JP Morgan: Raised the target price for COWELL (01415) to HKD 48 and maintained the "Overweight" rating.

J.P. Morgan released a research report stating that COWELL (01415) saw a 33% year-on-year increase in net profit for the first half of the year, which was 17% higher than the bank's expectations, benefiting from better-than-expected orders for Apple products and improved yield efficiency. The bank believes that the market's concerns over potential weak demand and price pressure have been fully reflected. Considering the companys increased market share and efficiency improvements as key drivers for profit, it expects a year-on-year earnings growth of 28% and 15% for 2026 and 2027, respectively. The current stock price is only equivalent to a forecasted price-to-earnings ratio of 10 times for 2026, which is 40% lower than the historical average. Strong earnings growth is expected to support a reevaluation of the valuation, maintaining an "overweight" rating, with a target price raised from HKD 44 to HKD 48. J.P. Morgan pointed out that COWELL's stock price has fallen 9% year-to-date (compared to a 1% drop in the Hang Seng Index), primarily reflecting investors' concerns over weak potential demand and pricing pressure. The bank believes that with resilient demand, continued market share growth, and a reasonable valuation, the risk-reward profile is attractive.