According to Zhitong Finance APP, ZJ INNOLIGHT (03308) rebounded nearly 4% in afternoon trading, rising 3.39% as of press time to HK$641, with turnover of HK$2.241 billion.
On the news front, on the evening of November 3, ZJ INNOLIGHT released a record of investor relations activities, responding to recent market rumors about overseas customers cutting orders, lowering demand, and foreign brokerage firms lowering target prices. The company stated that the vast majority of customers have not revised down their demand or orders, and customer demand remains strong. Regarding rumors that a certain foreign brokerage firm lowered the company's rating and target market value, the company has verified with that foreign brokerage firm, which stated that it still maintains its rating on the company and there is no situation of lowering the rating or target price. Citi maintains a "Buy" rating on ZJ INNOLIGHT H-shares with a target price of HK$1,394.
The bank believes that ZJ INNOLIGHT A-shares and H-shares fell 12.7% and 10.9% respectively on November 3, which is believed to be related to investor concerns about order cuts, but management has clarified that the company has no widespread order cuts, with only limited structural adjustments by individual customers. Citi believes that the related stock price adjustment may be excessive, and the company's fundamentals remain solid, but the stock price is being dragged down by cooling sentiment in the artificial intelligence market.
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