PRODUCTIVE TECH (00650) rose more than 45% in afternoon trading, bringing its cumulative gain over two trading sessions to over 70%. At the time of writing, the stock was up 40.32% to HK$0.435, with a turnover of HK$32.98 million. A research report from Huaxin Securities dated April 10 initiated coverage on PRODUCTIVE TECH with a "Buy" rating. The report stated that the company is transforming from a traditional energy and investment firm into a high-tech manufacturer achieving breakthroughs in domestic production of high-end semiconductor wet cleaning equipment. The company's core business is positioned at the intersection of two major trends: the expansion of domestic wafer fabs and the localization of semiconductor equipment. Considering the early stage of its new semiconductor products, such as LPCVD and tank cleaning equipment, and its strategic position in two critical segments—high-end semiconductor cleaning and thin-film deposition—the report anticipates that as the equipment undergoes large-scale validation in wafer fabs and enters volume delivery, PRODUCTIVE TECH will reach an inflection point in profitability by fiscal year 2027. The company's profit margin is expected to enter an upward trajectory, with a significant potential increase in net profit margin, reflecting strong long-term growth prospects.
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