daikin Heavy Industries is a leading domestic wind power tower and monopile manufacturing enterprise, the first domestic enterprise to export wind power offshore products to Europe in large quantities, and the only super-large monopile supplier outside Europe.

In October 2010, Daikin Heavy Industries landed on the Shenzhen Stock Exchange, and the company's operating income increased by 47.97% in the year of listing. However, next, Daikin Heavy Industries' revenue scale shrank for four consecutive years, from 615 million yuan in 2010 to 308 million yuan in 2014, nearly halved.

In 2015, Daikin Heavy Industries achieved operating income of 796 million yuan, a year-on-year increase of 159%. Behind the growth of performance, Daikin Heavy Industries Shandong Penglai offshore wind power production base began to undertake business, and in the same year, the company realized the export of wind power products.

From 2016 to 2018, the company's operating income decreased slightly after two consecutive increases. In 2019, the company ushered in the great development of the wind power industry. According to public information, 2019 is a year of rapid growth for the wind power industry. According to the National Energy Administration, in 2019, 25.74 million kilowatts of new grid-connected wind power were installed, including 23.76 million kilowatts of onshore wind power and 1.98 million kilowatts of offshore wind power.

Also since 2019, Daikin Heavy Industries' revenue has continued to grow, and from 2019 to 2022, the company's operating income has increased from 1.687 billion yuan to 5.106 billion yuan. Compared with the revenue level of 970 million yuan in 2018, the company's operating income has increased by more than 426% in the past four years.

It is worth mentioning that the company's revenue increased sharply, which was accompanied by the development of the European market. Huatai Securities said in a research report that Daikin Heavy Industries won the bid for European offshore wind power projects one after another from 2022 to 2023, with a scale of nearly 10 billion yuan. According to the company's disclosure on the official public account in June 2023, the company's existing production capacity is 1 million tons, and combined with the base under construction, it is expected that the company's total production capacity of 2.4 million tons will be gradually put into operation in the next 2-3 years.

The Yangtze River Business Daily reporter noticed that in addition to the wind power industry, Daikin Heavy Industries is also increasing its photovoltaic projects. At the end of January 2024, the company announced that it will build a 250MW fishery-PV complementary photovoltaic project in Caofeidian, Tangshan, including two sub-projects: Daikin Heavy Industries Shilihai 125,000 kW Fishery-PV Complementary Guarantee Photovoltaic Project and Daikin Heavy Industries Shilihai 125,000 kW Fishery-PV Complementary Market-oriented Photovoltaic Project, with a total investment of no more than 1.2 billion yuan.

The company has also laid out the new energy equipment manufacturing sector and the new energy investment and development sector, but the business revenue of these two areas is still small. In the past four and a half years, the company's wind power towers have accounted for more than 95% of total revenue. Flush data shows that in the first half of 2023, Daikin Heavy Industries' new energy power generation will only achieve revenue of 44.6463 million yuan, accounting for 2.17%, in addition, other business revenue will be 22.1106 million yuan, accounting for 1.07%.