Huayuan Securities released a research report initiating coverage on CIMC ENRIC (03899) with a "Buy" rating. The company's core equipment business aligns with the clean energy transition trend, its order book has reached a record high with waterborne clean energy production scheduled through 2028, indicating potential for robust earnings growth with high visibility. Concurrently, the successive launch of projects such as green methanol and coke oven gas-to-hydrogen co-producing LNG is expected to foster multi-dimensional growth in operations, equipment, and process technology within its integrated services. The main viewpoints of Huayuan Securities are as follows:
The company, a subsidiary of CIMC Group, is anchored in equipment manufacturing and pursues a strategy of "Key Equipment + Core Process Technology + Integrated Services," driving simultaneous advancement in its three main business segments. Its primary operations encompass clean energy, chemical environment, and liquid food sectors, focusing on natural gas/hydrogen equipment, tank container equipment, and liquid food like beer, respectively, providing customers with key equipment for transportation, storage, and processing, alongside engineering services and system solutions. In 2024, these three segments generated revenues of RMB 17.18 billion, RMB 3.12 billion, and RMB 4.45 billion, respectively; they achieved operating profits of RMB 960 million, RMB 350 million, and RMB 350 million, accounting for 57.6%, 21.2%, and 21.1% of the total, respectively. For the full year 2024 and the first three quarters of 2025, the company reported net profits attributable to shareholders of RMB 1.095 billion and RMB 767 million, respectively. As of the end of September 2025, the company's order backlog stood at approximately RMB 30.76 billion, an increase of 10.9% year-on-year, reaching a new high.
In the Clean Energy segment, new order intake is robust, with rising LNG transport capacity demand and the low-carbon transition in shipping expected to drive steady earnings growth for the segment; capacity expansion may potentially accelerate delivery pace and facilitate earnings realization. The segment's main products include land-based and waterborne equipment for natural gas and hydrogen energy. In the first three quarters of 2025, the Clean Energy segment secured new orders worth RMB 16.99 billion, up 5.14% year-on-year, constituting about 86.5% of the company's total new orders for the period. Within this, waterborne clean energy equipment orders amounted to RMB 8.65 billion, increasing 16.2% year-on-year, with an order backlog of approximately RMB 20 billion (production scheduled through 2028), representing about two-thirds of the total RMB 30.76 billion backlog. The report suggests that 1) growing domestic natural gas consumption and the gradual commissioning of new LNG receiving terminals are likely to boost demand for the company's land-based clean energy equipment; 2) amid the global trend towards low-carbon shipping, the launch of more LNG alternative fuel vessels is expected to spur demand for LNG carriers and bunkering vessels. Furthermore, growth in waterborne clean energy capacity is anticipated to accelerate earnings release: subsidiary CIMC Pacific Offshore has collaborated externally to add new shipbuilding berths, enhancing shipbuilding capacity, and a fuel tank production line at Zhoushan Marine Engineering is also expected to be established.
Regarding Integrated Services within Clean Energy, the successive commissioning of coke oven gas-to-hydrogen co-producing LNG projects and biomass-to-green methanol projects is expected to contribute earnings from three dimensions: key equipment, process technology, and operations. 1) Coke oven gas-to-hydrogen co-producing LNG projects – the Anji (Yingkou) project (capacity: 100,000 tonnes LNG & 15,000 tonnes hydrogen) and the Linggang CIMC project (147,000 tonnes LNG & 20,000 tonnes hydrogen) commenced operations in September 2024 and July 2025, respectively. Additionally, the under-construction Shougang Shuigang project (130,000 tonnes LNG & 15,000 tonnes hydrogen) is planned for commissioning in 2026. 2) Green Methanol: The company's Phase I biomass-to-green methanol project in Zhanjiang, Guangdong (50,000 tonnes annual capacity) began operation in December 2025, with the Phase II project (200,000 tonnes capacity) expected to commence in 2027. Moreover, the company signed an MOU with Datang Hainan Company and the Danzhou Municipal Government to collaborate on promoting a "New Energy Local Consumption for Green Methanol Demonstration Project" (designed capacity: 100,000 - 200,000 tonnes/year).
The company's equipment manufacturing also covers the commercial aerospace sector, where future high-frequency launches are anticipated to drive demand for related storage equipment; related revenue and order backlog reached nearly RMB 100 million in 2025. According to the company's official social media, subsidiaries such as Shijiazhuang ENRIC Gas Machinery Co., Ltd. and Zhangjiagang CIMC SANDA Cryogenic Equipment Co., Ltd. have become major global suppliers of aerospace storage equipment. Relevant products include high-pressure nitrogen and helium storage equipment, liquid hydrogen storage tanks, among others. The company has established long-term equipment supply relationships with domestic institutions like China Aerospace Science and Technology Corporation, Beijing Research Institute of Telemetry, and Oriental Space Technology, as well as with overseas renowned commercial aerospace companies.
In the Chemical Environment & Liquid Food segments, core subsidiaries CIMC Tank Technology and CIMC Alcohol Technology hold leading market positions in their respective fields, with overseas markets being their primary focus. 1) The Chemical Environment business is primarily conducted by CIMC Tank Technology (301559.SZ), a leading global tank container manufacturer with leading scale, a complete product series, and advanced technology. CIMC Tank Technology's 2024 annual report shows that overseas revenue accounted for approximately 79% of its total; according to data from the International Tank Container Organisation (ITCO), CIMC Tank Technology consistently maintains around a 50% global market share in the tank container industry. 2) The Liquid Food business is mainly operated by CIMC Alcohol Technology (872914.NQ), which has deep expertise in intelligent bio-fermentation equipment and production lines for about 18 years. In 2024, its overseas revenue占比 was approximately 89%, and it was recognized as a National-Level "Little Giant" specialized and sophisticated SME.
Risk warnings include order delivery pace falling short of expectations, project profitability being lower than anticipated, and demand from downstream sectors underperforming forecasts.
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