Bank of America Securities raised its earnings forecasts for Shenzhou International Group Holdings Limited unsponsored adr (02313.HK) by 4% and 3% for the next two years to reflect the company's better-than-expected orders and profit margin recovery, also driving the target price up 4% to HKD 93.5. The bank expects the company's revenue and net profit in 2024 to rise by 14.5% and 21%, respectively, which is consistent with the market, and reiterates a 'buy' rating.

Bank of America identified three factors to watch, including the bank's belief that there may be room for upside to current market expectations and is waiting for the August earnings release; some investors believe that the maximum net profit after tax in 2024 will be CNY 6 billion, but the bank is more cautious, believing that items such as tax rates and government subsidies may offset some of the basic business advantages; investors are concerned about its valuation, although the bank believes the current premium is reasonable. The bank pointed out that if the company's performance is strong in the first half of the year, its performance in 2025 will be the main focus.