UBS Raises CIMC Enric Target to HKD15, Cuts Earnings Outlook

Edgen Stock·Mar 26 2026, 07:00

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Key Takeaways

UBS delivered a mixed outlook for CIMC Enric, raising its immediate price target while simultaneously lowering long-term earnings forecasts. The bank's analysis highlights strong growth in the clean energy segment, which is being offset by significant declines in the company's chemical and liquid food divisions.

Price Target Increased: UBS lifted its target price for CIMC Enric to HKD15 from HKD14.7 and maintained its 'Buy' rating.
Divergent Business Performance: The clean energy segment is projected to drive growth with a 20% revenue increase in 2025, while the chemical and liquid food businesses face declines of 31% and 19%, respectively.
Future Earnings Trimmed: The bank reduced its earnings forecasts for the company for the years 2026 to 2028 by between 4% and 7%, signaling caution on long-term profitability.

UBS Lifts Target to HKD15 But Slashes Earnings Forecasts by up to 7%

In a conflicting assessment, UBS raised its price target for CIMC Enric (03899.HK) to HKD15 from HKD14.7, reaffirming its 'Buy' rating on the stock. This near-term optimism, however, was tempered by a more cautious long-term view, as the bank cut its earnings forecasts for the company for 2026 through 2028 by 4% to 7%. The revision reflects a complex picture of the company's underlying business segments, where strength in one area is being counteracted by weakness elsewhere.

Clean Energy's 20% Growth Fails to Offset Chemical Segment's 31% Decline

The primary driver for CIMC Enric's growth is its clean energy business, which is projected to see revenues climb 20% year-on-year to RMB20.6 billion in 2025. Within this unit, the offshore clean energy business achieved a record high, with revenue growing 38% to RMB6.4 billion. However, this robust performance is undermined by significant headwinds in other divisions. The chemical and environmental business revenue is expected to fall 31% to RMB2.1 billion, hurt by weakness in the global chemical industry. Similarly, the liquid food business is anticipated to shrink by 19% to RMB3.6 billion as customers adopt a more cautious investment strategy because of global trade uncertainties.