Analyst from CMB International Securities reiterated a Buy rating on BaTeLab Co., Ltd. (2149 – Research Report) and keeping the price target at HK$69.50.
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CMB International Securities has given its Buy rating due to a combination of factors that highlight BaTeLab Co., Ltd.’s strategic positioning and growth potential. The company’s self-developed EDA platform provides a significant advantage in light of recent US restrictions on EDA software exports to China. This independence from overseas EDA tools positions BaTeLab to capitalize on the accelerated development of domestic alternatives, which is crucial given the geopolitical tensions affecting the semiconductor industry.
BaTeLab’s vertical integration, encompassing EDA tools, IP libraries, and design processes, allows it to efficiently navigate a fragmented supply chain and deliver innovative solutions. This capability is particularly valuable in China’s analog IC market, where the company has incorporated over 600 IP modules and implemented a Tool-IP-Design framework. The company’s attractive valuation, with a P/E ratio significantly lower than its peers, coupled with its robust revenue growth and high margins, further supports the Buy rating. CMB International Securities maintains a target price of HK$69.5, suggesting a 22.4% upside potential.
2149’s price has also changed dramatically for the past six months – from HK$29.900 to HK$61.300, which is a 105.02% increase.