(Yicai) Nov. 24 -- Dajin Heavy Industry’s shares jumped after the Chinese supplier of offshore wind turbine foundations said it had received a CNY1.3 billion (USD188 million) order from a European client and unveiled plans to build two new onshore wind farms.

Dajin Heavy [SHE: 002487] closed up 5.9 percent at CNY48.74 (USD6.86) a share in Shenzhen today, after soaring by as much as 9.7 percent in morning trading. The stock has climbed 138 percent since the end of last year.

Dajin Heavy has signed an exclusive contract to supply transition pieces to an offshore wind farm in Europe until the end of 2027 and provide one-stop services for the construction, transport, storage, and assembly of the structural parts, the firm announced late on Nov. 21. The client is one of the world's leading energy firms, Dajin Heavy said without disclosing its name.

The deal is equivalent to about 35 percent of the Beijing-based company’s audited operating revenue in fiscal 2024, it pointed out.

Transition pieces are a key steel structural component that connect a wind turbine’s tower with its foundations and also provide auxiliary functions for operation and maintenance of the turbine.

In a separate statement released the same day, Dajin Heavy revealed it plans to invest a total of CNY4.4 billion to build a 700-megawatt onshore wind power project in the Caofeidian Industrial Zone in Tangshan and a 250-MW onshore wind farm in the city's Fengnan district.

The construction period of the Caofeidian project is 12 months, while that of the Fengnan project is 18 months. Both will have an operational period of 20 years.

Half of the power generated by the Caofeidian wind farm will be prioritized for grid operators, with a pre-tax internal rate of return of about 17.1 percent. The remaining half will be sold based on a commercial model, with a pre-tax internal rate of return of around 13.3 percent.

The pre-tax internal rate of return for the Fengnan wind farm will likely be around 11.8 percent.

Completion of these wind farms will more than double Dajin Heavy's wind power business, as the total installed capacity of the farms the company has already built and put into operation is only 500 MW.

The best-known industrial enterprise located in the Caofeidian Industrial Zone is Shougang Jingtang United Iron and Steel, which relocated from Beijing to meet the environmental requirements of the 2008 Summer Olympics.

Dajin Heavy is investing CNY7.5 billion to build an offshore wind equipment export production base in the Caofeidian Industrial Zone, with some facilities already in the trial stage.

Editor: Futura Costaglione