iRay Technology (688301 CH): Buy: Fundamentals remain strong; recent pullback resets risk-reward profile

研报英文原文证据摘录

iRay Technology (688301 CH): Buy: Fundamentals remain strong; recent pullback resets risk-reward profile

5x average PE since listing in 2020. We think the current

valuation looks attractive given the potential growth from CT product expansion and 52-WEEK PRICE (CNY)

equipment relating to PCB and semiconductor test. 160.00

Revising down medical-related revenue while industrial segment remains intact. 104.50

We cut 2026-28 medical-related revenue forecasts by 2-12% due to weaker-than-expect 49.00

07/25 01/26 07/26

domestic medical device procurement amount, which was partially offset by solid growth Target price: 143.00

High: 146.98 Low: 60.55 Current: 98.48

in exports to emerging markets and share gain in existing overseas customers.

Source: LSEG IBES, HSBC Qianhai Securities estimates

Industrial detector sales remain robust driven by battery OEMs’ capex investment

and replacement demand from 2022 installment cycle. Therefore, we revise down

Amy Hu* (Reg. No. S1700520090001)

2026-28 revenue estimates by 2.0%, 4.1% and 4.4%, and cut net profit estimates by Analyst, A-share Industrials & Renewables Research

1.7%, 4.6% and 4.9%. HSBC Qianhai Securities Limited

ruo.lin.hu@hsbcqh.com.cn

+86 755 8898 3408

Maintain Buy rating and cut TP to RMB143.00 from RMB157.86. We continue to

use a target PE multiple to value the stock. We cut our target PE to 42x from 44x, at a

* Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is

premium to industrial testing machine peers’ average of 35x 2026-27 PE (Bloomberg not registered/ qualified pursuant to FINRA regulations

consensus, previously 38x) as we see industrial x-ray solution its main growth driver.

We think our target multiple is justified given our 2026-28e earnings CAGR of 25%