Glonghui, August 25 | CMB International gave Yingheng Technology a “buy” rating. The target price was HK$6.37, which is equivalent to an FY23e price-earnings ratio of 12x. Based on the FY23E/24E price-earnings ratio of 6.3x/5.1x, it is believed that Yingheng's risk return is attractive compared to its A/H share peers. According to the research report, in the first half of 2023, Yingheng Technology achieved revenue of 2.63 billion yuan, an increase of 26.5% over the previous year; profit attributable to shareholders was 154 million yuan, an increase of 1.2% over the previous year. Yingheng Technology's new energy business has achieved steady growth, mainly due to increased customer penetration and increased share of new projects. CMB International expects Yingheng Technology's revenue/net profit for the second half of 23E to increase by 33% and 35%, respectively. The bank believes that, driven by the traditional peak season, normalization of R&D expenses, and new product shipments, it is optimistic about Yingheng Technology's profit recovery in the second half of 23E.