CICC: Significantly raises the target price of MORIMATSU INTL by 50% to HKD 12, rating "Outperform the industry"
CICC released a research report stating that due to the upward shift in industry valuation, combined with the company's benefits from the global manufacturing shift and the long-term growth potential opened up by the development of high-tech industries such as AI, it has raised the target price for MORIMATSU INTL by 50% to HKD 12, with a rating of "outperform the industry." The report pointed out that MORIMATSU INTL, a provider of core equipment, process systems, and intelligent factory solutions, had a revenue of RMB 2.687 billion in the first half of the year, a year-on-year decrease of 22.7%; the net profit attributable to the parent company was RMB 340 million, a year-on-year decrease of 10.1%. The performance in the first half of the year met market expectations. The report believes that this is mainly due to the order confirmation cycle of about 9 to 14 months, while new orders signed last year fell by 23%, and the backlog of orders decreased by 10%, along with the impact of the suspension of certain local projects in China on revenue recognition. The report stated that due to the time required for the delivery confirmation of certain projects, it has lowered the group's net profit forecast for this year by 27.7% to RMB 740 million and introduced a net profit forecast for next year of RMB 937 million for the first time
According to the Zhitong Finance APP, China International Capital Corporation (CICC) released a research report stating that due to the upward shift in industry valuation, combined with the company's benefits from the global manufacturing shift and the long-term growth potential opened up by the development of high-tech industries such as AI, it has raised the target price for MORIMATSU INTL (02155) by 50% to HKD 12, with a rating of "outperforming the industry."
The report pointed out that MORIMATSU INTL, a provider of core equipment, process systems, and digital factory solutions, had a revenue of RMB 2.687 billion in the first half of the year, a year-on-year decrease of 22.7%; the net profit attributable to the parent company was RMB 340 million, a year-on-year decrease of 10.1%. The performance in the first half of the year met market expectations. The report believes that this is mainly due to the order confirmation cycle being about 9 to 14 months, while new orders signed last year fell by 23%, and the backlog of orders decreased by 10%, along with the impact of the suspension of certain local projects in China on revenue recognition.
The report stated that due to the time required for the delivery and confirmation of certain projects, the group's net profit for this year has been revised down by 27.7% to RMB 740 million, and the net profit for next year has been introduced for the first time at RMB 937 million
