Dongfang Electric (H): Takeaway from investors open day: GT capacity expansion plan is in line

Research evidence excerpt

Dongfang Electric (H): Takeaway from investors open day: GT capacity expansion plan is in line

Accessible version

Dongfang Electric (H)

Takeaway from investors open day: GT

capacity expansion plan is in line

Maintain Rating: BUY | PO: 56.00 HKD | Price: 37.64 HKD

Gas turbine capacity to reach 23/45units by end 2027/29 15 May 2026

Dongfang electric (DEC) announced a sales order of 10 units 50MW gas turbine (G50 GT) Equity

with a Canadian client with application in data center. DEC is actively sourcing order and

receiving enquiries globally. Mgmt updates its GT export capacity expansion plan: 1)its Peter Wang >> Research Analyst

total GT export capacity to reach 20 units small-mid size GT(mainly 50MW product) and Merrill Lynch (Hong Kong)

3 units large size GT(mainly 200MW product) by end 2027 vs 10 units 50MW product in +852peter.wang2@bofa.com3508 7185

2025. 2)its total GT export capacity to reach 35 units small-mid size and 10 units large Matty Zhao >>

size by end 2029. The latest plan is in line with previous guidance of 20-30 units Research Analyst

Merrill Lynch (Hong Kong)

capacity in next 2 years see our report: +852 3508 4001

matty.zhao@bofa.com

Breakdown of 1Q26 earnings & orders

In 1Q26, its total sales reached RMB17.5bn, +5.6% YoY. By product: energy equipment

business sales reached RMB13.168bn, with gross margins of 15.09%: manufacturing Stock Data

service sales reached RMB2.94bn, with gross margins of 33.85%; emerging industries

business sales was RMB1.36bn with gross margin of 16.14%. New orders signed Price 37.64 HKD

reached RMB36.6bn in 1Q26, +2% YoY, among which 70% was attributable to energy Price Objective 56.00 HKD

equipment manufacturing, 24% to manufacturing services, and 6% to emerging Date Established 30-Apr-2026

industries.