KUALA LUMPUR (June 6): Phillip Capital has initiated coverage of TT Vision Holdings Bhd (KL:TTVHB) with a 'buy' rating at RM1.08, saying TTV is expected to benefit from the global acceleration in solar energy adoption and anticipated semiconductor sector recovery, with a target price (TP) of RM1.50 per share.

In a note on Thursday, the research house said new product innovations, capacity expansion and a newly set-up joint venture with ATW, a subsidiary of China-listed Wuxi Autowell (ATW) Technology Co Ltd, will drive margin expansion and profit growth in the years ahead.

Most importantly, it said, the ongoing global supply chain relocation by global multinational companies, such as Jinko Solar, Longi Solar, JA Solar, First Solar, Maxeon, and Hanwha Qcells, had set the stage for a multi-year growth trend that favours TTV.

Phillip Capital is projecting a strong three-year forward net profit compound annual growth rate of 36% for TTV, underpinned by: i) its ability to capture higher solar and semiconductor orders from existing and new customers, driving higher order book replenishment; ii) global market share gain; and iii) margin expansion via new product innovations and operating leverage.

“We initiate coverage with a 'buy' rating and 12-month TP of RM1.50, based on a target 33 times price-earnings multiple on earnings per share for the financial year ending Dec 31, 2025.

“We like TTV for its exposure to the fast-growing solar industry, indirect exposure to Wuxi’s through the new JV, its innovative product pipeline, and strong earnings growth prospects,” the research house said.