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Shanghai Electric Group Company ( (HK:2727) ) has provided an update.
Shanghai Electric Group Company Limited has approved the disposal of its 47.4% equity stake in subsidiary Shanghai Electric Guoxuan New Energy Technology Co., Ltd. via a public tender on the Shanghai United Assets and Equity Exchange, setting a nominal starting tender price of RMB1 based on a pre-assessment of the subsidiary’s total equity value. The company will also waive its right of first refusal over an additional 3.6% stake in Electric Guoxuan held by an employee shareholding platform, enabling a full exit by its side of shareholders. Management said Electric Guoxuan’s core business—100Ah lithium iron phosphate battery-based energy storage products aimed at backup power and overseas residential storage—no longer aligns with Shanghai Electric’s strategic focus on large-capacity batteries for domestic power energy storage, and the subsidiary has posted persistent operating losses since its establishment. The transaction, which is neither a material asset restructuring nor a related-party deal, is intended to streamline the group’s portfolio, cut exposure to a loss-making, non-core business line, and reallocate resources toward its main energy storage strategy.
The most recent analyst rating on (HK:2727) stock is a Hold with a HK$4.00 price target. To see the full list of analyst forecasts on Shanghai Electric Group Company stock, see the HK:2727 Stock Forecast page.
More about Shanghai Electric Group Company
Shanghai Electric Group Company Limited is a major Chinese equipment manufacturing conglomerate listed in Hong Kong, with operations spanning power and energy equipment, industrial systems and related services. The company has been developing an energy storage business focused on domestic power energy storage projects, primarily using large-capacity (280Ah and above) lithium iron phosphate battery cells tailored to grid-scale applications in China.
Average Trading Volume: 72,619,339
Technical Sentiment Signal: Buy
Current Market Cap: HK$130.3B
For detailed information about 2727 stock, go to TipRanks’ Stock Analysis page.