CICC: Raises CIMC Enric's target price to HK$8.4, expects core annual profit to remain flat.

Guosen Securities International issued a research report stating that CIMC Enric's first-half profit increased by 15.6% year-on-year to 560 million yuan, in line with expectations. The order backlog remained flat year-on-year. In the second quarter, the company's new orders for clean energy dropped by 31% year-on-year, due to global trade uncertainty and customer reluctance to make decisions. New orders and order backlog in the chemical or liquid food sector also declined year-on-year in the second quarter. The bank lowered the company's core profit forecast for this year and next year by 5.8% and 5% respectively, and expects core profit for the whole year to remain flat year-on-year. The target price is raised to 8.4 Hong Kong dollars, with a "buy" rating.