Hu Lane Associate stock price target lowered to NT$200 by Nomura

Published 08/08/2025, 09:16
Hu Lane Associate stock price target lowered to NT$200 by Nomura

Investing.com - Nomura/Instinet lowered its price target on Hu Lane Associate Inc (TT:6279) to NT$200.00 from NT$209.00 while maintaining a Buy rating, citing foreign exchange losses that impacted second-quarter earnings.

The company reported second-quarter EPS of TWD0.80, which fell 73% quarter-over-quarter and 69% year-over-year, coming in 63% below analyst estimates due to over TWD300 million in foreign exchange losses. Sales reached TWD2,167 million, declining 7% quarter-over-quarter but increasing 9% year-over-year.

China sales, which represented 79% of total revenue, decreased 9% quarter-over-quarter but grew 14% year-over-year, while non-China sales accounting for 21% of revenue increased 1% quarter-over-quarter but fell 7% year-over-year.

Gross margin improved to 33.5%, up 1.8 percentage points quarter-over-quarter and 0.1 percentage points year-over-year, exceeding management’s target of flat quarter-over-quarter performance due to reduced material costs, stable utilization rates, and an improved product mix.

Nomura remains positive on Hu Lane’s second-half 2025 outlook, noting management expects continued year-over-year sales growth through market share gains in China and new product launches, including board connector products for its second-largest OEM customer in China.

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