(Source: Financial News)

The bank believes that supported by resilient demand, ongoing market-share gains, and a valuation that is not expensive, the risk-reward profile is attractive.

On August 20, JPMorgan released a report saying that GoWeij Electronics (01415.HK) saw its net profit for the first half rise 33% year-on-year, which was 17% higher than the bank’s forecast. The outperformance was driven by Apple product orders coming in better than expected and improvements in yield and efficiency. The bank believes market concerns about weak potential demand and price pressure have already been sufficiently reflected. Given that the company’s market-share gains and efficiency improvements are the key drivers of earnings, it expects net profit to grow year-on-year by 28% in 2026 and 15% in 2027. At present, the share price only implies a forward P/E ratio of 10 times for 2026, which is 40% below the historical average. The bank expects strong earnings growth to support a valuation re-rating and maintains a “Buy/Overweight” rating. It has raised its target price from HK$44 to HK$48. The bank believes that supported by resilient demand, ongoing market-share gains, and a valuation that is not expensive, the risk-reward profile is attractive.