Zhi Tong Cai Jing·2025-08-28 07:43Core Viewpoint - Dongfang Electric (600875) has seen a stock price increase of over 5%, currently trading at 17.96 HKD, with a transaction volume of 296 million HKD. The company is set to hold a board meeting to review and approve its unaudited interim results for the six months ending June 30, 2025. UBS has initiated coverage on Dongfang Electric with a "Buy" rating and a target price of 23.6 HKD, forecasting an average annual growth rate of 27% in earnings per share from 2024 to 2028, compared to 11% from 2020 to 2024 [1]. Group 1 - Dongfang Electric's stock price increased by 5.03% to 17.96 HKD, with a trading volume of 296 million HKD [1]. - The company will hold a board meeting to review its interim results for the six months ending June 30, 2025 [1]. - UBS has set a target price of 23.6 HKD for Dongfang Electric, predicting a 27% annual growth rate in earnings per share from 2024 to 2028 [1]. Group 2 - UBS expects a shift from one-time hardware sales to a service model for Dongfang Electric, which could significantly enhance profitability and valuation [1]. - The company is focusing on maintenance services, which have a gross margin four times higher than equipment sales [1]. - The projected compound annual growth rate for maintenance service gross profit from 2025 to 2028 is estimated at 25%, contributing 14 percentage points to annual earnings growth [1].