First Read: Harbin Electric Company "Positive 1H26 profit alert beat market..."

研报英文原文证据摘录

First Read: Harbin Electric Company "Positive 1H26 profit alert beat market..."

Forecast returns

Forecast price appreciation 243.5%

Forecast dividend yield 4.4%

Forecast stock return 247.9%

Market return assumption 11.1%

Forecast excess return 236.9%

Company Description

Harbin Electric is a leading Chinese state-owned power equipment manufacturer and

engineering services provider. Its business has four core segments: 1) new power systems,

including thermal, hydro, nuclear, and energy storage equipment; 2) clean, efficient industrial

systems, focused on environmental and petrochemical equipment; 3) green and low-carbon

drive systems, covering marine power and industrial motors; and 4) other businesses,

including EPC contracting, trading, and modern manufacturing services. It serves the

domestic and international markets. It has exposure to China's nuclear and hydropower

buildout.

Valuation Method and Risk Statement

We base our price target on the PE multiple methodology, benchmarked against historical

trading ranges and regional peers. We believe this approach appropriately captures the

company's earnings growth potential and sector positioning.Key downside risks to our view

include: 1) a slower-than-expected recovery in demand for power generation equipment,

particularly in thermal, hydro and nuclear segments; 2) lower than- anticipated average

selling prices (ASPs) or a less favourable cost structure, both of which could weigh on gross

margin performance; 3) delays in the company's transition towards higher-value operation

and maintenance (O&M) services; and 4) slower than expected progress in nuclear

technology development, which could affect the company's long-term order visibility.

First Read: Harbin Electric Company 21 July 2026 ab 2