Dongfang Electric falls 5% as strong H1 profit offset by no interim dividend

Dongfang Electric (1072.HK) fell nearly 5% in Hong Kong trading to HK$21.38. The power equipment maker reported first-half net income of 2.71 billion yuan, up 42% year-over-year, but said it would not pay an interim dividend — a decision that likely triggered the selloff.

Revenue for the six months edged up 1.2% to 38.62 billion yuan. Energy equipment manufacturing grew 3.96% and emerging businesses rose 7.18%, though manufacturing services slid 11.86%. New orders climbed 6.7% to 69.88 billion yuan, with the company holding the top market share in gas and power equipment.

Separately, Dongfang Electric secured its first wave-energy equipment contract and won the turbine-generator package for CGN Geermu's 350-megawatt concentrated solar project. Artemis Investment Management raised its stake to 7.01% on Aug. 13, buying 546,000 shares. Still, the stock had already dropped about 5% last week, and Wednesday's decline reflected apparent disappointment over the absence of a dividend despite strong earnings.