Core Viewpoint - Shenyin Wanguo has initiated coverage on CIMC Enric (03899) with a "Buy" rating, highlighting its strong financial health and robust order backlog, driven by growth in natural gas demand, decarbonization in shipping, and hydrogen industry policies [1] Group 1: Company Overview - CIMC Enric is a clean energy equipment platform under CIMC Group, focusing on transportation, storage, and processing equipment for natural gas, along with integrated services [2] - The company is expected to achieve a CAGR of 17% in net profit attributable to shareholders from 2020 to 2024, primarily benefiting from the continuous improvement in clean energy equipment performance [2] - The company has maintained a return on equity (ROE) above 10% over the past four years, with a dividend payout ratio exceeding 50% in the last two years [2] Group 2: Energy Equipment - The company has a strong order backlog, with total orders reaching 30.8 billion yuan as of Q3 2025, including 27.3 billion yuan in clean energy equipment [3] - Natural gas is expected to play a crucial role in energy transition, with anticipated price declines driving LNG infrastructure development, benefiting the company's leading position in LNG storage and transportation products [3] - The shipping industry is expected to see a doubling of LNG-powered vessels by 2030, driven by environmental regulations and economic advantages, which will boost orders for LNG bunkering vessels and fuel tanks [3] - The company is well-positioned to benefit from hydrogen energy policies, with its core products spanning the entire hydrogen production, storage, transportation, and utilization chain [3] Group 3: Energy Operations - The company is utilizing coke oven gas to produce blue hydrogen and LNG, with its first project set to be operational in 2024, aiming for a cumulative capacity of approximately 200,000 tons of hydrogen and 1 million tons of LNG by 2027 [4] - The potential for green methanol is significant, driven by decarbonization in shipping and renewable energy consumption, with the company’s 50,000-ton biomass methanol project expected to benefit first [4] Group 4: Other Business Segments - The chemical environment segment, which holds over 50% of the global market share in tank containers, is expected to face short-term pressure due to chemical cycle impacts, prompting the company to expand its after-market services [5] - The liquid food segment, including well-known brands like Ziemann beer equipment, is experiencing a slowdown in consumer demand, leading to a diversification strategy to enhance resilience [5]

Core Viewpoint - Shenwan Hongyuan initiates coverage on CIMC Enric (03899) with a "Buy" rating, highlighting its strong financial health and robust order backlog, driven by growth in natural gas demand, decarbonization in shipping, and hydrogen industry policies [1] Group 1: Financial Performance - CIMC Enric is a clean energy equipment platform under CIMC Group, with a stable financial position and a major shareholder holding 70% [1] - The company expects a CAGR of 17% in net profit attributable to shareholders from 2020 to 2024, benefiting from the continuous improvement in clean energy equipment performance [1] - The gross profit contributions from clean energy, chemical environment, and liquid food segments for H1 2025 are 71%, 14%, and 15% respectively [1] - The company has maintained a ROE above 10% for the past four years and has a cash-rich position, with a dividend payout ratio exceeding 50% in the last two years [1] Group 2: Order Backlog and Market Potential - As of Q3 2025, CIMC Enric has a total order backlog of 30.8 billion yuan, with clean energy equipment orders amounting to 27.3 billion yuan (20 billion yuan for marine and 7.1 billion yuan for land-based applications, and 300 million yuan for hydrogen) [2] - The company is positioned to benefit from the anticipated decline in natural gas prices, which will enhance LNG infrastructure [2] - The LNG shipping market is expected to double by 2030, driven by environmental and economic advantages, leading to increased orders for LNG bunkering vessels and fuel tanks [2] - The hydrogen sector is expected to benefit from the implementation of the 14th Five-Year Plan for hydrogen and ammonia policies, with the company’s core products covering the entire hydrogen production, storage, transportation, and utilization chain [2] Group 3: Energy Operations - CIMC Enric utilizes coke oven gas to produce blue hydrogen and LNG, with the first project at Angang expected to be profitable in its first year of operation, targeting a cumulative capacity of approximately 200,000 tons of hydrogen and 1 million tons of LNG by 2027 [3] - The potential for green methanol is significant, driven by decarbonization in shipping and renewable energy consumption, with the company’s 50,000-ton biomass methanol project expected to be a frontrunner [3] Group 4: Other Business Segments - The chemical environment segment, with a global market share exceeding 50% in tank containers, is expected to face short-term pressure due to chemical cycle impacts, prompting the company to expand its after-market services [4] - The liquid food segment, which includes well-known brands like Ziemann beer equipment, is experiencing a slowdown in consumer demand, leading to a diversification strategy to enhance resilience [4]