Bank of America Securities released a report upgrading Sun Yuet (02382.HK) from 'Neutral' to 'Buy', citing upgrades to the flagship model specifications and improvements in product mix driving margin recovery. With the industry trend turning positive, the bank expects the company's profits to recover and continue to grow this year, with a compounded annual growth rate of 25% from 2024 to 2026.

Bank of America Securities has raised its profit forecast for Sun Yuet in 2024-2026 by 20-27% to reflect improved profit margins, and has raised its target price from 51 yuan to 67 yuan after adjusting its valuation base, which is equivalent to a PE ratio of 25 times in 2025, close to the historical trading average and matched with the rising cycle from 2019 to 2020. Recent catalysts include potential earnings surprises and half-year performance announcements.