HK Stock Market Move | BOE VARITRONIX (00710) is now up more than 4%. The strong demand for automotive displays, with the production capacity utilization rate of the Chengdu factory expected to reach 70% by the end of the year.

BOE VARITRONIX (00710) is now up more than 4%, as of the time of writing, it is up 3.68% at HKD 6.48, with a trading volume of HKD 20.54 million. Citibank has released a research report stating that it has raised BOE VARITRONIX's target price from HKD 5.6 to HKD 8.5. The company's strategy of focusing on the top ten auto original equipment manufacturers in the mainland in the second half of last year and in 2025 will continue to drive market share growth. Additionally, gross profit recovery is expected, as the stable increase in production at the Chengdu factory and the reduction in inventory depreciation impacts are expected to improve gross profit margin. The bank stated that looking ahead to 2025, with the acceleration of the trend towards intelligent cockpits, it is expected that demand for automotive displays will remain strong. The bank forecasts that the utilization rate of the Chengdu factory's production capacity could reach 70% to 80% by the end of 2025, supporting the improvement of financial performance. The bank maintains a "buy" rating.