BOC International released a research report stating that maintaining CIMC's “buy” rating (03899), future profits will still depend on the clean energy sector to grow, and the target price will be reduced by 7.94% from $9.82 to HK$9.04.
According to the report, the revenue and gross profit of the clean energy sector increased by 41% and 44% respectively in 2023, which is higher than expected. It is believed that the sector is still growing rapidly. The Group raised the final interest rate by 25%, and the annual dividend ratio increased 8 percentage points year on year to 49%.
The bank expects the Group's profit to compound by about 11% over the next three years, slightly lowering the Group's 2024 earnings per share forecast by 1%. It is also believed that during the year, catalysts are expected to stabilize revenue in the chemical sector, or progress in products or cooperation in the hydrogen energy sector.