BOE VARITRONIX(HK:00710) GOLDEN SUN SECURITIES·2026-01-25 07:45Investment Rating - The report maintains a "Buy" rating for BOE Technology Group Co., Ltd. (00710.HK) [5] Core Insights - BOE Technology Group is actively expanding its product offerings and international presence, recently launching the HERO 2.0 smart cockpit at CES 2026, which integrates AI technology to enhance audio-visual experiences, interaction methods, and application scenarios [1] - The company is also expanding its production capacity with the construction of the third phase of its Heyuan manufacturing base, expected to add over 10 million units of annual production capacity upon completion in December 2026 [2] - Revenue projections for 2025-2027 are approximately HKD 14 billion, HKD 15.5 billion, and HKD 17.5 billion, reflecting year-on-year growth of 4%, 10%, and 13% respectively, while net profit is expected to be HKD 3.7 billion, HKD 4.7 billion, and HKD 5.5 billion, with a slight decline in 2025 followed by growth in subsequent years [3][4] Financial Summary - For the fiscal year 2023, the company reported revenue of HKD 10.76 billion, with a projected increase to HKD 13.45 billion in 2024, and further growth to HKD 14.00 billion in 2025, representing a 0% growth in 2023 and 25% in 2024 [4][12] - The net profit for 2023 was HKD 475 million, with expectations of HKD 391 million in 2024 and a slight recovery to HKD 373 million in 2025, indicating a net profit margin of 4.4% in 2023, declining to 2.9% in 2024, and stabilizing around 3.0% in 2026 and 3.1% in 2027 [4][12] - The company's P/E ratios for 2025, 2026, and 2027 are projected to be 10.5x, 8.4x, and 7.2x respectively, indicating a favorable valuation trend [3][4]