Core Viewpoint - The report highlights Delijia's specialization in wind power gearboxes, indicating significant growth potential following its recent financing and production expansion [1] Company Overview - Delijia, established in 2017, specializes in wind power main gearboxes (gear reducers) and currently has a production capacity of approximately 4,000 units, making it the second-largest supplier in China after Nankai Gear [1] - The company achieved a net profit attributable to shareholders of 630 million yuan in Q1-Q3 2025, representing a year-on-year growth of 65.0% [1] Financial Performance - Delijia is set to be listed on the Shanghai Stock Exchange on November 7, 2025, with a financing amount of 1.87 billion yuan, aimed at expanding its gearbox production capacity by an additional 1,800 units [1] - Following the expansion, the company is expected to further increase its market share and enter a phase of rapid growth in revenue and net profit from 2025 to 2027 [1] Industry Outlook - The domestic wind power industry is experiencing a favorable cycle, suggesting that the gearbox market will continue to grow [1] - Delijia's market position is solid, and with the financing and production expansion, the company is likely to see sustained profitability and market share growth [1]

Investment Rating - The report assigns a "Buy" rating for the company, Deleijia (603092), marking its first coverage [2]. Core Insights - Deleijia is the second-largest wind power gearbox supplier in China, with a market share of 10.4% globally and 16.2% domestically as of 2024. The company has established strong ties with key clients such as Goldwind Technology and SANY Heavy Energy, with over 90% of its revenue coming from its top five clients [5][14]. - The wind power gearbox industry is experiencing significant growth, driven by increased domestic demand and favorable policies. The company has seen a 65% year-on-year increase in net profit for the first three quarters of 2025, reaching 630 million yuan [5][14]. - The report highlights the company's competitive advantages, including its leading profitability in the industry, with a gross margin of 25.4% and a net margin of 15.5% in the first half of 2025, significantly higher than its competitors [5][38]. Summary by Sections Company Overview and Market Positioning - Deleijia specializes in wind power gearboxes and has been operational since 2017. The company has expanded its production capacity to approximately 4,000 units, making it the second-largest supplier in China [5][15]. - The company went public on November 7, 2025, raising 1.87 billion yuan to fund the expansion of its production capacity by 1,800 units [17][19]. Supply and Demand Dynamics in the Wind Power Gearbox Industry - The domestic wind power demand is expected to surge, with a projected annual average of 140 GW during the 14th Five-Year Plan period, leading to a significant increase in the gearbox market size, estimated at 28.6 billion yuan [5][50][70]. - The report notes that the market for wind power gearboxes is highly concentrated, with the top five suppliers holding a combined market share of 76.5% as of 2024 [71]. Competitive Advantages and Performance Elasticity - Deleijia's strong client relationships and its focus on cost reduction through economies of scale have resulted in superior profitability compared to other gearbox manufacturers [5][38]. - The company has maintained a high capacity utilization rate and has seen a significant increase in sales volume, with a 66.4% year-on-year revenue growth in the first three quarters of 2025 [29][38]. Financial Projections and Investment Rating - The report forecasts that Deleijia's revenue will grow from 5.14 billion yuan in 2025 to 8.28 billion yuan in 2027, with corresponding net profits expected to reach 1.39 billion yuan by 2027 [6][7]. - The company is projected to maintain a strong growth trajectory, supported by its market position and the expanding wind power sector [6][47].