Bank of America Securities lowers the target price for BLACK SESAME to 20 yuan, reiterating a "Neutral" rating

Bank of America Securities published a research report stating that BLACK SESAME (02533.HK) benefited from strong ADAS chip shipments last year, with total revenue increasing by 73% year-on-year, exceeding market and the bank's forecasts by 2% and 7% respectively; adjusted net loss narrowed by 18% year-on-year to RMB 1.08 billion.

The bank indicated that based on the improved growth prospects for BLACK SESAME, it raised the company's revenue forecasts for 2026 and 2027 by 8% to 10%, but reduced the adjusted net profit forecast by 46% to 89% considering the increase in R&D expenses. The bank lowered the company's target price from HKD 24.7 to HKD 20, reiterating a "Neutral" rating, stating that the company has strong revenue growth momentum due to the launch of new products, but the visibility of achieving breakeven in the short term is relatively low