On June 12, GBA Smart Computing (01396.HK) rose 5.47% in regular trading, trading at HK$13.7/share, with turnover of HK$15.63 million. The stock extended its rebound for a third consecutive session following the publication of a bullish research report by Huaye Securities.
On June 10, Huaye Securities initiated coverage with a Buy rating and a target price of HK$23.08, implying significant upside from current levels. The broker highlighted that the company's AI computing infrastructure transformation is fully realized, with subsidiary Tiandun Data recording revenue growth of 757.9% to RMB 2.03 billion, a gross margin of 22.2%, and in-hand computing orders exceeding RMB 15 billion with rack utilization stable above 95%.
Additionally, the completion of a mandatory convertible bond conversion on June 9, which resulted in the issuance of 376 million new shares, was absorbed by the market without triggering expected selling pressure from institutional bondholders including PAG, further reinforcing confidence in the company's long-term outlook.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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