CIMC ENRIC(HK:03899) Ge Long Hui·2026-01-17 05:22Core Viewpoint - The company has made significant breakthroughs in various innovative businesses, leading to an increase in target price and a reaffirmation of the "Buy" rating. The target price has been raised from HKD 8.60 to HKD 12.34, reflecting a potential upside of 13.5% based on a 16.5 times FY26 price-to-earnings ratio [1]. Group 1: Green Methanol Project - The first phase of the Guangdong Zhanjiang green methanol project, with an annual capacity of 50,000 tons, officially commenced production on December 16, 2025. This project is the company's first commercial green methanol initiative and China's first mass-produced bio-methanol project [1]. - The project utilizes low-cost agricultural and forestry waste as raw materials and incorporates self-designed and manufactured equipment, producing methanol for shipping fuel and pharmaceutical applications, meeting various low-carbon green certification requirements [1]. - Shortly after production began, the company provided green methanol supply for the first demonstration refueling at Shenzhen Yantian Port and secured supply for clients such as China Merchants Energy, Sinopec Hong Kong, and China Ship Fuel [1]. Group 2: Aerospace Storage Equipment Production - The company's facilities in Shijiazhuang and Zhangjiagang are involved in the production of aerospace storage equipment, with estimated revenue and orders exceeding RMB 100 million for 2025 [2]. - Key products include liquid oxygen tanks, liquid nitrogen tanks, methane tanks, and high-pressure gas storage equipment, supplied to domestic institutions like China Aerospace Science and Technology Corporation and international commercial aerospace companies [2]. - The company has also delivered carbon fiber aluminum sample bottles for use as boosters on rockets [2]. Group 3: Nuclear Fusion Energy Investment - The company, through its subsidiary CIMC HuanKe, participated in a RMB 1 billion Series A financing round for the nuclear fusion energy company Star Ring Energy [2]. - This financing round was led by state-owned Shanghai Science and Technology Innovation Group and Shanghai Future Industry Fund, with nuclear fusion energy being recognized as a future industry in the "14th Five-Year Plan" [2].