京东方精电：Limited impact from tariff given low US exposure-20250414

Investment Rating - The report maintains a "BUY" rating for BOE Varitronix, indicating a potential return of over 15% over the next 12 months [10][20]. Core Insights - The management believes that the recent US reciprocal tariffs will have a limited impact on financials due to low US sales exposure, which is only 2.6% in FY23 [9][10]. - BOE Varitronix is optimistic about the ramp-up of capacity in Vietnam by 2025 and has already secured orders from US and South Korean customers [9]. - The company plans to focus on overseas market expansion and adjust its product mix to mitigate tariff risks in the long term [9][10]. - A share repurchase plan announced on April 11 demonstrates management's confidence in the business outlook [9]. Financial Summary - Revenue is projected to grow from HK$10,760 million in FY23A to HK$22,228 million in FY27E, reflecting a CAGR of approximately 14.6% [2][17]. - Net profit is expected to recover from HK$391.3 million in FY24A to HK$738.7 million in FY27E, with a notable growth of 29.4% in FY25E [2][17]. - The company’s P/E ratio is forecasted to decrease from 10.1x in FY24A to 5.4x in FY27E, indicating an attractive valuation [2][10]. Target Price and Upside Potential - The target price for BOE Varitronix is set at HK$9.63, representing an upside potential of 91.8$5.02 [3][10]. Share Performance and Market Data - The market capitalization of BOE Varitronix is approximately HK$3,975.8 million, with an average turnover of HK$35.3 million over the last three months [4]. - The stock has experienced a decline of 30.9% over the past month and 17.4% over the past three months [6].