In a report released on March 28, Alex NG from CMB International Securities maintained a Buy rating on BOE Varitronix (VARXF – Research Report), with a price target of HK$9.63.
Alex NG has given his Buy rating due to a combination of factors, including BOE Varitronix’s strong sales growth in FY24, which was driven by increased demand for automotive displays and systems, particularly in overseas markets like the US, Japan, and Korea. Despite a decline in net profit due to shifts in product mix, pricing pressures, and higher inventory costs, the company is poised for future growth.
Looking ahead to 2025 and beyond, BOE Varitronix plans to capitalize on its position as a leading global automotive display supplier by expanding its system product offerings, ramping up high-end auto display production, and continuing its overseas expansion efforts. The company’s strategic focus on R&D investment in AI and auto display technologies is expected to drive further growth. Consequently, Alex NG maintains a Buy rating, with a new target price reflecting these growth prospects.