BofA Securities rated DONGFANG ELEC as a Buy due to several optimistic factors: the company has secured significant orders for thermal and nuclear power equipment from 2021 to 2025, which is expected to drive revenue recognition. Additionally, the long-term profit contribution from the Yarlung Zangbo project, projected to generate over RMB300 million in annual profit between 2031 and 2035, enhances the company's outlook. There is also potential for expansion in gas turbine exports and sustainable growth in the power station services business. However, the report notes risks such as a potential slowdown in power capital expenditure, lower profit margins, and slower-than-expected progress in gas turbine exports.
