JP Morgan: Bullish on AAC TECH (02018) new AI project as a future catalyst, maintains "Overweight" rating.
The bank continues to be optimistic about the company, due to its diverse business operations, expanding into the cooling market and obtaining an advanced AI hardware project from a leading American Cloud Service Provider (CSP). If demand increases in 2027, it is believed to become the next catalyst for growth.
JPMorgan Chase released a research report stating that the management of AAC TECH (02018) holds a positive outlook on the prospects for 2026, benefiting from stable growth in the cooling and automotive businesses. The bank continues to have a positive view on the company, as its business is diversified, expanding beyond the cooling market to include an advanced AI hardware project with a major US cloud service provider (CSP). If demand increases in 2027, it is believed to be the next catalyst. Taking into account the new contribution from the CSP project, the revenue forecast for 2027 has been slightly increased. A target price of HK$65 is set and the "hold" rating is maintained.
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