0520 GMT - Shanghai Sunmi Technology's overseas expansion remains solid despite the company suffering a 1H loss mainly driven by FX losses from a weaker U.S. dollar, Deutsche Bank analyst Johnny Xie says in a note. The analyst notes that overseas revenue contribution increased to 82% in 1H from 75% in 2025, with margins showing steady improvement despite ongoing cost pressures. However, Deutsche Bank cuts the stock's target price to 72.80 Hong Kong dollars from HK$78.30 to factor in a lower-than-expected improvement in gross margin. Deutsche Bank maintains a buy rating on the stock, which is down 6.7% at HK$55.60.
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