UBS: Raises target price of HARBIN ELECTRIC (01133) to 18 Hong Kong dollars, rating "buy"

UBS released a research report stating that they have included HARBIN ELECTRIC (01133) in their key recommended list for the Asia-Pacific region, with a "buy" rating. They have raised the target price from 9.6 Hong Kong dollars to 18 Hong Kong dollars, and have raised their earnings per share forecast for 2025 to 2027 by 27% to 31%. The bank expects that the compound annual growth rate of earnings per share for HARBIN ELECTRIC from 2024 to 2029 will be 27%. They predict that the dividend yield for 2025 to 2027 will be 5.9%, 8.7%, and 10.2% respectively, with dividend payout ratios forecasted to increase from 34%, 35%, and 36% to 41%, 50%, and 50%. They estimate that revenue growth will accelerate from 2025 to 2027, with increases of 5%, 5%, and 7% respectively. Although their gross profit margin forecast remains largely unchanged, improvements in revenue and enhanced cost control have led the bank to raise their net profit margin forecast from 4% in 2024 to 6% to 7% for 2025 to 2027. Additionally, the bank believes that the stock has the opportunity to be included as a target for the Southbound Stock Connect, and the strong approval cycle for nuclear power in mainland China may bring further upside potential.