HK Stock Market Move | COWELL (01415) rose more than 7% JP Morgan expects the company to achieve strong profit growth in the next two years.

COWELL (01415) rose more than 7%, as of the time of writing, rising by 7.28% to HK$29.76, with a turnover of HK$2.47 billion. On the news front, J.P. Morgan released a research report stating that in the fourth quarter of last year, COWELL's stock price underperformed the Hang Seng Index, believed to be due to market concerns about rising memory prices leading to potential weakening of iPhone demand. However, the bank believes that the market reaction is excessive, with their research indicating resilience in this year's orders, and they expect electronic manufacturing services shipment volume to grow by 8% year-on-year in the first half of the year. At the same time, the bank believes that the adjusted iPhone product line in the second half of the year will benefit COWELL, as it has a higher proportion of business for the Pro and Pro Max models, and its market share continues to expand. The bank also predicts that the company will gain additional market share in the main rear camera module sector by 2027. They have raised their profit forecast for 2025 to 2027 by 3% to 9%, expecting profits to grow by 23% and 26% year-on-year in 2026 and 2027, and believe that the company's valuation should be reevaluated, reaffirming a "buy" rating with a target price of HK$44.