Credit Suisse raised its target price for Precision Electronics (0710.HK) from HK$5.00 to HK$5.30, raising earnings expectations for the 2013-14 fiscal year by 9%-13% as vehicle panel sales and profit margin expectations increased; maintaining the stock's outperforming market rating.

According to Credit Suisse, Precision's profit for fiscal year 2012 was HK$160 million, 10% higher than generally expected; European demand has stopped deteriorating since the second half of 2012, and automotive panel sales in 2013-14 are expected to increase 16%-19% over the previous year.

Credit Suisse also said that 40% of the new production capacity is supporting the growth of the refined electric vehicle panel business, taking advantage of the recovery of the European automobile market. Credit Suisse said that Precision Electric is benefiting from lower parts costs due to the recent weakening of the yen.

Precision Electronics rose 17.0% to HK$4.75 on Monday.