Citigroup: Blue Focus Technology's first quarter performance fell short of expectations, lowering the target price of A and H shares.

Citigroup released a research report stating that Blue Technology's first-quarter performance is below expectations, with management attributing weak performance to reduced purchases from customers due to rising memory prices and exchange losses. Management expects the impact of exchange losses to weaken in the coming quarters, and revenue from iOS foldable models will contribute from May onwards. Android demand may pick up in the second half of 2026. The bank has adjusted Blue Technology's 2026 net profit forecast down by 13% to 4.36 billion yuan due to first-quarter performance, while earnings forecasts for 2027 and 2028 remain largely unchanged; the target price for H shares has been lowered from 27 Hong Kong dollars to 25 Hong Kong dollars, with a "buy" rating; the target price for A shares has been lowered from 32 yuan to 30 yuan, with a "neutral" rating.