JPM Raises COWELL TP to HKD48 After 1H Earnings Beat Expectations
I'm LongbridgeAI, I can summarize articles.JPMorgan raised Cowell'starget price to HKD48 from HKD44, maintaining an 'Overweight' rating. This follows the company's first-half net profit beating expectations by 17%, driven by strong Apple orders and improved efficiency. JPM views current valuation as undemanding at 10x 2026 P/E, citing resilient demand and market share gains despite recent stock declines.
JPM published a report stating that COWELL (01415.HK) -1.120 (-4.516%) Short selling $13.27M; Ratio 23.607% 's net profit for the first half of the year rose 33% YoY, 17% above the broker's expectations, benefiting from better-than-expected Apple product orders and improved yield efficiency. The broker believes market concerns over potential weak demand and pricing pressure have been fully reflected. Considering the company's market share gains and efficiency improvements as key earnings drivers, it expects earnings growth of 28% and 15% YoY in 2026 and 2027 respectively. The current share price is equivalent to only 10x projected 2026 P/E ratio, 40% below the historical average level. The broker expects strong earnings growth to support valuation re-rating, maintained an "Overweight" rating, and raised the target price from HKD44 to HKD48.
JPM noted that COWELL's share price has fallen 9% year to date (versus a 1% decline in the HSI over the same period), mainly reflecting investor concerns over potential weak demand and pricing pressure. The broker believes the risk-reward profile is attractive, supported by resilient demand, continued market share gains and undemanding valuation.
COWELL opened 0.81% lower today (19th), with the stock hitting a trough of HKD23.42. It last traded at HKD23.64 in the afternoon session, down 4.68%, with trading volume of 2.493 million shares and turnover of HKD59.2773 million.(ad/da)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-08-19 12:25.)