CICC: Maintains CIMC ENRIC (03899) Outperform rating, raises target price to HKD 12.00.

CICC released a research report stating that it maintains CIMC ENRIC's net profit for 2026 at 1.509 billion yuan and introduces a net profit for 2027 for the first time at 1.628 billion yuan. The current stock price corresponds to a P/E ratio of 13.1 times for 2026 and 12.0 times for 2027. It maintains an outperform rating on the industry, but due to the industry valuation center shifting upward, the target price is raised by 33.3% to 12.00 Hong Kong dollars, corresponding to a P/E ratio of 14.9 times for 2026 and 13.7 times for 2027, with an upside potential of 13.7% relative to the current stock price. Key points from CICC are as follows: Company announced 2025 performance In 2025, the company's revenue was 26.326 billion yuan, a year-on-year increase of 6.3%; net profit attributable to parent company was 1.135 billion yuan, a year-on-year increase of 3.7%. In 2025, the revenue from the chemical environmental sector was 2.141 billion yuan with a gross profit margin of 13.0%, and revenue from liquid food was 3.620 billion yuan with a gross profit margin of 21.7%, a year-on-year increase of 0.3%. Significant growth in clean energy revenue, driven by both offshore and onshore In 2025, clean energy revenue was 20.565 billion yuan, a year-on-year increase of 19.7%, with onshore clean energy business revenue at 13.43 billion yuan, a year-on-year increase of 15.1%; offshore clean energy business revenue at 6.41 billion yuan, a year-on-year increase of 37.6%; and hydrogen energy business revenue at 0.72 billion yuan, a year-on-year decrease of 15%. The gross profit margin in 2025 was 12.7%, a year-on-year increase of 0.1%. Stable growth in order backlog, continuous progress in comprehensive service projects In 2025, the company signed a total of 26.29 billion yuan in new orders, with the bank estimating new orders of 6.649 billion yuan in the fourth quarter of 2025; by the end of 2025, the order backlog was 29.75 billion yuan, a year-on-year increase of 5%. The bank believes that this lays a foundation for the company's future performance. In terms of business segments, in 2025, clean energy/chemicals/food signed new orders of 22.23/2.66/1.40 billion yuan, with year-on-year changes of +2%/-11%/-48%, but the new orders for chemicals & food in the fourth quarter of 2025 have increased year-on-year. Meanwhile, the company continues to implement comprehensive service projects, and the bank believes that this will continue to enhance the company's performance. Risk warning: Continued decline in demand for chemical environmental solutions; Business expansion not meeting expectations.