JPMorgan has released a research report indicating that COWELL's first-half net profit rose 33% year-on-year, exceeding the firm's expectations by 17%, driven by better-than-anticipated Apple product orders and improved yield efficiency. The bank believes market concerns over potential demand weakness and pricing pressure have been fully priced in, and given the company's market share gains and efficiency improvements as key earnings drivers, it projects 28% and 15% year-on-year profit growth for 2026 and 2027, respectively.
At current levels, the stock trades at just 10 times the 2026 forecast price-to-earnings ratio, a 40% discount to its historical average, and JPMorgan expects robust earnings growth to support a valuation re-rating. The firm maintains an "Overweight" rating and has raised its target price from HK$44 to HK$48.
JPMorgan notes that COWELL's shares have declined 9% year-to-date, compared with a 1% drop in the Hang Seng Index over the same period, largely reflecting investor worries about soft demand and price reduction pressures. However, the bank believes the risk-reward profile is attractive, backed by resilient demand, continued market share expansion, and an undemanding valuation.
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