The Zhitong Finance App learned that Yamato released a research report stating that it maintains Ruisheng Technology's (02018) “buy” rating and believes that its optical/acoustic profitability is constantly improving, so the profit forecast for this year and next two years has increased 33% to 95%. Also, taking into account PPS's contribution and the increase in gross profit forecasts, the earnings forecast per share for this year and next two years was raised by 25% to 29%, and the target price was raised from HK$20 to HK$30.

According to the report, the company's performance in the second half of last year exceeded expectations and recorded revenue of RMB 11.2 billion, which was the same as the previous year, in line with the bank's and market expectations. Based on continuous improvements in the product structure, the gross profit margin for the second half of last year was 19.2%, up from 14.1% in the first half of last year and 17.8% in the second half of 2022, and higher than the bank and market expectations of 17.3% to 18.5%. Operating profit for the second half of last year was 486 million yuan, an increase of 39% over the previous year.

Overall, the company's net profit for the second half of last year was 590 million yuan, or 49 cents per share, up 26% year on year, 30% to 40% higher than the bank and market expectations. Furthermore, Ruisheng completed the acquisition of 80% of PSS's shares in February this year. The bank believes that the increase in the company's automotive business contribution is a positive step driving growth, and PSS is expected to contribute about 10% to 15% of Ruisheng's total net profit this year and next two years.