CMB International Securities analyst maintained a Buy rating on Black Sesame International Holding Limited today and set a price target of HK$28.00.
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CMB International Securities has given its Buy rating due to a combination of factors that highlight Black Sesame International Holding Limited’s potential for growth. The company’s revenue increased significantly by 40% year-over-year, driven by strong demand for its assisted driving solutions. Despite facing margin pressure, the company has managed to narrow its net loss on a non-IFRS basis, thanks to effective cost control and improved research and development efficiency.
Looking ahead, CMB International Securities anticipates substantial revenue growth in the coming years, supported by the increasing adoption of driving assistance technologies and advancements in chip performance. The company’s strategic focus on SoC-based solutions and its expansion into the robotics sector are expected to drive future growth. The valuation reflects Black Sesame’s diversification and its ability to secure significant overseas orders, which underscores its competitive advantage and global scalability. However, potential risks such as industry adoption rates, competition, and geopolitical factors are acknowledged.