HSBC initiates Yadea stock with Buy rating, sees 44% profit growth

Published 28/07/2025, 09:12
HSBC initiates Yadea stock with Buy rating, sees 44% profit growth

Investing.com - HSBC initiated coverage on Yadea (HK:1585) with a Buy rating and a price target of HK$18.00 on Monday.

The Hong Kong-based investment bank expects Yadea to achieve a 15% compound annual growth rate (CAGR) in sales volume and a 3% CAGR in average selling price (ASP) from 2024 through 2027.

HSBC forecasts these growth drivers will stem from Yadea’s efforts to capture additional market share while simultaneously upgrading its product mix.

The bank projects Yadea will improve its net profit margin from 5% to 8% during this period, benefiting from economies of scale in production and higher ASP levels.

Overall, HSBC anticipates Yadea will deliver an 18% revenue CAGR and a 44% net profit CAGR between 2024 and 2027.

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