Equity Analysis /
Hong Kong

HK : Ten Pao Group - Solid FY22F outlook on SCS demand

    Ray Kwok
    Ray Kwok

    Technology Analyst

    CGS-CIMB
    25 March 2022
    Published by

    FY21 net profit rose 31% yoy, driven by 42% revenue growth and 170bp GPM decline. FY22F revenue could grow 16.5%, underpinned by strong order growth for SCS for power tools and new product launches for EV battery suppliers. Reiterate Add. Ten Pao trades at an attractive 4.4x FY22F P/E, in our view. Our TP of HK$3.86 is based on 7x FY23F P/E, on par with its peers.