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Investing.com - Morgan Stanley upgraded Sinoma Science & Technology Co. Ltd (SH:002080) from Equalweight to Overweight on Wednesday, setting a price target of RMB48.22.
The upgrade reflects expectations of a rebound in the company’s wind blade business, with Morgan Stanley forecasting 43.0% shipment growth and a 4 percentage point year-over-year gross profit margin expansion to 17.5% in 2025.
Morgan Stanley highlighted a notable demand surge in special electronic fabrics driven by booming AI infrastructure build-outs, noting that Sinoma plans to expand its production capacity from the current 24 million meters to 118 million meters by 2027.
The research firm pointed to Sinoma’s leading position in the special electronic fabrics market, where it holds approximately 70% global market share in both Low-Dk and Low-CTE electronic fabrics, key raw materials for printed circuit boards used in AI computing applications.
The price target implies a 2026 estimated price-to-earnings ratio of 28.3x, compared to Sinoma’s historical peak valuation of 36.2x, with the stock currently trading at 21.3x P/E for 2026 and a price-to-earnings growth ratio of 1.1x.
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