Komo: First Hiying-W (00625) “Gain” rating target price of HK$50

The Zhitong Finance App learned that J.P. Morgan Chase released a research report stating that it covered Xiying-W (00625) for the first time to “increase” its rating. The target price is HK$50 by the end of 2027. The bank pointed out that Xiying's stock price has pulled back 29% since the IPO, and the Hang Seng Index fell 5% during the same period. Although it is under pressure in the short term, the trough is only temporary.

Xiaomo said that in the face of US tariff adjustments and the Middle East conflict, Xiyin is still adding new customers, and order volume continues to grow; as costs related to the Middle East conflict decline and EU business shifts to local stocking, revenue will stabilize from the fourth quarter, and profits will begin to recover in the first quarter of 2027. The bank estimates that the company's adjusted net profit will reach 985 million US dollars this year and reach 1.97 billion US dollars in 2027; the target price corresponds to 9 times the 2027 projected price-earnings ratio plus cash value. It also believes that the market's valuation of the company's operations is quite limited, and the valuation ratio is expected to remain low.