Sinolink: Initiates COWELL (01415) with a "buy" rating, target price of HK$48.38.

Sinolink released a research report stating that it covers COWELL (01415) for the first time, giving it a "buy" rating. It is predicted that the company's net profit attributable to shareholders will reach $191 million, $225 million, and $336 million in 2025-2027, corresponding to PEs of 19 times, 17 times, and 11 times. The company is given a 24 times PE for 2026, corresponding to a target market value of 41.99 billion Hong Kong dollars, with a target price of 48.38 Hong Kong dollars per share. The company is deeply tied to Apple, with a competitive advantage in customer loyalty. In the first half of 2025, revenue from Apple accounted for 98.1% of the company's total revenue. Customer loyalty stems from two major advantages leveraging the resources of Luxshare Group's industry chain and continuous capital expenditure to accurately meet Apple's requirements for supply chain enterprises in terms of production capacity and rapid response. The report states that iPhone demand is strong, with approximately 4 million units activated nationwide since the launch until October 12. It is expected that iPhone and iPad shipments will enter a stable growth channel, providing a solid demand base for the company. The continuous iteration and upgrade of the iPhone camera module is a clear value growth trend. The value of the camera module for the iPhone Pro Max model has increased by approximately $37 from the 13 series to the 16 series. The latest 17 Pro Max telephoto lens has significantly upgraded from 12 million pixels on the 16 Pro Max to 48 million pixels. The bank predicts that the trend of increasing value per unit will continue, increasing the company's revenue. The bank indicates that with Sharp gradually exiting the rear camera module supply chain, the landscape of the rear camera module supply chain is being reshaped. Apple has the need to balance the supply chain and reduce costs, combined with the company's recent active expansion of production capacity, the bank predicts that the company is likely to gain more market share in ultra-wide-angle and periscope telephoto modules. It is also expected to enter the higher value main camera field in 2027, opening up new growth opportunities.