Haitong International: Initiate coverage on OX Electrical (02580.HK) with "Outperform" rating, target price of HKD 21.30.

According to the Zhicheng Financial APP, Haitong International has released a research report stating that Aux Group's domestic market has excellent channel efficiency under the new retail model, while its overseas market OBM+ODM business is also progressing. With the expansion of the global air conditioning market, the company has ample room for growth and is expected to increase its market share. The company plans to distribute dividends at a rate of no less than 75% for the years 2025-2027. Based on the current stock price and corresponding net profit assumptions, the company's dividend yield in 2025 may exceed 10%, and a high dividend yield low valuation gives it a strong margin of safety. The bank expects the company's EPS in 2025-2027 to be 1.96 yuan/2.14 yuan/2.45 yuan, with corresponding year-on-year growth rates of 7%/9%/14%. Given a 10x PE valuation for the company in 2025, and based on current exchange rates, the target price for the company is 21.30 Hong Kong dollars, and it is given a "outperform the market" rating for the first time.