Macquarie: Initiating coverage of Easy Control Intelligent Driving (07687.HK) with a target price of HKD 98.50. The ATaaS business has become the company's main source of revenue.

According to the latest report from Macquarie, it is expected that the revenue compound annual growth rate (CAGR) of Easy Control Intelligent Driving (07687.HK) will reach 31.5% from 2025 to 2028, with a possibility of turning a profit by 2027. This is their first coverage, valuing the company using the price-to-sales (P/S) ratio, assigning a target price of HKD 98.50 based on a projected P/S ratio of 5.5 for 2027. In terms of valuation, as the penetration rate of ATaaS (Advanced Technology as a Service) continues to increase, the company's profit margins and revenue quality are expected to improve, hence a valuation level higher than the average P/S ratio of comparable companies at 5.6 times is warranted.