DBS Group Research has upgraded its rating of Sunpower Group from “hold” to “buy” with a higher target price of 69 cents from 49 cents previously, after the company saw revenue and earnings for 2Q20 reach record highs. 

Revenue for 2Q20 rose 64.5% y-o-y to RMB1.08 billion ($214 million), which was led by the Manufacturing & Services segment. Underlying net profit, which was bolstered by lower finance costs, soared 131.2% y-o-y to RMB122.5 million for the quarter.

Analyst Ling Lee Keng said the worst appears to be over for Sunpower as China’s economic activities resume. Sunpower’s green investments (GI) growth could be back on track given that the textile sector has seen domestic sales return to pre-COVID-19 levels. 

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