(Yicai) Nov. 24 -- Shares of Dajin Heavy Industry jumped after the Chinese supplier of offshore wind turbine foundations said it 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) in Shenzhen today, after soaring as much as 9.7 percent in morning trading.

Dajin Heavy signed an exclusive contract with a European client to supply transition pieces to an offshore wind farm in Europe until the end of 2027 and provide one-stop services for the construction, transportation, storage, and assembly of the structural parts, the Beijing-based firm announced late on Nov. 21, noting that the contract value is about 35 percent of its audited operating revenue in fiscal 2024.

Transition pieces are a key steel structural component that connects the upper tower of a wind turbine to the lower foundation. They also have other functions, such as assisting in the operation and maintenance of wind turbines.

Dajin Heavy did not disclose the name of the client but said it is one of the world's leading energy enterprises.

In a separate statement also released on Nov. 21, 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 after completion.

Half of the power generated by the Caofeidian wind farm will be prioritized for grid enterprises, 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 of the Fengnan wind farm will likely be around 11.8 percent.

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

The most renowned 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 production facilities already in the trial production stage.

Editor: Futura Costaglione