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Investing.com - Nomura/Instinet initiated coverage on Sieyuan Electric Co Ltd (SZ:002028) with a Buy rating and a price target of RMB98.90, citing strong growth prospects in both domestic and international markets.
The research firm forecasts Sieyuan will achieve a compound annual growth rate of 24% for revenue and 30% for net profit from 2025 to 2027, driven by its solid position in China’s electrical equipment market and accelerating overseas expansion.
Nomura values the company at a target price-to-earnings multiple of 23x, above the peer average of 18x for 2026 estimated P/E, reflecting expectations for stronger earnings growth. The price target of CNY98.90, based on a 2026 forecast EPS of CNY4.30, implies a 17.1% upside potential.
The stock has gained 8.7% over the past month through August 21, outperforming the CSI 300’s 5.0% increase during the same period. Nomura attributes this performance to capital inflows into the electrical equipment sector following the recent extension of the tariff truce between the United States and China.
Nomura identified overseas order intake exceeding market expectations as a key catalyst for the stock, while noting potential downside risks including weaker-than-expected domestic orders, slower global expansion, and delays in new business development.
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