Daiwa Initiates IMPRO PRECISION at Buy with TP at HKD11
I'm LongbridgeAI, I can summarize articles.Daiwa initiated coverage on IMPRO PRECISIONwith a Buy rating and HKD11 target price. The broker highlights the company's transformation into a precision engineering platform for US AI data centers, driven by high-horsepower engine business growth and new Mexico plant production. Daiwa forecasts strong revenue CAGR of 36% from 2026-2028, citing valuation re-rating catalysts.
Daiwa issued a research report initiating coverage on IMPRO PRECISION (01286.HK) +0.105 (+1.263%) Short selling $776.30K; Ratio 4.592% with a Buy rating. The broker said the company is transforming from a traditional foundry enterprise into a precision engineering platform for US artificial intelligence data centers (AIDC). Its high-horsepower engine business and commencement of production at its Mexico plant are expected to become catalysts for valuation re-rating. Based on its 2027 EPS forecast of HKD0.57 and discounting six months using a weighted average cost of capital of 8%, Daiwa assigned a target price of HKD11.
The broker noted that the high-horsepower engine business remains a key AI beneficiary segment. IMPRO PRECISION's related revenue in 2025 reached HKD1.13 billion, up 43.3% YoY, accounting for 22.1% of group revenue. Management disclosed that 55% to 60% of the business was related to data center demand. Daiwa currently forecasts IMPRO PRECISION's high-performance engine revenue for 2026 to 2028 to reach HKD1.41 billion, HKD2.04 billion and HKD2.86 billion respectively, with CAGR expected at 36%. (gc/da)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-08-10 12:25.)