Cutting Price Target to Reflect Headwinds from EV Shipment Weakness and Chipflation

研报英文原文证据摘录

Cutting Price Target to Reflect Headwinds from EV Shipment Weakness and Chipflation

'25 JAN '26 JUL '26 JUL '27

Key: Historical Stock Performance Current Stock Price Price Target

Source: Refinitiv, Morgan Stanley Research, Morgan Stanley Institutional Equities Division. The probabilities of our Bull,

Base, and Bear case scenarios playing out were estimated with implied volatility data from the options market as of 8

Jul 2026. All figures are approximate risk-neutral probabilities of the stock reaching beyond the scenario price in either

three-months’ or one-years’ time. View explanation of Options Probabilities methodology here

BULL CASE HK$50.00 BASE CASE HK$32.00 BEAR CASE HK$15.00

35x 2027e base case non-IFRS EPS 22x 2027e base case non-IFRS EPS 10x 2027e base case non-IFRS EPS

Smaller-than-expected memory price hikes Smartphone headwinds still on, new EV Rising geopolitical tension, weaker-than-

with rapid market share gain for premium launch a potential catalyst in 2H26: With expected new EV performance: Rising

smartphones: Smaller-than-expected surging memory cost, smartphone geopolitical tensions could result in key

memory price hikes would be a positive for headwinds are still there and investors are component supply issue or sales

smartphone gross margin. Rapid market monitoring the smartphone margin trend to performance in overseas countries.

share gains in premium smartphones might gauge the inflection point. We expect the Meanwhile, new EV launching in 2H26 is not

not only lift near-term revenue and earnings new EV launching in 2H26 to become a well received by the end market. If so, it

but also boost long-term revenue and catalyst while AIoT revenue is also likely to could have a negative impact on earnings,

margin expectations.