Zhongtai International: Initiates coverage on Epiworld International (02726.HK) with "Buy" rating, target price HK$166.30

Zhitong Finance APP has learned that Zhongtai International issued a research report, initiating coverage on Epiworld International (02726.HK) with a "Buy" rating, based on a 22x 2027E price-to-sales valuation, with a target price of HK$166.30. The bank noted that Epiworld International's global silicon carbide epitaxy market share reached 31.6% in 2024, with technology, scale, and customer resources forming competitive barriers. As demand from AI and new energy vehicles increases, along with a rising share of large-size products and improving capacity utilization, the bank expects the company's revenue to rise 77.5%/107.2% year-on-year in 2026/2027, with gross margins increasing by 5.2/3.2 percentage points to 30%/32.5%.