CICC has raised its target price for DONGYUE GROUP (00189) to HK$16.68 following the company's interim results which met market expectations.
DONGYUE GROUP reported first-half revenue growth of 2.8% year-over-year, with pre-tax profit surging 111.4% and net profit rising 153.3%. The overall performance was in line with market expectations.
Taking into account potential remaining impairment impacts from DONGYUE GROUP's equipment and real estate businesses, CICC has lowered its 2024 net profit forecast by 10% to RMB 1.902 billion, while maintaining its 2025 net profit forecast at RMB 2.694 billion.
Additionally, considering the gradual valuation shift to next year and the sector valuation enhancement effect brought by liquid cooling technology, CICC has raised the target price by 15% to HK$16.68 and maintained its "Outperform" rating.