Core Viewpoint - Citigroup has issued a "Buy" rating for Hillstone Technology (01478) with a target price of HKD 12, following the company's profit alert indicating a projected net profit increase of 4 to 4.5 times year-on-year, reaching between RMB 1.395 billion and RMB 1.535 billion, which is lower than Citigroup's expectation of RMB 1.663 billion by 12% but exceeds market expectations [1] Group 1 - Hillstone Technology's strong growth is attributed to accelerated growth in non-mobile CCM lens modules in the Internet of Things and automotive sectors [1] - The company is focusing on high-end CCM lens modules and fingerprint modules, which are driving better product mix and gross margins [1] - The sale of a 51.08% stake in Hillstone India and improvements in joint venture operations have also contributed to the positive outlook [1] Group 2 - Citigroup's recent assessment reflects expectations of weak performance in the smartphone sector over the next two years, but believes that non-mobile business will continue to drive strong growth [1]
花旗：丘钛科技去年净利润逊预期 料非手机业务续推动强劲增长