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<Research> BofAS Raises WUXI LEAD (00470.HK) TP to HKD64, Company Guides for Margin Improvement
Recommend 5 Positive 7 Negative 1 |
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BofAS said in a research report that WUXI LEAD (00470.HK) recorded 1Q revenue of RMB3.7 billion, up 19% YoY but down 8% QoQ, 15% below the brokers expectations, as revenue recognition for battery equipment was slower than expected. Gross margin was 33.6%, down 0.9 ppts YoY and 1.3 ppts QoQ, below the brokers forecast of 35.5%, due to the recognition of certain low-margin solar equipment orders during the period. Net profit reached RMB405 million, up 11% YoY and 7% QoQ, but 14% below the brokers expectations. The company expects gross margin to improve QoQ over the next few quarters as high-margin battery equipment orders are recognized. Taking into account the 1Q results, the broker lowered its earnings forecasts for 2026 and 2027 by 2% and 1%, respectively. However, it raised the TP from HKD57 to HKD64 and reiterated its Buy rating.(ss/u) This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. Auto-translated by AI AASTOCKS Financial News |
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