BOCI has released a research report expressing optimism about FORTIOR (01304)'s proposed acquisition of Dutch sensor company ScioSense, while raising its earnings forecasts to reflect solid first-half results and strong end demand year-to-date. The target price has been lifted from HK$187.7 to HK$187.9, with a Buy rating maintained.
The bank noted that combining sensor technology with motor control chips is expected to strengthen the company's integrated product development capabilities and support expansion into broader industrial, robotics, and automotive solutions. Taking into account the technology assets, customer relationships, and contingent payment arrangements, the bank considers the transaction price reasonable.
The bank stated that ScioSense was already close to breaking even in the first half, and after the deal closes, there is still room for improvement in procurement, operational efficiency, and customer development. As business integration progresses, earnings recovery and product synergies are expected to support mid-line earnings per share growth.
The bank now forecasts FORTIOR's 2026 earnings per share at RMB 3.34 and 2027 at RMB 4.64, which are 6% and 11% higher than previous estimates, respectively.