Guotai Junan Securities: Initiates "Buy" rating on COWELL with a target price of HKD 48.38
Guojin Securities initiates coverage on COWELL with a "Buy" rating and a target price of HKD 48.38. It is expected that the net profit attributable to the parent company for 2025-2027 will be USD 191 million, USD 225 million, and USD 336 million, with P/E ratios of 19 times, 17 times, and 11 times, respectively. The company is deeply tied to Apple, with revenue from Apple accounting for 98.1% in H1 2025. Strong demand for iPhones is expected to provide a solid demand foundation for the company. With the exit of major competitor Sharp, the supply chain landscape for rear camera modules is being reshaped, and the company is expected to gain more market share
According to the Zhitong Finance APP, Guojin Securities has released a research report stating that it has initiated coverage on COWELL (01415) with a "Buy" rating. It is expected that the company's net profit attributable to the parent company will reach USD 191 million, USD 225 million, and USD 336 million from 2025 to 2027, corresponding to PE ratios of 19 times, 17 times, and 11 times. The company is given a 24 times PE for 2026, corresponding to a target market value of HKD 41.99 billion and a target price of HKD 48.38 per share.
The company is deeply tied to Apple, possessing customer stickiness advantages. In the first half of 2025, revenue from Apple accounted for 98.1% of the company's total revenue. Customer stickiness stems from two major advantages: first, relying on Luxshare Precision's industrial chain resources, which creates significant synergy; second, continuous capital expenditure investments that precisely meet Apple's requirements for supply chain companies in terms of production capacity and rapid response.
The report states that iPhone demand is strong, with approximately 4 million units activated domestically since its launch until October 12. It is expected that the shipment volumes of iPhones and iPads will enter a stable growth channel, providing a solid demand foundation for the company. The iPhone camera module continues to iterate and upgrade annually, which is a clear value growth mainline. The value of the camera module for the iPhone Pro Max model has increased by about USD 37 from the 13 series to the 16 series. The newly launched 17 Pro Max telephoto lens has significantly upgraded from 12 million pixels in the 16 Pro Max to 48 million pixels. The firm believes that the annual increase trend in unit value will continue, enhancing the company's revenue.
The firm indicated that after major competitor Sharp gradually exits the rear camera module supply chain, the supply chain landscape for rear camera modules has been reshaped. Apple has a demand to balance the supply chain and reduce costs. Coupled with the company's active capacity expansion in recent years, the firm expects the company to gain more market share in ultra-wide-angle and periscope telephoto modules and is expected to enter the higher value main camera field by 2027, opening up new growth space
