The Zhitong Finance App learned that Citi released a research report stating that Dongfang Electric (01072)'s profit forecast for 2026-2028 was lowered by 1-6% to reflect more prudent revenue and profit margin assumptions. The target price was lowered from HK$54 to HK$30, maintaining a “buy” rating.

The bank said that the stock's recent rebound may be due to the market making more realistic expectations about the revenue contribution of its gas turbine exports. However, the company's operating performance has been steady since the beginning of the year. The report mentioned that new orders in the first five months of 2026 increased by 10% year-on-year, in line with its annual target. By the end of May, uncompleted orders had also increased 7% to 150 billion yuan.

Due to the most diverse product portfolio, Dongfang Electric is still Citi's preferred stock in the power generation equipment sector in China. The bank believes that the current price-earnings ratio of 11.2 times 2027 is not high.

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