Glonghui, March 25 | CMB International released a report stating that Ruisheng had revenue of 20.4 billion yuan and net profit of 740 million yuan last year, both higher than market expectations, mainly benefiting from exchange earnings and other revenue. The gross profit margin for the period was 16.9%, which was roughly in line with expectations. The gross margin recovered to 19.2% in the second half of last year, an increase of 1.4 percentage points year-on-year, and 5.1 percentage points higher than in the first half of the year. The bank mentioned that Ruisheng management is looking forward to a 10% to 15% year-on-year increase in sales this year (including a 20% to 30% year-on-year increase in PSS), mainly benefiting from market recovery, specification upgrades, and wafer-grade glass (WLG) improvements; integration with PSS brings synergy effects to the automotive business; the release of new models will benefit Ruisheng's acoustic/haptic/case/hinge business and increase market share; artificial intelligence (AI) phones are upgraded in terms of acoustics and cooling components. Furthermore, the bank raised Ruisheng's profit forecast for this year and next by 29% and 50%, respectively, to reflect strong PSS transactions, profit margins and business prospects. The bank maintained its “hold” rating, and the target price was raised from HK$14.04 to HK$22.44. The outlook is steady.