A strong recovery in China’s auto sales and a positive outlook for the EV industry has prompted UOB Kay Hian research analyst John Cheong to retain his ‘buy’ rating for InnoTek with a higher target price of $1.20 from 82 cents previously.

Based on data from the China Association of Automobile Manufacturers, March auto sales surged as China recovered from the pandemic, jumping 67% y-o-y and 64% m-o-m to 2.38 million.

China's 1Q2021 passenger vehicle sales are estimated to grow 73% y-o-y to 6.34 million units, which Cheong believes will bode well for InnoTek, which derives over 30% of its revenue from its exposure to the China automobile market.

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