Zhongtai International has revised its forecast for CIMC ENRIC's (03899) shareholder net profit for FY25-27 upwards by 1.9%, 1.2%, and 2.1%, respectively. The target price has been raised from HK$7.40 to HK$8.60, reflecting an 11.5x FY26 P/E ratio and 10.4% upside potential, accounting for reduced capital market risks. The rating has been upgraded from "Neutral" to "Overweight." Key highlights from Zhongtai International's report include:

**12.2% YoY Growth in Shareholder Net Profit for 25Q1-3** Total revenue and shareholder net profit for 25Q1-3 increased by 7.7% and 12.9% YoY to RMB19.35 billion and RMB770 million, respectively. While revenue from the chemical environmental protection and liquid food segments declined by 28.2% and 13.9% YoY to RMB1.57 billion and RMB2.74 billion, the clean energy segment saw a 19.4% YoY rise to RMB15.04 billion. Notably, the marine clean energy segment (including shipbuilding and marine fuel tank businesses) surged 64.4% YoY to RMB4.81 billion.

**Accelerated New Order Intake in Q3** New orders in 25Q3 jumped 104.1% YoY to RMB8.91 billion, with the clean energy segment soaring 147.7% YoY to RMB8.03 billion. Key contracts include: 1. A 2+2 order for 51,000 cubic meter ammonia dual-fuel mid-sized LPG/liquid ammonia carriers from Norway’s Amon Gas. 2. Two 18,900 cubic meter LNG bunkering vessels for Singapore’s Purus. 3. A 2+2 order for 20,000 cubic meter LNG bunkering vessels for GSX Energy.

Despite a YoY decline in 25H1, total new orders for 25Q1-3 fell only 5.4% YoY to RMB19.64 billion, with the clean energy segment up 5.1% to RMB16.99 billion (marine clean energy orders rose 16.2% to RMB8.65 billion). As of September 30, the order backlog stood at RMB30.76 billion, up 10.9% YoY, with clean energy orders at RMB27.34 billion (+23.6% YoY), including RMB19.95 billion (+39.5% YoY) for marine clean energy, with production scheduled through 2028.

**Green Methanol Project Nearing Completion** The first phase of the Zhanjiang green methanol project (annual capacity: 50,000 tons) is set to commence operations in 25Q4, catering to marine green fuel demand. Although the International Maritime Organization (IMO) has delayed its net-zero emissions framework adoption by a year, the broader shift toward green fuels remains unchanged. Industry forecasts suggest global marine methanol demand will reach 1-2 million tons this year, already exceeding the current global capacity of 72 tons.