Street Calls of the Week
Investing.com - HSBC initiated coverage on Shanghai Hanbell Precise Machinery (SZ:002158) with a Buy rating and a price target of RMB36.60, citing strong growth potential in industrial heat pumps.
The research firm identified the compressor market as a major industrial segment with long-term growth prospects both in China and globally, with Hanbell positioned as a leading compressor manufacturer in China with a diverse product line.
While investor interest has recently focused on compressor demand from AI data centers, driving Hanbell’s share price rally since August, HSBC believes this perspective overlooks a more significant opportunity in industrial heat pumps.
HSBC forecasts China’s industrial heat pump market will grow from RMB1.4 billion in 2024 to RMB38.9 billion in 2033, representing a compound annual growth rate of 45%.
The firm expects industrial heat pumps to account for 54% of Hanbell’s business, describing it as "a decade-long growth story that has yet to be priced in by the market."
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