HK Stock Market Move | CIMC ENRIC (03899) rose more than 7% at one point, and recent breakthroughs in multiple innovative businesses have led to a favorable outlook on the company's valuation upgrade by institutions.

CIMC ENRIC (03899) once surged by over 7%, but as of the time of writing, it has risen by 4.83%, to 11.28 Hong Kong dollars, with a trading volume of 159 million Hong Kong dollars. On the news front, a report from Zhongtai International pointed out that the company's various innovative businesses have recently made breakthroughs, such as the commissioning of the first phase of the Guangdong Zhanjiang Green Methanol project; an aerospace storage equipment income and in-hand order totaling over 100 million yuan by 2025; and investments in nuclear fusion energy. The bank believes that although the short-term profitability of these related businesses may not be significant, they can help drive the company's long-term growth and support a higher valuation. The bank temporarily maintains the shareholders' net profit forecast for FY25-27, but does not exclude the possibility of raising it after the release of future performance/related news. Comparing the valuation of energy equipment peers involved in innovative businesses, the bank has raised the company's target price from 8.60 Hong Kong dollars to 12.34 Hong Kong dollars, corresponding to a 16.5 times FY26 price-to-earnings ratio and a 13.5% upside potential. It reiterates a "buy" rating.