Citi: Maintains "Buy" rating and HK$1,394 target price on Zhongji Innolight (03308.HK) H-shares; demand unchanged, share price correction may be excessive.

Zhitong Finance APP has learned that Citi issued a research report stating that it maintains the "Buy" rating on the H-shares of Zhongji Innolight (03308.HK) and the target price of HK$1,394, while keeping the A-share (300308.SZ) target price unchanged at RMB 1,212. The bank believes that the 12.7% and 10.9% declines in Zhongji Innolight's A-shares and H-shares on November 3, respectively, are believed to be related to investor concerns about order cuts, but management has clarified that the company has not seen widespread order cuts, with only limited structural adjustments made by individual customers. Citi believes that the related share price adjustment may be excessive, the company's fundamentals remain solid, but the share price has been dragged down by cooling sentiment in the artificial intelligence market.