"Big Banks" Citigroup: CIMC ENRIC's commercial aviation business is rapidly developing

Citi published a research report indicating that CIMC ENRIC (03899.HK) has outperformed the Hang Seng Index in stock price increase over the past month, primarily due to the rapid development of its commercial aviation business.

The report mentioned that, according to CIMC ENRIC's management, the company's relevant business revenue has exceeded 100 million RMB this year, with 50% coming from overseas. The report believes that although the revenue from this business is limited, it may become a fast-growing segment for CIMC ENRIC due to the earlier release of the "Action Plan for Promoting High-Quality and Safe Development of Commercial Aerospace (2025-2027)" by the China National Space Administration.

Additionally, the report expects that in a low-interest-rate environment, CIMC ENRIC's clean energy and chemical businesses will also see a recovery, assigning it a "Buy" rating with a target price of 9.5 RMB