Citi raises CIMC ENRIC's target price to 12.5 yuan, strong performance in offshore clean energy business

AASTOCKS
2026.01.16 04:27

CIMC ENRIC (03899.HK) management revealed in a Citigroup research report that driven by strong demand for liquefied natural gas (LNG) bunkering vessels, new offshore clean energy orders and backlog are expected to reach RMB 10 billion and RMB 22 billion respectively by 2025. It is anticipated that offshore clean energy revenue will increase by at least RMB 1 billion in 2026, while net profit margin will improve by 1 to 2 percentage points.

Additionally, management indicated that revenue and orders from the aerospace business will just exceed RMB 100 million in 2025, but are expected to grow strongly in 2026, driven by demand for low Earth orbit satellites and reusable rockets, as well as national policy support. Orders in the chemical business have shown year-on-year growth in the fourth quarter of 2025, indicating that this business is about to reach a turning point after three consecutive years of declining revenue.

The bank has raised its earnings forecasts for 2026 and 2027 by 1% and 2% respectively to reflect the upward revision of clean energy revenue forecasts, with the target price increased from HKD 9.5 to HKD 12.5, maintaining a "Buy" rating

Source: AASTOCKS The copyright of this article belongs to the original author/organization.
The views expressed herein are solely those of the author and do not reflect the stance of the platform. The content is intended for investment reference purposes only and shall not be considered as investment advice. Please contact us if you have any questions or suggestions regarding the content services provided by the platform.