Ge Long Hui·2026-02-04 13:10Group 1 - Citi has downgraded Shanghai Electric's net profit forecasts for 2022 and 2023 by 67% and 37% respectively, due to increased costs of raw materials, components, and logistics amid supply chain disruptions [1] - The target price for Shanghai Electric's H-shares has been reduced from HKD 3.4 to HKD 2.6, reflecting a projected price-to-book ratio of 0.4 times for this year, while maintaining a "Buy" rating [1] - Despite a disappointing performance in 2021, it is expected that the negative impacts from the Dubai project losses and previous management misconduct will not significantly affect future earnings, with profitability anticipated to recover by 2023 [1] Group 2 - Citi recommends increasing holdings in Shanghai Electric over a 12-month period while suggesting a reduction in holdings of Dongfang Electric [1]