Credit Suisse Raises Target Price for Qiutai Technology to HK$3.2
Zhitong Finance Network – Credit Suisse has released a research report maintaining a “neutral” rating for Qiutai Technology (01478) and raising its target price from HK$3 to HK$3.2. The report also highlights the raised earnings per share for 2023-25, reflecting improvements in product mix, reduced operating expenses, and increased non-recurring income.
Despite Qiutai Technology‘s net profit in the first half of the year dropping 86% year-on-year to RMB 23 million, which was worse than the earlier profit warning forecast, management remains optimistic. They mentioned that the headwinds that negatively impacted the company’s gross margin in previous quarters have largely disappeared.
The research report acknowledges the factors contributing to the positive changes in Qiutai Technology‘s financial outlook. These include the improvement in the product mix, indicating a better selection of products offered to customers. Additionally, a decrease in operating expenses and an increase in non-recurring income are further bolstering the company’s profitability.
Credit Suisse’s “neutral” rating suggests a cautious stance, acknowledging the challenges faced by Qiutai Technology. However, the raised target price demonstrates their belief in the company’s ability to overcome these challenges and generate better returns for investors.
It is important to note that the content, data, and tools provided in this article are for informational purposes only and should not be considered as investment advice. The stock market carries inherent risks, and individuals should exercise caution when making investment decisions.
Investors and individuals in the financial community are advised to thoroughly research and consider their options before making any investment choices. Sound judgement and careful analysis are crucial in navigating the volatile stock market environment.