CMB International Securities analyst Alex NG maintained a Buy rating on BOE Varitronix yesterday and set a price target of HK$8.84.
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Alex NG has given his Buy rating due to a combination of factors that highlight BOE Varitronix’s potential for growth and stability. The company’s revenue in the first half of 2025 grew by 8% year-over-year, driven by strong performance in the high-end automotive products and system business segments. Despite higher costs impacting net profit growth, the management has provided guidance for stronger revenue in the second half of 2025, supported by new orders from China and product expansion.
In the long term, Alex NG remains optimistic about BOE Varitronix’s position as a leading global automotive display provider, benefiting from overseas expansion and strategic capacity increases. Although earnings per share estimates for the fiscal years 2025 to 2027 have been adjusted downward to account for current cost pressures, the stock’s valuation remains attractive. Trading at a favorable price-to-earnings ratio, the stock offers a compelling risk-reward profile, justifying the Buy recommendation.
NG covers the Technology sector, focusing on stocks such as AAC Technologies Holdings, Xiaomi, and Q Technology (Group) Co. According to TipRanks, NG has an average return of 56.6% and a 74.47% success rate on recommended stocks.
In another report released on August 20, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a HK$8.50 price target.