Ge Long Hui A P P·2025-08-27 06:28Core Viewpoint - Citigroup's research report indicates that BOE Technology Group's profit margins in the first half of the year were weak, primarily due to investments in system business [1] Group 1: Financial Performance - Management stated that system revenue is expected to grow over 60% year-on-year in the first half of 2025 [1] - The Chengdu factory has achieved profitability, with capacity utilization between 70% and 80% [1] Group 2: Market Outlook - Citigroup notes that BOE's business is gradually recovering, but the progress is very slow [1] - Management anticipates continued destocking pressure in the domestic market for the second half of the year, predicting that net profit margins will remain flat compared to the first half [1] Group 3: Investment Rating - Citigroup has downgraded the investment rating from "Buy" to "Sell" [1] - The target price has been reduced from HKD 7.4 to HKD 5.5 [1]