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HSBC Research: 15th Five-Year Energy Plan Positive for Power Equipment Sector; Favors HARBIN ELECTRIC (01133.HK) and DONGFANG ELEC (01072.HK)
2026-06-29 15:52:13
HSBC Global Investment Research published a report noting that Chinese authorities recently officially released the 15th Five-Year Energy Plan. The new power infrastructure construction targets are broadly in line with expectations and are viewed as positive for the power equipment sector. The plan does not mention "restricting new coal-fired power capacity additions," reflecting a more flexible government stance toward new coal power projects, which is expected to help alleviate market concerns over a sharp decline in coal power equipment orders.

HSBC Global Investment Research maintained its Buy ratings on HARBIN ELECTRIC (01133.HK) and DONGFANG ELEC (01072.HK). It noted that both stocks have recently adjusted in line with weaker H-share market sentiment and may have corrected excessively. The broker prefers HARBIN ELECTRIC given its more attractive risk-reward profile, with a forecast 2027 price-to-earnings ratio of only 6x. In addition, potential inclusion in Stock Connect in July could serve as a near-term catalyst. The TP is maintained at HKD32. The TP for DONGFANG ELEC is lowered from HKD45 to HKD41, mainly due to valuation declines among global peers, while earnings forecasts for both companies remain unchanged. (gc/da)~

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This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation.