On August 27, SENSETIME-W fell 3.06% in regular trading, trading at HK$1.425/share, with turnover of HK$314 million.
The decline came one day after the company released its H1 interim results on August 26, reporting revenue of RMB 2.91 billion (up 23.4% YoY) and its first-ever IFRS net profit of RMB 617 million, turning around from a loss of RMB 1.49 billion a year earlier. However, adjusted net loss still stood at RMB 386 million, indicating core operations have not yet fully achieved profitability. Gross margin improved to 41.4%, up 2.9 percentage points YoY.
The market had already largely priced in the profit turnaround after the company issued a positive profit alert on August 16, which triggered a nearly 9% rally on August 17. With Goldman Sachs maintaining a Neutral rating and a target price of only HK$2.05, short-term funds opted to lock in gains following the formal results release.
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