Citigroup: Reiterates "Buy" rating on NWS Holdings Limited (01316.HK) and raises target price to HK$8

Wisdom Financial APP learned that Citigroup released a research report stating that it has raised its profit forecast for Nissin Electric (01316.HK) for the years 2025 to 2026 by 6%, and has raised its target price from 4.2 HKD to 8 HKD, based on a Price/Earnings Growth ratio of 0.7 (PEG). The bank took into account Nissin Electric's first quarter order volume increasing by 60% year-on-year, strong momentum, and the support from orders for Electronic Mechanical Braking (EMB) and Wire Control Braking products. Revenue growth is in line with expectations, and the impact of U.S. tariffs is lower than expected. The bank predicts a compound annual growth rate of 29% for the company's net profit from 2025 to 2027, and with the strong recovery in group profitability, believes that the valuation should be raised; it reiterates a "buy" rating.