Citigroup: CIMC ENRIC (03899) target price raised to 12.5 Hong Kong dollars Strong growth in offshore clean energy business.

Citigroup released a research report stating that CIMC ENRIC (03899) 2026 and 2027 profit forecasts have been raised by 1% and 2% respectively, to reflect the increase in clean energy revenue forecasts. The target price has been raised from 9.5 Hong Kong dollars to 12.5 Hong Kong dollars, maintaining a "buy" rating. CIMC ENRIC management revealed that driven by strong demand for liquefied natural gas (LNG) bunkering vessels, new offshore clean energy orders and backlog for 2025 reached 10 billion and 22 billion yuan respectively. It is expected that offshore clean energy revenue will increase by at least 1 billion yuan in 2026, while the net profit margin will improve by 1 to 2 percentage points. In addition, management pointed out that the revenue and orders for the aerospace business in 2025 just exceeded 1 billion yuan, but it is expected to grow strongly in 2026 due to demand for low Earth orbit satellites and reusable rockets, as well as national policy support. Chemical business orders in the fourth quarter of 2025 have seen a year-on-year increase, indicating that after three consecutive years of declining revenue, this business is about to turn around.