CMB International: First Pay Hantian Tiancheng (02726) “Buy” Rating Target Price HK$161.18

The Zhitong Finance App learned that CMB International released a research report saying that the silicon carbide epitaxial film industry is shifting from capacity expansion to competition for effective production capacity, cost control, and customer certification capabilities. As a global epitaxial film leader, Hantian Tiancheng (02726) is a global epitaxial film leader, covering leading domestic and overseas downstream customers. For the first time, it gave a “buy” rating, with a target price of HK$161.18.

The bank estimates that the company's revenue in 2026-2028 will reach 1.31 billion yuan, 2.95 billion yuan and 5.32 billion yuan respectively, and adjusted net profit (excluding share payments, etc.) will be 310 million yuan, 660 million yuan, and 1.11 billion yuan, respectively. The bank believes that the core driving force for future stock prices is the sharp rise in volume and price due to 8-inch displacement, diversification of downstream applications and high pressure, and the leading two-wheel drive global epitaxial fins at home and abroad.