Citibank: Maintains CIMC's (03899) “Buy” rating with a target price of HK$9.5

The Zhitong Finance App learned that Citi released a research report stating that it maintains the CIMC Enric (03899) target price of HK$9.5 and the “buy” rating.

The bank pointed out that in recent exchanges with CIMC Enric's management, compared to when the results for the first half of August this year were announced, the management provided more about medium- to long-term quantitative goals, particularly development plans in the field of offshore clean energy and integrated services. The overall view was positive.

The report mentioned that management expects shipbuilding revenue to increase from about 6.4 billion yuan in 2025 to 75-8 billion yuan in 2026, and reach 10 billion yuan around 2028, and the net profit margin will increase from about 5% in 2025 to about 7%/8% -10% in the first half of 2026; the shipyard facility plan will continue until mid-2029, and there is currently a backlog of orders for 50 ships. The order structure is being upgraded from low-value bulk carrier orders accepted early in the cycle; the coke oven gas project is becoming an important source of recurring revenue. The net profit margin at the project level exceeds 12%, the internal rate of return exceeds 15%, and the utilization rate exceeds 80%.