CMB International Securities analyst maintained a Buy rating on BaTeLab Co., Ltd. (2149 – Research Report) on June 13 and set a price target of HK$93.00.
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CMB International Securities has given its Buy rating due to a combination of factors that highlight BaTeLab Co., Ltd.’s strong growth potential and strategic initiatives. The company has demonstrated a clear and sustainable growth strategy, which has impressed the analysts following a detailed discussion with the management team. This strategy, coupled with a recovering industrial market demand, positions BaTeLab as a top conviction in the semiconductor sector.
Furthermore, BaTeLab’s investment in upstream manufacturing resources is seen as a strategic move to secure its supply chain and mitigate geopolitical risks. This investment is expected to enhance process control and improve lead time reliability, thus reinforcing the company’s resilience. Additionally, despite macroeconomic uncertainties, BaTeLab is projected to maintain sustainable growth in both revenue and net profit, supported by its SKU-rich product strategy. The company’s current trading valuation is considered attractive compared to its domestic peers, suggesting potential for future valuation revisions.
2149’s price has also changed dramatically for the past six months – from HK$29.300 to HK$73.250, which is a 150.0% increase.