Shenwan Hongyuan Group Co., Ltd. has initiated coverage on CIMC ENRIC (03899) with a "Buy" rating, highlighting its position as a leading clean energy equipment provider under China International Marine Containers (CIMC). The company boasts robust financials and a strong order book, driven by growing natural gas demand, decarbonization in shipping, and hydrogen energy policies. Its dual growth engines—equipment manufacturing and operations (including coke oven gas-to-hydrogen and green methanol)—underscore its solid profitability and long-term potential.

**Key Highlights:** 1. **Financial Stability:** As CIMC’s clean energy platform, CIMC ENRIC specializes in natural gas transport, storage, and processing equipment, alongside integrated services. CIMC holds a 70% stake. From 2020 to 2024, its net profit CAGR reached 17%, supported by rising clean energy equipment sales. In H1 2025, clean energy accounted for 71% of gross profit, followed by chemical/environmental (14%) and liquid food (15%). The company maintains an ROE above 10% and a dividend payout ratio exceeding 50% for two consecutive years.

2. **Energy Equipment Growth:** - **Onshore:** Natural gas remains pivotal in energy transition, with anticipated price declines likely to spur LNG infrastructure demand. CIMC ENRIC, a leader in LNG storage/transport products, stands to benefit. - **Marine:** The shipbuilding upcycle and decarbonization trends favor LNG-powered vessels, which are projected to double by 2030. This drives demand for LNG bunkering ships and fuel tanks. Additionally, sulfur caps and cost advantages could accelerate "oil-to-gas" conversions, affecting 19% of global vessels. - **Hydrogen:** The company’s end-to-end hydrogen solutions position it to capitalize on upcoming hydrogen-ammonia-methanol policies.

3. **Energy Operations Expansion:** - **Coke Oven Gas:** Its blue hydrogen and LNG project with Ansteel (launched in 2024) targets 200,000 tons of hydrogen and 1 million tons of LNG capacity by 2027. - **Green Methanol:** Short-term supply shortages and shipping decarbonization boost prospects for its 50,000-ton biomass methanol project.

4. **Other Segments:** - **Chemical/Environmental:** Despite cyclical pressures (global tank container market share >50%), the company is expanding aftermarket services to mitigate volatility. - **Liquid Food:** Brands like Ziemann face consumer slowdowns but benefit from diversification strategies.

**Risks:** Policy/execution delays, forex fluctuations, and cyclical downturns in chemicals.