HK Stock Market Move | Dongfang Electric Corporation (01072) rose more than 13% against the market trend. Citigroup stated that the company has obtained orders for 20 50MW gas turbines.

Dongfang Electric Corporation (01072) rose more than 13% against the market trend. As of the time of writing, it has risen by 9.78%, reaching 37.48 Hong Kong dollars, with a trading volume of 1.007 billion Hong Kong dollars. Citigroup released a research report stating that Dongfang Electric Corporation has achieved a key strategic breakthrough. The company has received a milestone order of 20 sets of 50MW gas turbine generator units from a Canadian customer, with a unit price of 200 million RMB and a gross profit margin of 40-50%. The report indicates that based on the expected revenue from gas turbine generator units, the net profit forecast for Dongfang Electric Corporation for the fiscal year 2026-2027 has been raised by 14-21%. The target price has been raised by 105% from 22 Hong Kong dollars to 45 Hong Kong dollars. Soochow previously released a research report stating that the company's first F-class 50MW heavy-duty gas turbine (G50) was successfully put into operation in 23. Till now, the company has two self-control models, G15 and G50. In 25, 3 G50s were exported to Kazakhstan, and we estimate the value of a single unit of the complete machine to be around 300 million RMB, with a gross profit margin expected to exceed 30%, significantly higher than traditional joint venture products. With the further improvement of the company's industrial chain and global after-sales service system, there is an opportunity to accelerate the pace of going global by seizing the opportunity to "grab the market for gas turbines" with AIDC, entering high-end markets such as Europe, the Middle East, and the United States, and achieving a double increase in both quantity and profit in the gas turbine business.