M Stanley raised revenue forecasts for WEIGAO GROUP for 2026 to 2028 by 4% each year, indicating annual growth of about 4% to 5%. However, they lowered gross margin assumptions due to pricing pressure and volume-based procurement impacts, resulting in a reduction of EPS forecasts for the same period. The target price was decreased from HKD6 to HKD5.2, while maintaining an Equalweight rating, reflecting a reasonable valuation supported by stable growth and dividend yield despite recent challenges in the market.
