CMB International Securities Recommends Buy for Black Sesame International Holding Limited Amid Strong Revenue Growth and Strategic Expansion
CMB International Securities has issued a Buy recommendation for Black Sesame International Holding Limited, citing a 40% year-over-year revenue growth driven by demand for assisted driving solutions. The company has narrowed its net loss through effective cost control and R&D efficiency. Future growth is expected from the adoption of driving assistance technologies and expansion into robotics. Despite potential risks like competition and geopolitical factors, Black Sesame's diversification and overseas orders enhance its competitive advantage.
CMB International Securities has given its Buy rating due to a combination of factors that highlight Black Sesame International Holding Limited’s potential for growth. The company’s revenue increased significantly by 40% year-over-year, driven by strong demand for its assisted driving solutions. Despite facing margin pressure, the company has managed to narrow its net loss on a non-IFRS basis, thanks to effective cost control and improved research and development efficiency.
Looking ahead, CMB International Securities anticipates substantial revenue growth in the coming years, supported by the increasing adoption of driving assistance technologies and advancements in chip performance. The company’s strategic focus on SoC-based solutions and its expansion into the robotics sector are expected to drive future growth. The valuation reflects Black Sesame’s diversification and its ability to secure significant overseas orders, which underscores its competitive advantage and global scalability. However, potential risks such as industry adoption rates, competition, and geopolitical factors are acknowledged.
