Group 1 - Harbin Electric's stock has increased nearly 7%, with a year-to-date gain exceeding 325% [1] - The company reported total revenue of approximately 22.696 billion yuan, a year-on-year increase of 31.49%, and a net profit attributable to shareholders of about 1.051 billion yuan, up 101.06% [1] - UBS forecasts an average annual growth rate of 25% for nuclear equipment gross profit from 2025 to 2028, estimating that each new small modular reactor (SMR) could bring an additional revenue potential of approximately 620 million yuan to Harbin Electric [1] Group 2 - Guoyuan International's report indicates that Harbin Electric has a robust order backlog in its coal power business, with improved order quality compared to the previous cycle, which will continue to enhance the company's profits [2] - In hydropower, orders from pumped storage projects are entering the execution phase, and new capacity is beginning to be released, with large hydropower projects expected to benefit from demand growth driven by the Yarlung Tsangpo River hydropower project [2] - The market's approval of nuclear power projects has increased from about 5 units per year from 2019 to 2021 to around 10 units per year from 2022 to 2025, with related orders for the company gradually entering the execution phase [2]

Core Viewpoint - UBS initiates coverage on Harbin Electric (01133) with a "Buy" rating and a target price of HKD 9.6, projecting a compound annual growth rate (CAGR) of 19% in earnings per share from 2024 to 2029 [1] Company Summary - UBS expects the gross profit growth rate for nuclear equipment in China to average 25% from 2025 to 2028 [1] - Each new small modular reactor (SMR) is estimated to provide Harbin Electric with an additional revenue potential of approximately RMB 620 million [1] - The market's increasing confidence in the prospects of nuclear power and Harbin Electric's order execution capability suggests potential for a re-rating of the company [1] Industry Summary - The Tibet Yaxia hydropower project is expected to create additional infrastructure demand, although the specific timing and allocation remain uncertain [1] - The upside potential from the project has not been fully recognized by the market [1]

Core Viewpoint - UBS initiates coverage on Harbin Electric (01133) with a "Buy" rating and a target price of HKD 9.6, projecting a compound annual growth rate (CAGR) of 19% in earnings per share from 2024 to 2029 [1] Company Summary - UBS expects the gross profit growth rate for nuclear equipment in China to average 25% from 2025 to 2028 [1] - Each new small modular reactor (SMR) is estimated to contribute approximately RMB 620 million in revenue upside for Harbin Electric [1] - The market shows increased confidence in the nuclear power outlook and Harbin Electric's order execution capabilities, indicating potential for a re-rating [1] Industry Summary - The Tibet Yaxia hydropower project is expected to create additional infrastructure demand, although the specific timing and allocation remain uncertain [1] - The upside potential from the project has not been fully recognized by the market [1]