Core Viewpoint - UBS has included Harbin Electric (01133) in its key recommendations for the Asia-Pacific region, upgrading its rating to "Buy" and raising the target price from HKD 9.6 to HKD 18 [1] Financial Projections - UBS has increased its earnings per share (EPS) forecasts for Harbin Electric for the years 2025 to 2027 by 27% to 31% [1] - The expected compound annual growth rate (CAGR) for EPS from 2024 to 2029 is projected to be 27% [1] - Forecasted dividend yields for 2025 to 2027 are 5.9%, 8.7%, and 10.2%, with payout ratios adjusted from 34%, 35%, and 36% to 41%, 50%, and 50% respectively [1] Revenue and Profitability - Revenue growth is expected to accelerate, with increases of 5%, 5%, and 7% for the years 2025 to 2027 [1] - Despite maintaining the gross margin forecasts, the net profit margin estimates have been raised from 4% in 2024 to 6% to 7% for 2025 to 2027 due to improved revenue and enhanced cost control [1] Market Opportunities - There is potential for Harbin Electric's shares to be included in the Southbound Trading list, alongside a strong approval cycle for nuclear power projects in mainland China, which may provide further upside [1]

Core Viewpoint - Harbin Electric (01133) has seen its stock price increase by over 360% year-to-date, with a current rise of 13.69% to HKD 10.55, supported by a report from UBS recommending the stock as a "buy" and raising its target price from HKD 9.6 to HKD 18 [1] Financial Performance - UBS has adjusted its earnings per share forecast for Harbin Electric for the years 2025 to 2027 upwards by 27% to 31% [1] - The net profit margin forecast has been increased from 4% in 2024 to a range of 6% to 7% for 2025 to 2027, driven by improved revenue and enhanced cost control [1] Market Position - The stock is expected to have the potential to be included in the Southbound Trading Stock Connect, which could provide additional upward momentum [1] - The ongoing strong approval cycle for nuclear power projects in mainland China is anticipated to further enhance growth opportunities for the company [1]