Jefferies upgrades Shanghai Liangxin Electrical stock to Buy on AIDC growth

Published 25/08/2025, 06:06
Jefferies upgrades Shanghai Liangxin Electrical stock to Buy on AIDC growth

Investing.com - Jefferies has upgraded Shanghai Liangxin Electrical Co Ltd (SHE:002706) stock rating from Hold to Buy, while raising its price target to RMB13.00 from RMB8.60.

The upgrade follows Shanghai Liangxin’s first-half 2025 results, which Jefferies indicates gave management increased confidence in a double-digit revenue growth recovery for 2025.

The investment firm expects stable growth exceeding 15% in both revenue and net profit beyond 2025, driven by growing import substitution in the company’s existing business lines.

Jefferies also highlighted Shanghai Liangxin’s new smart power distribution device and system business, which is penetrating both domestic and overseas artificial intelligence data center (AIDC) markets.

The firm’s upgrade reflects "improved growth visibility amid booming global AIDC capex," suggesting Shanghai Liangxin is well-positioned to benefit from increased capital expenditure in the AIDC sector.

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