CICC raised Ruisheng Technology's (02018) net profit forecast by 22% to 1.17 billion yuan, while introducing next year's net profit forecast to 1.38 billion yuan.
The Zhitong Finance App learned that CICC released a research report stating that it maintained Ruisheng Technology's (02018) “outperforming the industry” rating and raised the target price by 49% to HK$27.2 based on the positive recovery trend of the company's optical and acoustic business. The company's performance last year beat expectations, and its revenue performance was 3% higher than the bank's previous forecast, mainly due to the increase in structural component revenue and the pull-up of optical products.
In the medium to long term, the bank is optimistic that Ruisheng Technology will consolidate its market position in the field of acoustics, and at the same time generate new revenue growth in the structural parts and optics segments, and become a high-quality consumer electronics interaction solution supplier. Also, considering the relative slowdown in competition in the optical industry, the company's net profit forecast for this year was raised by 22% to 1.17 billion yuan, while introducing next year's net profit forecast to 1.38 billion yuan.