Lyon: Lowering the target price of Lanqi Technology (06809) to HK$433.8 to maintain “outperforming the market” rating

The Zhitong Finance App learned that Lyon released a research report stating that the target price of Lanqi Technology (06809) was lowered from HK$454.2 to HK$433.8, and the target price for A-shares (688008.SH) was lowered from RMB 304.80 to RMB 291.1, maintaining the “outperforming the market” rating. Lanqi Technology's adjusted net profit for the second quarter of this year increased 69% year on year and 31% year on quarter to 719 million yuan, which is in line with the scope of the preliminary performance forecast. Gross margin fell 8 percentage points year-on-year to 61.8% quarterly, mainly affected by increased revenue contributions from low-margin products and rising supply chain costs. In response to second-quarter results and gross margin performance, Lyon slightly lowered its profit forecast and adjusted the target price accordingly. The report also stated that management expects the contribution of DDR5 third-generation to fifth-generation clock drivers (RCDs) to increase further in the second half of the year, and maintains the expectation that MRCD and CXL MXC will record significant revenue from 2027.