DONGFANG ELEC Surges Over 5% in Session, Huatai Securities Reiterates "Buy" Rating

Deep News05-12

DONGFANG ELEC (01072) rose more than 5% in early trading. As of the time of writing, the stock is up 3.18%, currently trading at HKD 38.24, with a turnover of HKD 356 million.

On April 30th, DONGFANG ELEC held a formal signing ceremony with a North American client at its Dongfang Turbine Works for the overseas deployment of its independently developed gas turbines. The initial phase of the cooperation involves the signing of 10 units of the 50MW G50 self-developed gas turbines. It is reported that the board of directors has approved the project to enhance the core production capacity for these independent gas turbines at Dongfang Turbine. It is expected that by early 2028, the production capacity for the independent G50 model will reach 20-30 units.

Huatai Securities believes that against the current backdrop of tight global gas turbine production scheduling, DONGFANG ELEC is well-positioned to benefit significantly. The brokerage is optimistic about the gradual realization of future overseas orders contributing to profit elasticity. In February 2025, the company announced its shareholder return plan for the next three years, clearly stating that on the basis of the 2024 dividend payout ratio, the ratio for 2025-2027 will increase by at least 1 percentage point each year. Huatai Securities maintains a "Buy" rating on the company's A and H shares.

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