Citigroup has issued a research report initiating coverage on Dajin Heavy Industry Co.,Ltd., assigning it a 'Buy' rating. The firm has set a target price of HK$50 based on a discounted cash flow (DCF) valuation model.

The bank cites several key reasons for its positive outlook on the stock. These include robust growth in European offshore wind power installations, with data from WindEurope projecting 34.5 gigawatts of new capacity from 2026 to 2030, which is 2.4 times the volume installed from 2021 to 2025.

Furthermore, the company aims to increase its market share for European offshore wind monopile orders from 30% to 40% by 2026. Citigroup also forecasts that Dajin's net profit will triple between 2025 and 2028.

An additional source of potential upside is identified in the company's shipbuilding operations. Citigroup has selected Dajin Heavy Industry as its top pick within the Chinese wind power equipment sector.

The report attributes recent share price weakness to slower-than-expected new order inflows year-to-date and the relatively high valuation implied by its H-share IPO price. The stock is currently valued at 9 times the forecast 2027 price-to-earnings ratio and 1.4 times price-to-book.

This valuation is considered not high when contrasted with the company's projected 39% compound annual growth rate in earnings per share from 2026 to 2028. It also trades significantly below the average European peer multiples of 17.7 times P/E and 3.7 times P/B.

A major catalyst for the stock is anticipated to be the securing of further new orders in the second half of 2026.