BOCI: Raises FORTIOR (01304) target price to HK$187.9, maintains "Buy" rating.

BOCI released a research report stating that it is optimistic about FORTIOR's (01304) proposed acquisition of Dutch sensor company ScioSense, and has raised its earnings forecasts to reflect robust first-half results and strong year-to-date end demand. The target price has been raised from HK$187.7 to HK$187.9, maintaining a "Buy" rating. The bank noted that combining sensing technology with motor control chips is expected to strengthen the company's integrated product development capabilities and support expansion into broader industrial, Siasun Robot&Automation, and automotive solutions. Considering the technology assets, customer relationships, and contingent payment arrangements, the bank views the transaction price as reasonable. The bank stated that ScioSense was close to breaking even in the first half, and after the transaction is completed, there remains room for improvement in procurement, operational efficiency, and customer development. As business integration gradually progresses, earnings recovery and product synergies are expected to support mid-line earnings per share growth. The bank now forecasts FORTIOR's 2026 earnings per share at RMB 3.34 and 2027 at RMB 4.64, which are 6% and 11% higher than previous forecasts, respectively.