Notes on Estun Automation

Source: Bloomberg

Estun Automation (002747 CH): The deep correction fuelled by PBoC’s tightening stance looks to have exhausted itself.

Yet, automation remains one of the secular themes which in ATEC’s view is still at its nascent stage. China’s labour shortage and cost escalation is well documented and is made even worse in a post-CoVID world. Hence, ATEC believes this to be the right timing and opportunity to gain exposure in this thematic.

So long as CNY 29 area holds, ATEC anticipates Estun’s stock price to potentially exceed its previous peak in the months ahead.