Goldman Sachs: Chuangke Industrial (00669)'s profit margin performance was better than expected to increase earnings estimates and target prices

The Zhitong Finance App learned that Goldman Sachs released a research report saying that Chuangke Industrial (00669)'s revenue for the first half of 2026 was 8.292 billion US dollars, up 6% year on year, in line with expectations. Operating profit was US$815 million and net profit of US$738 million, up 16% and 18% year on year, respectively, and 6% and 3% higher than the bank's forecast. Gross margin increased 2.6 percentage points year-on-year to 42.9% during the period. Operating margin and net profit margin were 8.4% and 7.7% respectively, both slightly better than the forecast. In response to better-than-expected profit margin performance, Goldman Sachs raised ChuangTech's 2026-2030 earnings forecast by 3% to 7%, and raised the target price from HK$152.4 to HK$160.7, corresponding to the 2027 price-earnings ratio of about 22 times, maintaining a “buy” rating.