Xin Lang Cai Jing·2026-02-27 10:36Core Viewpoint - The report from CMB International indicates that BOE Technology Group Co., Ltd. (00710) is expected to announce its 2025 performance in mid-March, with projected revenue and net profit of HKD 14.533 billion and HKD 385 million respectively, reflecting a year-on-year growth of +8% and a decline of -3% [1][2] Financial Projections - For the second half of 2025, the anticipated revenue and net profit are HKD 7.863 billion and HKD 205 million, showing a year-on-year increase of +8% and a decrease of -10% [1][2] - The main factors affecting performance include domestic destocking pressure, yield rates at new factories in Vietnam and Chengdu, and profitability of the system business [1][2] Outlook for 2026 - The outlook for 2026 is positive, with expectations for a recovery in profitability driven by increased overseas market share, ramp-up of production capacity in Vietnam, and improved profit margins from the Chengdu factory and system business [1][2] - Due to anticipated profit pressures in the second half of 2025, higher depreciation costs, and slow improvement in system business margins, the earnings per share forecast for 2025-2027 has been revised down by 5-7% [1][2] Target Price Adjustment - The target price has been adjusted to HKD 8.4 based on a price-to-earnings ratio of 14.0 times the estimated earnings for the fiscal year 2026, down from a previous target of HKD 8.84 [1][2] - The rating remains "Buy" [1][2]