CIMC ENRIC(03899) 中航证券·2024-08-28 10:20Investment Rating - The report maintains a "Buy" rating for CIMC Enric (3899 HK) [1] Core Views - CIMC Enric's clean energy business significantly boosted revenue growth, with new orders growing rapidly and stable operations [1] - The company achieved revenue of RMB 11 48 billion in H1 2024, up 6 7% YoY, while net profit attributable to shareholders was RMB 490 million, down 14 5% YoY [1] - Clean energy revenue increased by 25 1% YoY, with overseas business growing faster than domestic, particularly in waterborne clean energy and hydrogen energy [1] - The company's cumulative new orders reached RMB 16 4 billion in H1 2024, up 29 5% YoY, with clean energy new orders showing significant growth [1] Business Segments Clean Energy - Revenue from clean energy reached RMB 7 876 billion in H1 2024, up 25 1% YoY, with domestic revenue at RMB 5 71 billion, up 17 8% YoY, and overseas revenue at RMB 2 17 billion, up 49 6% YoY [1] - New orders for clean energy totaled RMB 12 92 billion in H1 2024, up 63 3% YoY, with outstanding orders at RMB 22 93 billion, up 70 7% YoY [1] - LNG vehicle cylinder revenue surged 711% YoY to RMB 720 million, with new orders for LNG vehicle cylinders reaching RMB 790 million, up 168 8% YoY [1] - Waterborne clean energy revenue grew 48 9% YoY to RMB 1 77 billion, with overseas revenue up 153 6% YoY [1] - Hydrogen energy revenue increased by 65 2% YoY to RMB 450 million, with new orders up 29 3% YoY [2] Chemical Environment - Chemical environment revenue declined 47 1% YoY to RMB 1 3 billion in H1 2024, with Q2 revenue improving 30 8% QoQ [2] - New orders for chemical environment totaled RMB 1 69 billion in H1 2024, down 26 8% YoY, but Q2 new orders surged 245 4% QoQ [2] Liquid Food - Liquid food revenue grew 14 7% YoY to RMB 2 31 billion in H1 2024, with domestic revenue up 113 9% YoY [3] - Beer revenue increased by 9 5% YoY to RMB 1 71 billion, while non-beer revenue grew 32 7% YoY [3] Financial Data and Valuation - The company's revenue is expected to grow from RMB 27 068 billion in 2024E to RMB 35 425 billion in 2026E, with net profit attributable to shareholders projected to increase from RMB 1 364 billion in 2024E to RMB 1 815 billion in 2026E [5] - The PE ratio is expected to decline from 8 72x in 2024E to 6 56x in 2026E, indicating potential undervaluation [5] Industry Trends - The global LNG bunkering market is expected to grow from 1 million tons in 2023 to 3 000-4 000 million tons by 2030, with significant opportunities in LNG-powered vessels and bunkering stations [2] - The domestic market for LNG-powered inland vessels is projected to reach RMB 30 5 billion, driven by policy support for equipment upgrades [2]