Citi: Maintains "Buy" rating on CIMC ENRIC (03899), target price HK$9.5

Citi released a research report maintaining the target price of HK$9.5 and a "Buy" rating on CIMC ENRIC (03899). The bank noted that it recently held exchanges with CIMC ENRIC's management, and compared with the first-half results announcement in August this year, management provided more quantitative medium- to long-term targets, especially development plans in the offshore clean energy and integrated services sectors, with an overall positive view. The report mentioned that management expects shipbuilding revenue to increase from approximately RMB 6.4 billion in 2025 to RMB 7.5-8 billion in 2026, and to reach RMB 10 billion around 2028, with net profit margin rising from approximately 5% in 2025 to approximately 7%/8%-10% in the first half/medium term of 2026; the shipyard facility plan will continue until mid-2029, and there is currently an order backlog of 50 vessels. The order structure is being upgraded from the low-value bulk carrier orders accepted in the early part of the cycle; the coke oven gas project is becoming an important source of recurring revenue, with project-level net profit margin exceeding 12%, internal rate of return exceeding 15%, and utilization rate exceeding 80%.