CICC: Raises target price of Dongyue Group (00189.HK) to 16.68 Hong Kong dollars, mid-term performance in line with expectations.

According to the Wisdom Finance APP, CICC released a research report stating that Dongyue Group (00189.HK) had a year-on-year revenue increase of 2.8% in the first half of the year, with pre-tax profit increasing by 111.4% and net profit rising by 153.3%. The overall performance meets market expectations. Considering the potential residual impairment impact of Dongyue Group's equipment and real estate businesses, the bank has lowered the group's net profit forecast for this year by 10% to 1.902 billion RMB, while maintaining next year's net profit forecast at 2.694 billion RMB. In addition, taking into account the gradual switch in valuation to next year and the sector valuation enhancement effect brought by liquid cooling, the target price has been raised by 15% to 16.68 Hong Kong dollars, while maintaining an "outperform" rating.