[ET Net News Agency, 9 March 2021] Guotai Junan International lifted its target price
for CIMC Enric (03899) to HK$6 from HK$5.7 and maintained its "accumulate" rating.
The research house expects that the hydrogen JVs' cylinder sales in China to reach
RMB7,997 million by 2025. It also expects that the penetration rate of FCEV HD (fuel cell
electric vehicles heavy-duty) trucks will rise to 3% by 2025 when the number of hydrogen
refueling stations in China reaches 1,000.
Guotai Junan expects that the JVs' market share will reach 35% by 2025 when the total
capacity of 100,000 cylinders becomes fully operational. It fine-tuned its 2020-22 EPS
forecasts by -2.4%/+0.3%/+3.0%, respectively.
Despite the stronger-than-expected impact from the COVID-19 pandemic on sales of tank
containers in 2020, Guotai Junan believes the establishment of the JVs will be a solid
milestone in the company's expansion into the promising hydrogen business. (KL)