CICC: Raises the target price of DONGYUE GROUP to HKD 16.68, mid-term performance meets expectations

CICC released a research report stating that DONGYUE GROUP's revenue in the first half of the year increased by 2.8% year-on-year, with pre-tax profit rising by 111.4% and net profit increasing by 153.3%. Overall performance met market expectations. The firm has lowered its net profit forecast for the group this year by 10% to RMB 1.902 billion, considering the potential residual impairment impact from DONGYUE GROUP's equipment and real estate businesses, while maintaining the net profit forecast for next year at RMB 2.694 billion. Additionally, taking into account the gradual shift in valuation to next year and the valuation uplift effect brought by liquid cooling, the target price has been raised by 15% to HKD 16.68, maintaining an "outperform" rating