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Investing.com - HSBC has upgraded Thundersoft (SHE:300496) from Hold to Buy and raised its price target to RMB90.00 from RMB57.00, citing stronger-than-expected growth in the company’s overseas IoT business.
Thundersoft’s share price has increased 32% year-to-date, outperforming the CSI 300 index which rose 15% during the same period, following the company’s second-quarter earnings beat in 2Q25.
The company reported 50% year-over-year revenue growth and 384% year-over-year net profit growth for the quarter, exceeding market expectations primarily due to its overseas IoT business performance.
HSBC noted it had previously maintained a Hold rating due to concerns about pricing pressure and AI R&D investment potentially constraining short-term earnings, but acknowledged it "underestimated the magnitude of on-device AI IoT demand growth."
The investment bank has raised its 2025-27 revenue and earnings estimates for Thundersoft, expressing increased confidence in the company’s IoT revenue growth prospects given industry demand tailwinds and Thundersoft’s expertise in integrating large models in operating systems and chips.
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