Citi conducts a 30-day upward catalyst observation on NJEC, target price 27 yuan, urging "Buy"

Citi released a report observing a 30-day upward catalyst for NJEC (00699.HK), citing its attractive risk-reward profile. Citi estimates that its H shares are currently trading at a forecasted price-to-earnings ratio of 11 times for next year, lower than other automotive parts peers. Additionally, Tesla's third-generation Optimus robot is expected to debut early next year. Considering NJEC's existing automotive parts partnerships and its rich product line of robotic components, the firm anticipates that the company is well-positioned to secure more Optimus component orders.

The firm expects NJEC's net profit margin to continue expanding, rising from 2.3% and 2.7% in the second and third quarters of this year, respectively, to an estimated 3.1% in the fourth quarter; target price is set at 27 HKD with a "Buy" rating