CVTE (002841 CH): Buy: Profitability likely to improve to a new level

研报英文原文证据摘录

CVTE (002841 CH): Buy: Profitability likely to improve to a new level

are 85%, 62% and 51% above consensus. EV/EBITDA (x) 31.2 12.4 10.0 8.3

ROE (%) 5.9 14.7 16.0 16.6

Earnings estimate revisions: we raise our 2026-2028 net profit estimates by 121.5%,

52-WEEK PRICE (CNY)87.7% and 71.5%. On revenue: We raise our 2026-2028 revenue estimates by 14.3%,

12.9% and 11.2% mainly because (1) we raise our 2026-2028 revenue estimates of 81.00

LCD main control board as the company is successfully passing the raw material 53.50

price hike to downstream clients; (2) we raise our 2026-2028 revenue estimates for

automotive and power electronics given better-than-expected client expansion and 07/25 01/26 07/2626.00

demands. On gross margin: We raise our 2026 and 2027 gross margin by 0.9ppt Target price: 75.40 High: 52.45 Low: 32.19 Current: 52.45

and 0.4ppt on the back of better-than-expected gross margin improvement of its LCD Source: LSEG IBES, HSBC Qianhai Securities estimates

main control board.

We expect the gross margin of CVTE’s LCD main control board to remain elevated. Bruce Sun* (Reg. No. S1700522090001)

Analyst, A-share Media & Internet Research

While its gross margin may face some pressure as the company’s previous low-cost HSBC Qianhai Securities Limited

inventory is gradually depleted, we believe downside pressure is manageable given (1) as bruce.z.j.sun@hsbcqh.com.cn

+86 10 5795 2357

the leading supplier with a 33.13% market share in LCD main control board market in

2025 (source: company data), CVTE established long-standing relationships with major Jing Han* (Reg. No. S1700518080001)

Head of A-share Media & Internet Research

component suppliers such as Samsung and MedieTek, ensuring a competitive position in HSBC Qianhai Securities Limited