HK Stock Market Move | BOE VARITRONIX(00710) rose nearly 5% in early trading, with the company planning to increase the proportion of overseas revenue. Citigroup is optimistic about market share growth and gross margin recovery.

BOE VARITRONIX (00710) rose nearly 5% in early trading, rising 4.1% to HK$6.85 as of the time of publication, with a trading volume of 4.1839 million Hong Kong dollars. On the news front, BOE VARITRONIX, a subsidiary of BOE, recently unveiled over 60 innovative technology products and diverse IoT solutions at CES 2025, marking the first overseas launch of the "HERO" plan for application scenarios in the era of intelligent cars. Su Ning, Vice President of BOE Technology Group and CEO of BOE VARITRONIX, disclosed that overseas revenue contributed 42% in the first half of last year based on customer purchasing decisions, with plans to further increase this share to 50% in the future. Citigroup released a research report raising the target price of BOE VARITRONIX from HK$5.6 to HK$8.5, noting that the company's strategy focusing on the top ten automobile OEMs in China 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 of inventory write-offs are anticipated to improve gross margin. Looking forward to 2025, with the acceleration of the smart cockpit trend, Citigroup forecasts strong demand for automotive displays, with Chengdu factory capacity utilization expected to reach 70 to 80% by the end of 2025, supporting financial performance improvement.