Alex NG, an analyst from CMB International Securities, maintained the Buy rating on BOE Varitronix (VARXF – Research Report). The associated price target remains the same with HK$9.63.
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Alex NG has given his Buy rating due to a combination of factors that suggest a positive outlook for BOE Varitronix. The company’s limited exposure to the US market minimizes the impact of reciprocal tariffs on its financials, as only a small percentage of its sales are directly exported to the US. This strategic positioning is further supported by BOE Varitronix’s plans to utilize production facilities in Mexico and Vietnam to bypass tariff barriers, enhancing their ability to supply US markets effectively.
Additionally, the company is focusing on expanding its overseas market presence and diversifying its product mix, which includes venturing into AI hardware and industrial equipment. The management’s confidence in the business’s future is also demonstrated by their recent share repurchase plan. These strategic initiatives, alongside the positive outlook for regional capacity expansion, particularly in Vietnam and Mexico, contribute to Alex NG’s optimistic Buy rating for BOE Varitronix.
In another report released on March 31, Citi also maintained a Buy rating on the stock with a HK$7.40 price target.