UBS: Target price of HK$168 for Chuangke Industries (00669)'s “buy” rating

The Zhitong Finance App learned that UBS released a research report saying that the management of Chuangke Industries (00669) reiterated their confidence in reaching the 6 to 7% revenue growth guideline this year, mainly driven by Milwaukee's low year-on-year double-digit growth; the bank gave Chuangke Industrial a “buy” rating, with a target price of HK$168.

The bank also said that AIDC has benefited from years of backlog order support from contractors, and related sales have remained strong. The bank quoted management's forecast that the EBIT profit margin is expected to reach 10% this year, earlier than the original schedule, and due to the continued expansion of gross margin and the stability of the sales and administrative expenses ratio, it is expected that the EBIT profit margin will increase further. Management also pointed out that there is potential room for an increase in the dividend payout ratio and may increase share repurchases.