Bank of China International: Raising the target price of FORTIOR (01304) to HK$187.9 to maintain the “buy” rating

The Zhitong Finance App learned that Bank of China International released a research report saying that it is optimistic that FORTIOR (01304) will acquire Dutch sensor company ScioSense, while raising profit forecasts to reflect steady performance in the first half of the year and strong terminal demand since the beginning of the year. The target price was raised from HK$187.7 to HK$187.9, maintaining a “buy” rating.

The bank pointed out that combining sensing technology with motor control chips is expected to strengthen the company's integrated product development capabilities and support the expansion of a wider range of industrial, robotic and automotive solutions. The bank considered the transaction reasonable in view of technical assets, customer relationships and contingent payment arrangements.

The bank said that ScioSense was close to balance of payments in the first half of the year, and there is still room for improvement in procurement, operational efficiency and customer development after the transaction is completed. As business integration gradually progresses, profit recovery and product synergy effects are expected to support mid-tier earnings per share growth. The bank currently expects FORTIOR to earn 3.34 yuan per share in 2026 and 4.64 yuan in 2027, which is 6% and 11% higher than the previous forecast, respectively.