JP Morgan raises CIMC ENRIC's target price to 12 Hong Kong dollars, expecting new businesses to start contributing to profits.

JPMorgan Chase released a research report stating that it has raised the target price of CIMC ENRIC (03899) from 9 Hong Kong dollars to 12 Hong Kong dollars, maintaining a "buy" rating. This adjustment is based on an increase in profit forecast for the fiscal years 2025 to 2028 by 3%, 10%, 14%, and 16%, respectively, as well as an increase in the target valuation multiple from 11 times to 13.5 times. The bank believes that the company continues to demonstrate strong execution in the fields of green methanol, coke oven gas, and shipbuilding, and expects these sectors to contribute 32%, 40%, and 56% of net profits respectively in the years 2025 to 2027. At the same time, the drag on performance from traditional non-clean energy businesses is expected to decrease in 2026, and an improvement in revenue structure will also increase gross profit margin. Overall, these factors will support a compound annual growth rate of 20% in profit for the company from 2025 to 2028.