Zhi Tong Cai Jing·2025-08-27 06:33Core Viewpoint - BOE Technology Group (京东方精电) experienced a significant decline in stock price following its removal from the Hang Seng Composite Index, reflecting market concerns about its financial performance and future outlook [1] Group 1: Stock Performance - As of the report, BOE Technology's stock fell by 5.21%, trading at HKD 6.55, with a transaction volume of HKD 112 million [1] Group 2: Index Adjustment - On August 22, the Hang Seng Index Company announced its semi-annual index adjustment results, effective from September 8, which included the removal of BOE Technology from the Hang Seng Composite Index [1] Group 3: Financial Performance - For the first half of the year, BOE Technology reported revenues of HKD 6.671 billion, an increase of approximately 8% year-on-year [1] - The company's net profit attributable to shareholders was approximately HKD 180 million, reflecting a year-on-year increase of about 5% [1] Group 4: Analyst Insights - Citigroup's research report indicated that BOE Technology's profit margins were weak due to investments in system business [1] - The report noted that while BOE Technology's business is gradually recovering, the progress is very slow, and management anticipates continued inventory destocking pressure in the domestic market for the second half of the year [1] - Citigroup downgraded its investment rating from "Buy" to "Sell" and reduced the target price from HKD 7.4 to HKD 5.5, expecting no significant improvement in operating profit margins over the next two years [1]