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VGT (02476.HK) Surges Over 7% as JPM Initiates Overweight with TP HKD600
Recommend 22 Positive 33 Negative 12 |
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VGT (02476.HK) opened 1.95% higher today (9th) and once peaked at HKD368.4. It is currently trading at HKD362.8, up 7.21%, with turnover of 2.9387 million shares, involving HKD1.059 billion. JPM released a research report initiating coverage on VGT's H shares with an Overweight rating and a TP of HKD600 (based on 24x the average forecast EPS for FY2026-FY2027). The broker noted that, supported by robust artificial intelligence (AI) demand and significant growth in product content value, alongside specification upgrades driving high-performance computing development, it is optimistic about global demand expansion for printed circuit boards (PCB), particularly high-end PCBs. Leveraging its technological competitive advantages, large-scale production capacity and long-term partnerships with global tech leaders, VGT is expected to be a core beneficiary of this expansion cycle. JPM stated that VGT has established a leading position in the AI PCB segment. According to Frost & Sullivan data, the company ranked first globally in 1H25 in both high-end multi-layer PCBs (MLPCB, 14 layers and above) and high-end high-density interconnect boards (HDI, high layer count). The broker believes the company will directly benefit from NVIDIA Corporation (NVDA.US)'s platform upgrade cycle from Blackwell to Rubin/Rubin Ultra. During the platform transition period, VGT is expected to remain a core supplier for HDI and MLPCB projects, providing key boards including compute trays, mid-planes and back-planes. In addition, strengthened cooperation with ASIC customers such as Google on TPU projects is expected to generate additional earnings growth momentum for the company in the coming years. The broker added that VGT plans to invest up to RMB18 billion in capital expenditure for property, plant and equipment in 2026 (compared with RMB6.4 billion in 2025). The substantial capacity expansion plan reflects a clear and positive order outlook. JPM forecasts the company’s net profit to reach RMB9 billion, RMB17.2 billion and RMB25.6 billion for FY2026, FY2027 and FY2028, respectively, implying a CAGR of 81% from FY2025 to FY2028. The strong earnings release is expected to serve as a catalyst for further share price upside. (ad/da) Auto-translated by AI This article was automatically translated by AI, the original language 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. More Details
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