HSBC upgrades Han’s Laser stock rating to Buy on strong profit growth

Published 06/08/2025, 09:56
HSBC upgrades Han’s Laser stock rating to Buy on strong profit growth

Investing.com - HSBC upgraded Han’s Laser Technology Industry Group Co Ltd. (SHE:002008) from Hold to Buy on Wednesday, while significantly raising its price target to RMB35.10 from RMB22.90, implying 33% upside potential.

The upgrade comes as HSBC revised its financial projections for the Chinese laser equipment manufacturer, adjusting revenue estimates by -3% for 2025 and +8% for 2026, resulting in an 11% lower 2025 net profit estimate but an 11% higher 2026 estimate.

HSBC based its new valuation on a PEG (price-to-earnings growth) approach, rolling its valuation base year forward to 2026 from 2025, and deriving an implied target PE of 24.4x, up from the previous 22.1x.

The investment bank cited Han’s Laser’s expected 2025-2027 net profit compound annual growth rate (CAGR) of 30% as a key factor in its decision, though this represents a decrease from the previously forecasted 2024-2026 CAGR of 37%.

HSBC calculated its new target price using its 2026 estimated earnings per share of RMB1.44, compared to its previous calculation based on 2025 estimated EPS of RMB1.04, while also adjusting the industry average PEG from 0.6x to 0.8x in its valuation model.

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