Jinwu Financial News | According to the BOC International Development Research Report, CIMC Enric (03899)'s revenue for the first quarter of 2024 fell about 7% year on year, mainly affected by the 59%/12% year-on-year decline in revenue in the chemical/liquid food sector. Clean energy revenue alone maintained a strong trend of 21% year-on-year increase.
Due to the ideal growth in new orders, overall on-hand orders ($26.9 billion, +42% YoY) and clean energy orders ($20 billion, +71% YoY) continued to break record highs in the first quarter. In the clean energy sector, management expects 8 ships to be delivered this year, and some orders for clean water energy are also scheduled for 2027. The bank believes there is a guarantee for the sector's growth over the next three years.
The bank believes that market concerns about current growth in the chemical and liquid food sectors should be broadly reflected. The clean energy sector should now be more prosperous than expected by the bank, and the downside risk of valuation should be limited. The bank maintained the company's profit forecast and target price of HK$9.04, and maintained its buying rating.