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Investing.com - UBS initiated coverage on Anhui Yingliu Electromechanical (SS:603308) with a Buy rating and a price target of RMB28.00 on Friday.
The Chinese casting manufacturer specializes in products used in gas turbines, aircraft engines, and the nuclear power industry, positioning it to benefit from multiple growth sectors simultaneously.
UBS forecasts an earnings compound annual growth rate of 36% for Anhui Yingliu from 2024-29, compared to 20% in 2020-24, driven by global upcycles in gas turbines and aircraft deliveries, along with strong demand from Chinese nuclear plants.
The firm’s 2026-27 total net profit estimates for Anhui Yingliu stand 0-8% above current market consensus, reflecting confidence in the company’s growth trajectory.
Anhui Yingliu currently trades at 28 times its projected 2026 price-to-earnings ratio, which UBS considers undervalued compared to global peers trading at 41 times PE.
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